Sushant Singh Rajput case

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The money laundering case of  Enforcement Directorate (ED) against Rhea chakrburty .

Why in News?

Enforcement Directorate (ED) has lodged a money laundering case against Rhea Chakraborty in connection with Sushant Singh Rajput’s death case.

Enforcement Directorate had sought details from the police in connection with the FIR lodged in connection with Sushant's death case.

In the complaint, filed by Sushant father KK Singh, he alleged defraud of Rs 15 crore by Rhea and her family members.

Sushant's family have also alleged that Rhea was misusing Sushant's money and his credit cards.

What is Enforcement Directorate (ED)?

It is a Multi Disciplinary Organization mandated with the task of enforcing the provisions of two special fiscal laws – Foreign Exchange Management Act, 1999 (FEMA) and Prevention of Money Laundering Act, 2002 (PMLA). 

The Directorate enforces two laws;

-FEMA, a Civil Law having quasi judicial powers, for investigating suspected contraventions of the Exchange Control Laws and Regulations with the powers to impose penalties on those adjudged guilty.

-PMLA, a Criminal Law, whereby the Officers are empowered to conduct enquiries to locate, provisionally attach/confiscate assets derived from acts of Schedules Offences besides arresting and prosecuting the Money Launderers.

Other functions:

-Processing cases of fugitive/s from India under Fugitive Economic Offenders Act, 2018.

-Sponsor cases of preventive detention under Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974(COFEPOSA) in regard to contraventions of FEMA.

Special courts:

For the trial of an offence punishable under section 4 of PMLA, the Central Government (in consultation with the Chief Justice of the High Court), designates one or more Sessions Court as Special Court(s). The court is also called “PMLA Court”.

Any appeal against any order passed by PMLA court can directly be filed in the High Court for that jurisdiction.

What is Money Laundering & PMLA?

Money laundering is concealing or disguising the identity of illegally obtained proceeds so that they appear to have originated from legitimate sources.

It is frequently a component of other, much more serious, crimes such as drug trafficking, robbery or extortion. 

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