INDIA Trends and Developments Contributed by: Vijayendra Pratap Singh, Priyank Ladoia, Shubhangni Jain and Arjun Narang, AZB & Partners
Interplay between foreign laws and Indian jurisdiction A crucial issue in this case was the applicability of foreign laws in India. Section 2(1)(ia) of the PMLA introduces the concept of “corresponding law” , which allows foreign offences to be treated as scheduled offences if they align with those listed under the Act. Furthermore, Section 2(2) states that references to scheduled offences in the PMLA can be construed as references to “corresponding laws” of foreign jurisdictions. This statutory provision ensures that, if an offence committed abroad is akin to a scheduled offence under Indian law, it can be prosecuted under the PMLA, provided that the proceeds of crime are traced to India. The Delhi High Court upheld this interpretation, rejecting the petition - er’s argument that foreign offences should not trigger PMLA proceedings. Challenges in enforcement and trial While the PMLA provides the framework for prosecuting cross-border financial crimes, the accused argued that, since the trial for the predi - cate offence was ongoing in Kansas, the Indian
Special Court had no jurisdiction under Sec - tion 44(1)(c) of the PMLA. However, the Court clarified that while Special Courts in India have discretion to assume jurisdiction over predicate offences, this is not mandatory. In cases where the primary offence is prosecuted in a foreign country, PMLA proceedings in India are limited to seizure, attachment and confiscation of pro - ceeds of crime rather than conducting a full- fledged trial. The judgment in Adnan Nisar highlights the growing extraterritorial reach of the PMLA and the ability of Indian enforcement agencies to prosecute offences with cross-border implica - tions. However, challenges remain in enforcing such provisions effectively, including interna - tional co-operation, procedural complexities and jurisdictional overlaps. As financial crimes become more sophisticated, India must con - tinue refining its mutual legal assistance treaties and cross-border enforcement mechanisms to ensure seamless prosecution of transnational money laundering cases. The ruling sets a sig - nificant precedent for future cases involving off - shore financial crimes linked to India.
230 CHAMBERS.COM
Powered by FlippingBook