Senior advocate Amit Desai, who represented Malik, argued as the alleged offence took place in 1999 and the PMLA was enacted later
Mumbai: The Bombay high court on Friday reserved its order after the conclusion of arguments over the habeas corpus petition filed in connection with Maharashtra minister Nawab Malik’s arrest. The verdict will be pronounced on Tuesday.
Additional solicitor general Anil Singh, who appeared for the Enforcement Directorate (ED), told a division bench of justices Prasanna Varale and Shriram Modak that an offence under the Prevention of Money Laundering Act (PMLA) involves laundering, its knowledge, and possession of property purchased through laundered money.
ED cited the PMLA provisions and added as laundering and possession were continuing, hence its application in Malik’s case could not be considered to be applied retrospectively. It said the claim of Malik being illegally detained was baseless and hence the petition should be dismissed.
Senior advocate Amit Desai, who represented Malik, argued as the alleged offence took place in 1999 and the PMLA was enacted later, its provisions could not be applied retrospectively. Desai said hence Malik’s remand and custody were illegal and he should be released forthwith.
Desai submitted mere possession of the property would not imply Malik was involved in money laundering. He said it could have been done by someone else and he then came in possession without knowing that purchase was made out of laundered money. “Ipso facto possession of property does not mean the commission of a crime under [PMLA] Section 3,” said Desai.
Desai submitted the special court, which remanded Malik in ED custody, erred by not taking into consideration that the PMLA was enacted later and hence his arrest on February 23 was illegal.
