The Delhi High Court has ruled that money and properties generated through unlawful cricket betting activities fall within the definition of “proceeds of crime” under the Prevention of Money Laundering Act (PMLA), allowing the Enforcement Directorate to attach such assets.
Justice Navin Chawla dismissed petitions challenging ED’s attachment orders, observing that profits earned from betting — an activity banned under Indian law — cannot be treated as legitimate income. The Court emphasized that once the source of funds is illegal, any asset acquired from those funds remains tainted, regardless of how or where it is invested.
The petitioners argued that the attachment was illegal because no scheduled offence was established, but the Court held that betting-related offences under the Indian Penal Code and state gambling laws are sufficient to trigger PMLA proceedings. It further stated that ED does not need to wait for a final conviction before taking preventive action to stop laundering and dissipation of illicit wealth.
Reaffirming the objective of the PMLA, the Court noted that the law aims to deter criminals from enjoying the benefits of unlawful activities and to protect the financial system from being used to disguise illegal earnings.
