Money laundering law can’t be used as weapon to jail people, says SC

The Supreme Court declared on Wednesday that the Enforcement Directorate’s (ED) indiscriminate application of the Prevention of Money Laundering Act will undermine the legislation’s value and it cannot be used as a weapon to put individuals behind bars. The Supreme Court made the remark at a hearing on an appeal of a Jharkhand-based company in a money laundering case.

‘If you indiscriminately start using ED proceedings then the Act will lose its relevance’, the bench comprising Chief Justice NV Ramana and Justices A S Bopanna and Hima Kohli said.

‘The ED is diluting the Act. Not just this case. If you start using it as a weapon against ? 1,000 (money laundering) case, ? 100 case, then what will happen. You can’t put all people behind bars. Such indiscriminate use will affect the value of Act’, the bench added.