November 20, 2025

Gains from legal transaction emanating from illegal act would be construed as proceeds of crime

IntelME Verdict

Precedent Setting

TL;DR

Delhi High Court ruled that gains from legal transactions stemming from illegal acts are considered "proceeds of crime" under the Prevention of Money Laundering Act, reinforcing asset recovery laws.

Analysis

This ruling sets a precedent by affirming that gains from legal transactions arising from illegal acts are considered 'proceeds of crime.' Legal professionals must now be cautious in advising clients on transactions with potential illegal origins, as asset recovery laws globally tighten to prevent money laundering through legitimate investments.

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