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SC to Examine ED's Power to Attach Non-Scheduled Offence Assets Under PMLA Section 5

PolityHIGH
Target:UPSC GS-IIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link
16 Feb 2026
~2 min
Source: Indian Express
Key Data:February 9, 2026November 2025₹20 crore₹2,400 croreSection 2(1)(u) PMLASection 5 PMLA
Bodies:Supreme CourtDelhi High CourtEnforcement Directorate (ED)
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What This Article Covers

1.The Supreme Court has stayed a November 2025 Delhi HC order that upheld ED's attachment of assets linked to an international cricket betting racket.

2.The legal question is whether income from a non-scheduled offence (betting) can be treated as 'proceeds of crime' under PMLA Section 2(1)(u) if linked to a scheduled offence (forgery).

3.The case examines the procedural validity of the ED's Provisional Attachment Order under Section 5 and the constitutional jurisdiction of High Courts under Article 226.

The Big Picture
Prelims · HighMains · High

The Supreme Court has stayed a Delhi High Court order and will re-examine a critical interpretation of the Prevention of Money Laundering Act (PMLA). The core issue is whether the Enforcement Directorate (ED) can attach property linked to an activity not listed as a 'scheduled offence' by connecting it to a separate scheduled offence. This case tests the limits of the ED's expansive powers under the PMLA.

Exam Lens

Quick Exam Facts From News

Case DateFebruary 9, 2026 (SC stay)
HC Order DateNovember 2025 (Delhi HC)
ED Attachment Value₹20 crore (approx.)
Alleged Betting Amount₹2,400 crore
PMLA SectionSection 2(1)(u) & Section 5

1-Minute Revision

  • ›Case Date: February 9, 2026 (SC stay)
  • ›HC Order Date: November 2025 (Delhi HC)
  • ›Target this Legal Point: Definition of 'Proceeds of Crime' under Section 2(1)(u) of PMLA.
  • ›Target this Nodal Body: Enforcement Directorate (ED) is the investigating agency under PMLA.
  • ›Target this Constitutional Power: High Courts' writ jurisdiction under Article 226.

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Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which central agency is the primary investigative authority for offences under the Prevention of Money Laundering Act (PMLA), 2002?

Q2Statement-basedHard

Consider the following statements regarding the Prevention of Money Laundering Act (PMLA):

1. The Enforcement Directorate's power to investigate under PMLA is triggered only when the property is derived from a 'Scheduled Offence'.

2. A 'Provisional Attachment Order' under Section 5 of PMLA can attach property for an indefinite period during investigation.

3. The appellate mechanism under PMLA flows from the Adjudicating Authority to the Appellate Tribunal and then to the Supreme Court.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the news article, what was the approximate value of assets provisionally attached by the Enforcement Directorate (ED) in the case related to the online cricket betting racket?

Q4Application/ImpactMedium

What is the primary legal principle being examined by the Supreme Court in the case discussed in the article?

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