PMLA shield doesn't follow predicate offence protection: Delhi HC

In a significant legal ruling on money laundering prosecutions, the Delhi High Court has held that defendants cannot automatically invoke pre-arrest protection in PMLA cases merely because such protection has been granted in the underlying criminal matter. Justice Madhu Jain made the observation while examining whether shields granted under one set of proceedings extend to another. The judgment establishes that each case must be evaluated independently on its merits under the relevant legal framework. This distinction between PMLA proceedings and predicate offence cases has important implications for accused persons facing dual prosecutions. Legal experts say the ruling reinforces the independent nature of money laundering investigations and prosecutions, which operate under a distinct statutory regime from traditional criminal offences. The decision aligns with the Supreme Court's previous pronouncements on the autonomy of PMLA proceedings, where courts assess applications for pre-arrest protection based on specific factors relevant to the anti-money laundering law rather than decisions in related matters. The clarification is expected to influence how courts handle pre-arrest bail applications in money laundering cases going forward.