India: Money Laundering

In Parvinder Singh vs. Directorate of Enforcement, 2026 INSC 519, the Supreme Court delivered an important ruling clarifying the scope and effect of the first proviso to Section 223(1) of the Bharatiya Nagarik Suraksha Sanhita, 2023 (“BNSS”), holding that an accused must be afforded an opportunity of hearing before cognizance is taken on a complaint and that non-compliance with such requirement renders the proceedings void ab initio even in money laundering matters.

In Parvinder Singh v. Directorate of Enforcement, the Supreme Court held that the first proviso to Section 223(1) BNSS applies to PMLA proceedings and that CrPC Sections 200–205 governing complaints apply to such cases.

To put it simply, the question at hand is whether the ED can proceed only against property linked to criminal activity relating to a scheduled offence, or whether it can also move against untainted assets of corresponding value where the original tainted property is no longer traceable.

The Government of India has approved relaxations to the foreign direct investment ("FDI") regime applicable to investments from countries sharing a land border with India.

On March 10, 2026, the Government of India announced a significant recalibration of Foreign Direct Investment (FDI) policy governing investments from countries sharing a land border with India, namely, China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar, and Afghanistan (collectively, "LBC countries").

In April 2020, amid concerns regarding opportunistic acquisitions during the COVID-19 pandemic, the Department for Promotion of Industry and Internal Trade ("DPIIT"), Government of India, issued Press Note 3 (2020 Series) ("PN3 2020"). PN3 2020 fundamentally altered India's foreign direct investment ("FDI") framework by requiring government approval for investments originating from countries sharing land border with India.

The Court observed that the PMLA provides for separate events and acts of seizure, freezing, retention, continuation and confirmation and each event has its own statutory requirements. These terms are not interchangeable.

Money laundering is an illicit process of concealing the origins of illegally obtained money.

The High Court of Karnataka, through its judgment dated 17.10.2025 in Deputy Director, Directorate of Enforcement v. Asadullah Khan & Ors. , held that properties mortgaged to a bank as security for loans cannot be attached under the Prevention of Money Laundering Act, 2002 ("PMLA").