When we talk about the Prevention of Money Laundering Act, 2002 (PMLA), we often think of freezing bank accounts, seizing properties or seizing luxury vehicles. But in a recent and quite unique case, the seizure of over three dozen horses worth around Rs 4 crores, under the PMLA provisions, made headlines and sparked conversations about the evolving nature of asset seizures in investigations into financial crimes.


This case not only highlights the idiosyncrasies of luxury assets but also underlines the flexibility of legal frameworks such as the PMLA in addressing the challenges of money laundering in India.


The context: how horses came under PMLA’s radar


The seizure of horses as ‘proceeds of crime’ under the PMLA came during an investigation into a high-profile case that was part of a money laundering probe into an international cyber fraud case in West Bengal where foreign citizens were duped through fake call centers who provided false technical information. support, fake loans through counterfeit apps, etc. The suspect is said to have laundered money in various ways, including investments in exotic and valuable assets. This included racehorses, which were either purchased directly with illicit funds or maintained and trained with the proceeds of criminal activity, with their racing profits further invested in the money laundering cycle, making them a potential storehouse of laundered money.


Legal framework: the scope of the PMLA


The PMLA authorizes authorities to seize, confiscate or confiscate property or assets derived from criminal proceeds. Article 5 of the law allows provisional seizure of such assets if there is reason to believe that they are related to a planned offense. Horses, like other movable assets, fall within the broad scope of ‘property’ as defined in Section 2(1)(v) of the Act. Under such seizure of animals, the ED imposes restrictions on their sale and once the interim order is confirmed by the Adjudicating Authority of the PMLA, they can be auctioned and the funds obtained from such sale will be kept in the public treasury or refunded to the victims of these animals. the financial fraud.


The seizure of horses is therefore a reminder of how expansive the definition of ‘property’ is under the PMLA. Whether it’s luxury cars, jewelry, real estate or animals, the


The law is equipped to tackle any asset that serves as a conduit for money laundering.


Challenges in securing horses under the PMLA


The attachment to horses points to the broader issue of unique legal, operational and ethical challenges arising from the nature of such movable and living assets.


The first legal challenge authorities must overcome is that the horses were purchased or maintained with the proceeds of crime. Establishing this connection can be complex, especially if the financial process is opaque or complicated.


Second, determining the market value of high-end racehorses can be subjective and require expertise in evaluating factors such as pedigree, racing history and training. Incorrect valuations can lead to disputes or legal challenges.


Third, unlike other possessions, once attached, horses will require daily care, including food, medical care and training. The well-being of the animals during the bonding period is paramount. Authorities may not have the expertise or facilities to care for such animals. This raises concerns about their ability to ensure humane treatment while the animals are under state custody. The Enforcement Directorate (ED) or other authorities may face logistical hurdles in detaining these animals during ongoing investigations. Neglect during the bonding process can lead to ethical violations and animal welfare concerns.


Fourth, it will be crucial that clear ownership of the horses is established. Horses can be owned jointly or registered under different names, making it challenging to link them directly to the suspect.


And finally, movable property such as horses can be difficult to manage and secure as evidence during ongoing investigations. Ensuring that they remain in their original state is critical to their admissibility in court.


Global context: parallels and precedents


The use of luxury assets such as horses in financial crime is not unprecedented. There have been cases worldwide where exotic animals and other valuables have been seized as part of money laundering investigations:



As enforcement of the PMLA evolves, this case will likely set a new precedent. It highlights the idiosyncrasies of luxury assets and underlines the flexibility of legal frameworks such as the PMLA. It confirms that all forms of assets, conventional or unconventional, fall within the purview of anti-money laundering laws in India. For policymakers, this is an opportunity to refine frameworks that address the operational and ethical complexities of the seizure of movable and living assets. For enforcement agencies, it is an opportunity to develop specialized expertise in dealing with niche assets, while maintaining compliance with international standards.


(The author is a lawyer practicing at the Supreme Court of India)


Views are personal.



