Prior sanction required to prosecute public servants for money laundering: SC | Current Affairs | Vision IAS
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    Prior sanction required to prosecute public servants for money laundering: SC

    Posted 08 Nov 2024

    2 min read

    The Supreme Court (SC) ruled prior sanction mandatory to prosecute public servants 

    SC ruled that prior sanction is mandatory to prosecute public servants in money laundering cases, establishing a key procedural safeguard under the stringent Prevention of Money Laundering Act (PMLA) and adding a layer of accountability to PMLA prosecutions.

    Key highlights of the Directorate of Enforcement Vs Bibhu Prasad Acharya case

    • Supremacy of CrPC: The court asserted that the PMLA doesn't supersede the requirement for prior sanction under Section 197 of CrPC.
      • The provision corresponds to Section 218 of the Bhartiya Nagrik Suraksha Sanhita, 2023, which has replaced the CrPC with effect from July 1, 2024
    • Section 197 of CrPC: To protect the public servants from prosecutions & from being prosecuted for anything they do in the discharge of their duties.
    • Exception: Protection is not unqualified & public servants can be prosecuted with a previous sanction from the appropriate government.

    Provision towards protection of Civil Servants

    • Articles 311 (1) and 311 (2): They provide Constitutional protection to Civil Servants
    • Public Servants (Inquiries) Act, 1850: Ensures inquiries are conducted fairly and transparently, upholding principles of natural justice within public administration. 

    About PMLA, 2002

    • About: Comprehensive law to prevent money-laundering and to provide for confiscation of property derived from money laundering.
    • Implementation authority: Enforcement Directorate (ED) and Financial Intelligence Unit – India (FIU-IND).
    • According to PMLA, money laundering is the process of making illegally-earned money appear legitimate. The PMLA defines money laundering as any activity that involves:
      • Concealing the proceeds of crime; Possessing the proceeds of crime; Acquiring the proceeds of crime, etc.

     

    • Tags :
    • Prevention of Money Laundering Act (PMLA), 2002
    • Articles 311 (1)
    • 311 (2)
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