MONEY LAUNDERING AS A FORM OF WHITE-COLLAR CRIME IN INDIA: A CRITICAL ANALYSIS OF THE LEGAL AND REGULATORY FRAMEWORK

Money laundering is one of the most serious forms of economic and white-collar crime confronting modern legal systems. It enables criminals to conceal, possess, use or project the proceeds of unlawful activities as legitimate property. The consequences extend beyond individual victims because large-scale laundering can undermine financial institutions, facilitate corruption, strengthen organised crime and distort legitimate economic activity.
In India, the principal legislative response to money laundering is the Prevention of Money-Laundering Act, 2002 (PMLA). The Act, which came into force on 1 July 2005, provides a specialised framework for investigation, attachment, adjudication and confiscation of property connected with money laundering. It is supported by institutions including the Enforcement Directorate (ED), Financial Intelligence Unit-India (FIU-IND), Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI).
This paper critically examines money laundering as a form of white-collar crime in India and evaluates the legal and regulatory framework governing it. Particular attention is given to the concepts of “proceeds of crime”, scheduled offences, arrest, bail, attachment of property and constitutional safeguards. Important Supreme Court decisions, including Nikesh Tarachand Shah v. Union of India, Vijay Madanlal Choudhary v. Union of India and Pankaj Bansal v. Union of India, are analysed to understand the development of PMLA jurisprudence.

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