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Nebraska medical marijuana legalization is closer to reality after judge's ruling but an appeal is likely
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Nebraska medical marijuana legalization is closer to reality after judge's ruling but an appeal is likely
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Nebraska medical marijuana legalization is closer to reality after judge's ruling but an appeal is likely
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US woman finds marijuana instead of burrito in package she ordered from Uber Eats
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Nebraska judge's ruling edges the state closer to legalizing medical marijuana - ABC News
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Nebraska judge's ruling edges the state closer to legalizing medical marijuana - WDRB
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Lancaster County District Court rules decision to legalize medical marijuana in Nebraska should s...
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Discounts and Best Deals for cannabis products online | 50% Off Everything (Excludes Accessories)
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urban-gro Expands Cannabis Sector Offering with Launch of New Processing and Extraction Division
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Nebraska judge's ruling edges the state closer to legalizing medical marijuana - Delta Optimist
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Nebraska judge’s ruling moves the state closer to legalizing medical marijuana - Toronto Star
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Nebraska judge’s ruling edges the state closer to legalizing medical marijuana - Toronto Star
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Nebraska medical marijuana legalization is closer to reality after judge’s ruling but an appeal is likely - KOB 4
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Nebraska judge dismisses challenges against medical marijuana petitions - Omaha World-Herald
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Lectures on Tap - "The History of Cannabis" Tickets, Tue, Dec 3, 2024 at 6:30 PM
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Verdict reached in case over legality of medicinal marijuana in Nebraska
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YouTube's High Science Is A Must-Watch For Cannabis Enthusiasts - Benzinga
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Nebraska judge sides with medical marijuana advocates in petition signature case
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Alcoholic Beverage and Cannabis Administration padlocks 14th illegal cannabis business’ doors in DC - DC News Now | Washington, DC
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Ohio's embrace of legal weed driving push for OSP to get new drug detection tool - MSN
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Florida Cannabis Industry Expands with New Vertical Licenses: Full List of Winners - stupidDOPE.com
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Mankato city council passes cannabis retail ordinances - KEYC
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Verdict reached in case over legality of medicinal marijuana in Nebraska - Nebraska Public Media | News
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Nebraska voters decision to legalize medical marijuana will stand - KETV
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Two applicants from Owensboro among first selectees for medical cannabis dispensary licenses
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Kentucky Awards First Medical Cannabis Dispensary Licenses - Benzinga
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Ohio's embrace of legal weed driving push for OSP to get new drug detection tool - WLWT Cincinnati
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Judge rules in favor of Nebraska medical marijuana petitioners - WOWT
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Democrats Make Last Plea to Biden to Change Marijuana Law Before Trump
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District judge sides with Nebraska medical cannabis ballot sponsors in legal challenge
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B.C. crime news: Illicit cannabis, submachine-guns seized from West Van home | Vehicles, home damaged in Pitt Meadows shooting - MSN
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Democrats Call On Biden to Limit Marijuana Prosecutions Before End of Term
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You Won A Delaware Cannabis License: Now What? | Canna Advisors
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Community Resource Fair - Cannabis Use Effects on Young Brains - YouTube
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Democrats Call On Biden to Limit Marijuana Prosecutions Before End of Term - Common Dreams
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District judge sides with Nebraska medical cannabis ballot sponsors in legal challenge - Nebraska Examiner
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How Marijuana Seeds Can Help For Everyday Medicine - gdhsgd.webworker-ag.de
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Federal Health Officials 'Rejected' DEA's Request To Testify At Marijuana Rescheduling ...
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Flatliners - by Todd Harrison - Cannabis Confidential - Substack
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urban-gro Expands Cannabis Sector Offering with Launch of New Processing and Extraction Division - AccessWire
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Landlord faces £10,000 bill after tenants turn rental into cannabis farm - The Telegraph
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Democrats Make Last Plea to Biden to Change Marijuana Law Before Trump - The New Republic
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Cannabis wholesale platform LeafLink buys Leaf Trade - Marijuana Business Daily
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Cannabis license lottery on hold in Minnesota - ABC 6 News - kaaltv.com
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What to expect from next week’s cannabis rescheduling hearing
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Bellevue family 'ecstatic' over medical marijuana lawsuit's dismissal
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Trump's CDC Pick Dave Weldon A Setback For Marijuana Policy - GreenPharms
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Kentucky awards 1st medical cannabis licenses to 36 dispensaries around the state - WDRB
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St. Louis County Board approves cannabis ordinance - WDIO
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Carlton County bans marijuana consumption in public spaces - Cloquet Pine Journal
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DEA Posts Details On Next Week's Marijuana Rescheduling Hearing, Including Live Stream ...
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DEA to Hold Hearing on the Rescheduling of Marijuana
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Four Northern Kentucky businesses awarded medical marijuana dispensary licenses - Cincinnati Business Courier
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Federal Marijuana Banking Legislation Could Still Pass By Year’s End, But Time is Running Out
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Germany-bound traveller from Canada caught carrying 45 kilos of weed in her luggage: Toronto Airport RCMP - CP24
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Medical Cannabis Dispensary Lottery Awards Several Businesses In West Kentucky | WKDZ
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Ohio Lawmakers Want to Make Cannabis Illegal Again
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City Council introduces ordinance which amends marijuana licensing - WTVB
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Nebraska judge's ruling moves the state closer to legalizing medical marijuana
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Man gets 13 years for importing cannabis - Cyprus Mail
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Ohio Bill Would Crack Down on Intoxicating Hemp Products
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Ohio Bill Would Crack Down on Intoxicating Hemp Products - Cleveland Scene
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Pair convicted on cannabis charges to be deported - BBC
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What's next for Nebraska medical cannabis, paid sick leave, abortion, school choice
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New York's Legal Marijuana Market Set To Pass $1 Billion In Sales By End Of 2024
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Kentucky Holds Lottery To Award First Medical Marijuana Dispensary Licenses
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Biden Should Expand Marijuana Pardons And Issue New Cannabis Prosecution Memo Before His Term Ends, Lawmakers Say - Marijuana Moment
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Marijuana education program draws interest at Bellarmine University - The Courier-Journal
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Thrive Capital, Tiger Global-Backed Cannabis Wholesale Platform LeafLink Buys Leaf Trade: Co. Will Process ~$9B In Annual GMV - Benzinga
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Florida approves 22 applicants for medical marijuana dispensary licenses
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Sioux Falls woman cited for weed, more - nwestiowa.com
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How Ohio’s recreational marijuana sales compare to Michigan
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Mankato limits cannabis retailers to four, sets strict zoning rules
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Pair convicted on cannabis charges to be deported to Malaysia - BBC
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Teens learn about the dangers of cannabis and smoking while having fun - NNSL Media
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Federal Policy Could Add $3 Billion To Cannabis Industry: On Track To Reach $55 Billion By 2030 - Benzinga
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Students learn about the dangers of cannabis - The Southern News
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Nebraska Judge Dismisses Legal Challenge to Medical Marijuana Initiatives Approved by Voters
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