The Delhi High Court held that the Enforcement Directorate (ED) is empowered to classify money and assets obtained through criminal acts such as forgery, cheating, or criminal conspiracy in cricket betting as “proceeds of crime” under the Prevention of Money Laundering Act (PMLA). The Court made this ruling while dismissing petitions that challenged the agency’s provisional attachment orders issued over a decade ago in connection with a high-value international cricket betting scam. The Court observed that assets tainted by criminal activity at inception retain their “criminal character” throughout any subsequent use.
The matter arose from an alleged international cricket betting racket allegedly operated via the UK-based website Betfair.com. Investigators claimed that the operation was run from a farmhouse near Vadodara by Girish ‘Tommy’ Patel and associates. Acting on intelligence inputs, the ED conducted searches in May 2015 at the farmhouse and residences of key associates, recovering cash, digital records, and documents related to illegal betting and unlicensed money transfers. The searches also uncovered SIM cards procured using forged identities, leading the Vadodara Police to register an FIR for cheating, forgery, and criminal conspiracy.
In September 2015, the ED issued provisional attachment orders over movable and immovable assets worth approximately Rs. 20 crore linked to the accused, followed by a show-cause notice under the PMLA the next month. The accused later approached the Delhi High Court challenging these actions.
The petitioners argued against the ED’s attachment orders, contending that the assets were unrelated to any scheduled offence and that the agency had exceeded its jurisdiction. They claimed that the use of such assets for activities not explicitly defined as scheduled offences could not render them “proceeds of crime.”
The Bench of Justice Anil Kshetarpal and Justice Harish Vaidyanathan Shankar rejected the challenge, noting that, "For instance, if a person acquires immovable property through acts of forgery, cheating, and criminal conspiracy and subsequently employs such property for downstream activities, even if those activities are not scheduled offences, the income generated remains ‘proceeds of crime’ under Section 2(1)(u) of the PMLA."
The Court emphasized that the criminal taint attached to property at the time of its acquisition continues to persist, irrespective of its later use. It further observed that the alleged network generated nearly ₹2,400 crore in betting proceeds within a short period, with a portion allegedly channeled through the petitioner acting as a conduit by distributing “Super Master” betting login IDs across India. The Court reinforced that the ED’s actions, including freezing assets, were well within its powers to prevent laundering of crime proceeds.
The Court dismissed all petitions, upholding the ED’s provisional attachment orders. The ruling reinforces that property or money originating from criminal activities, even if used in subsequent lawful ventures, remains subject to confiscation under the PMLA. The judgment sends a clear signal that the judicial system will not permit circumvention of anti-money laundering laws and strengthens the ED’s authority in tackling sophisticated financial crimes.
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