UPSC-Relevant News Items

1. National Herald case: Special court rejects ED complaint against Gandhis

Page: 5

Summary:

• • A special court in Delhi declined to take cognizance of the Enforcement Directorate’s (ED) prosecution complaint in the alleged Rs 2,000-crore National Herald money laundering case.
• • The court ruled that the Prevention of Money Laundering Act (PMLA) primarily restricts complaints to law enforcement agencies, not those based on initial private complaints.
• • It reaffirmed that a money laundering probe cannot proceed without a scheduled or 'predicate offence' being registered, typically requiring an FIR.
• • The National Herald case originated from a private complaint alleging misappropriation of assets.
• • This rejection highlights the crucial legal distinction between a civil dispute initiated by a private complaint and a criminal proceeding under PMLA.
• • It emphasized the necessity of a proper underlying criminal FIR for ED jurisdiction.
• • This decision limits the ED's ability to pursue investigations derived solely from complaints lacking formal predicate offense registration.

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