The Supreme Court declared on Monday that economic offences, especially money laundering facilitated by technology and Artificial Intelligence (AI), have evolved into a genuine threat to the nation’s financial system. The court, dismissing the bail plea of an accused in a money laundering case, emphasized the need for a distinct approach in matters of bail for economic offences.
In the judgment written by Justice Bela M Trivedi, the bench asserted that economic offences involving intricate conspiracies and substantial losses to public funds should be treated seriously, posing a grave threat to the overall economy. The Prevention of Money Laundering Act (PMLA) was highlighted for its implications, holding individuals accountable for criminal activities related to the concealment, possession, acquisition, and use of proceeds of crime.
“With the advancement of technology and Artificial Intelligence, the economic offences like money laundering have become a real threat to the functioning of the financial system of the country and have become a great challenge for the investigating agencies to detect and comprehend the intricate nature of transactions, as also the role of the persons involved therein,” the court stated.
The bench acknowledged the challenges faced by investigating agencies in deciphering complex transactions due to technological advancements. It emphasized the necessity for meticulous exercises to avoid wrongfully implicating innocent individuals while ensuring that culprits do not escape the law.
While rejecting the bail plea of Tarun Kumar, Vice-President (Purchases) in Shakti Bhog Limited and a director in various Shakti Bhog Group Companies, the court emphasized the importance of concluding trials within a reasonable time when accused individuals are detained.
Kumar, arrested by the Enforcement Directorate in August 2022 on charges of bank fraud and siphoning of proceeds of crime, had sought bail on various grounds, arguing that the investigation was complete, and the trial was likely to be prolonged. However, the court dismissed his plea, noting his failure to meet the stipulations for bail under Section 45 of the PMLA.
The ruling underscores the evolving challenges in combating economic offences with the intersection of technology, AI, and financial crimes.
With inputs from agencies
