A case under the PMLA is initiated after the registration of the scheduled offence. More often that not, it is done on the basis of the FIR itself. One wonders whether it is legal to initiate an ECIR on the basis of only FIR, which is only an allegation on a prima facie basis. The Supreme court itself has held that an FIR is not an encyclopaedia. Further, a chargesheet itself is only a perception of the investigating officer. Hence, it is felt that registration of ECIR on the basis of FIR is bad in law, as no finality regarding the scheduled offence can be inferred.
Further, on registration of the FIR, a person becomes an accused and a case under PMLA is registered on the basis of this FIR. Does he lose the character of an accused? Definitely not. Hence, statements recorded under Section 50 of the PMLA are hit by Article 20(3) of the Constitution of India.
Source: Barandbench
