PMLA court: Cheques, drugs constitute proceeds of crime

In a recent ruling by a special PMLA court in Mohali, bank cheques, despite not being encashed, and narcotics have been deemed as property and considered proceeds of crime under the Prevention of Money Laundering Act. This judgment came as the Enforcement Directorate (ED) conducted extensive searches across 30 locations in the southern region under the Nasha Mukt Bharat campaign. The operation targeted individuals allegedly involved in narcotics trafficking, with a focus on methamphetamine, marijuana, and MDMA.

Special judge Hardip Singh ruled in favor of convicting two accused and sentencing them to three years in rigorous imprisonment. The court dismissed the defense's argument that the seized cheques and narcotics could not be considered proceeds of crime without a clear money trail on record. The court noted that the cheques were used to purchase the contraband, and the accused failed to provide any justification to the contrary.

The ED's search operation aimed to attach the assets of drug syndicates engaged in trafficking and generating proceeds of crime. The crackdown initially targeted four southern states and expanded to include other regions. The operation covered targets in Chennai, Tirunelveli, Nagapattinam, Velankanni, Ramanathapuram, Kolar, Malur, Hoskote, Serilingampally, Nanakramguda, Kozhikode, Kannur, Malappuram, and Thrissur in Kerala; Kolar, Malur, and Hoskote in Telangana; and Kozhikode, Kannur, Malappuram, and Thrissur in Kerala. Over 20 foreign nationals were under surveillance.

The investigation revealed the movement of money generated from drug trafficking, along with other financial records, hawala transactions, and crypto currency dealings. Based on these findings, the agency identified the properties acquired by the suspects, leading to their attachment. This ruling highlights the ED's commitment to dismantling drug syndicates and tracking the proceeds of crime, ultimately contributing to the fight against narcotics in India.