In Ranchi, the Enforcement Directorate (ED) has seized over 35 crore rupees in a raid. The raid was conducted at the residence of the house helper of Sanjiv Lal, the personal secretary to Jharkhand government minister Alamgir Alam.
The ED carried out the raid on Monday at the flat of the house helper, Jahangir Alam, where they seized 35.23 crore rupees. Additionally, more than 2.13 crore rupees were seized from another location.
This raid was part of an investigation into a money laundering case. Besides seizing the money, the ED has also arrested Sanjiv Lal and Jahangir Alam. It is alleged that both were not cooperating with the investigation and were evasive in their responses.
In total, more than 37 crore rupees in cash have been seized in this case so far. Let's find out what the ED does with this seized money.
Under the Prevention of Money Laundering Act (PMLA), property or cash accumulated through embezzlement or manipulation is considered 'criminal proceeds' and is treated as money laundering.
'Proceeds of crime' refers to income obtained through criminal activities, and falls under the jurisdiction of the Enforcement Directorate (ED). In contrast, cases involving 'unaccounted cash' are investigated by the Income Tax Department.
In cases of money laundering, when the ED seizes any property or cash, it is required to report this to the authorities.
Legally, the Enforcement Directorate (ED) has the authority to seize cash, but it cannot keep the recovered money for itself.
According to protocol, whenever the agency recovers cash, it asks the accused about the source of the funds. If the accused cannot explain the source, or if the ED is not satisfied with the explanation, the money is considered 'unaccounted cash' or funds earned through illegitimate means.
Subsequently, under the Prevention of Money Laundering Act (PMLA), the cash is seized. Then, the ED calls a team from the State Bank of India (SBI) to count the notes using machines. A seizure memo is prepared in the presence of the SBI team.
The total amount recovered, and the details of the currency notes, including denominations, are all recorded in the seizure memo. Later, in the presence of witnesses, the cash is sealed in boxes.
After sealing and preparing the seizure memo, the recovered cash is deposited in an SBI branch. This amount is credited to the ED's Personal Deposit (PD) account. Subsequently, this cash is transferred to the central government's treasury.
However, the seized cash cannot be used by the ED, the bank, or the government. After the seizure, the ED prepares an attachment order, and the relevant officer must confirm the seizure within six months.
Once the seizure is confirmed and until the trial is concluded, all the money remains in the bank. During this period, no one can use this money.
If the accused is found guilty, all the money becomes the property of the central government. If the accused is acquitted, all the money is returned to them.
