Absence of Period of Limitation in India’s Prevention of Money Laundering Act, 2002: Analysing Its Impact on Legal Certainty and Fundamental Rights

Abstract

Under the Prevention of Money Laundering Act, 2002 (PMLA), there is no statutory limitation period for initiating an investigation, attachment of property, or filing of prosecution complaints under Sections 3, 5, or 8, even though money laundering is considered a “continuing offence”. Critics suggest that it leads to violation of fundamental rights enshrined in the Constitution. Absence of time bar, prolonged pendency of cases and enhanced power to the Enforcement Directorate (“ED”) are some of the major issues surrounding this legal framework. The researchers have used a Doctrinal approach to analyse this issue, relying on secondary sources. The researchers, through this article, analyse the evolution and judicial interpretation of the “continuing offence” as per Section 3 PMLA, discuss the consequences of the absence of temporal bounds on pending cases, conviction rates, pre-trial detention through ED Annual Reports (2005–2025). The researchers have tried to study global models and propose suggestions that are workable.