India · Enforcement Directorate
Summons and statements under section 50 of the PMLA, provisional attachment and its confirmation, appeals to the Appellate Tribunal, FEMA show cause notices and adjudication, with counsel briefed for bail and the courts.
The Enforcement Directorate runs two kinds of case. Under the Prevention of Money Laundering Act, 2002 it investigates the proceeds of a scheduled offence, through an Enforcement Case Information Report, summons under section 50, provisional attachment of property under section 5 for up to 180 days, and arrest under section 19. Under FEMA it runs civil proceedings that can end in a penalty of up to three times the sum involved. The first statement and the attachment stage shape most of what follows.
Preparation for appearances under section 50, a chronology of the transactions in question, and a review of the documents called for before they are produced.
Tracing every rupee alleged to be proceeds of crime through bank statements, books and returns, to separate legitimate funds from the alleged proceeds.
Replies to the Adjudicating Authority on a provisional attachment, showing the source of each asset attached and its link, or lack of link, to the scheduled offence.
Appeals to the Appellate Tribunal under section 26 of the PMLA and under FEMA, where chartered accountants may appear as authorised representatives.
Replies to show cause notices under section 16 of FEMA, quantification of the sum involved, and the case for compounding where it is available.
Financial analysis, charts and summaries for the advocate handling bail, quashing or trial in the Special Court and the High Court.
Identify the scheduled offence the ECIR rests on, and its status, because the PMLA case depends on it.
Build the flow of funds from primary records before any statement is given.
Statements, replies and objections that stay consistent across every forum.
Contest the attachment at confirmation and on appeal, with each asset accounted for.
The agency builds its case from bank records. So do we, and we usually find more in them.
Late submission fees, RBI compounding and ED adjudication.
Explore →◆Economic offence and serious fraud investigations against companies and directors.
Explore →◆ED, SFIO, EOW, SEBI, FEMA and NCLT matters under one team.
Explore →◆Show cause notices, DGGI, adjudication, GSTAT appeals and writs.
Explore →| Stage | Provision | What it means |
|---|---|---|
| Investigation opens | ECIR recorded on a scheduled offence | Internal document; the predicate offence must exist and survive |
| Summons | Section 50 | Personal attendance; statement on oath is evidence |
| Search and seizure | Section 17 | Records and assets seized; a copy of the list is given |
| Provisional attachment | Section 5 | Up to 180 days, excluding court stays |
| Confirmation | Section 8 | Adjudicating Authority hears the notice and confirms or releases |
| Arrest | Section 19 | Grounds in writing; production before the court within 24 hours |
| Prosecution complaint | Section 44 | Filed before the Special Court |
| Appeal against confirmation | Section 26 | To the Appellate Tribunal within 45 days |
| Further appeal | Section 42 | To the High Court within 60 days, extendable by up to 60 days |
Three Supreme Court decisions frame most PMLA cases today. Vijay Madanlal Choudhary v. Union of India (2022) upheld the Act’s main provisions, held that statements under section 50 are admissible, and confirmed that there can be no money laundering case without a scheduled offence. Pankaj Bansal v. Union of India (2023) requires the grounds of arrest to be given in writing. Tarsem Lal v. Directorate of Enforcement (2024) limits arrest after the Special Court has taken cognizance.
FEMA cases are civil. They usually arise from overseas investments made without reporting, foreign exchange held or spent outside the permitted routes, export proceeds not realised, or foreign investment received in breach of pricing or sector rules.
| Step | Provision | What it means |
|---|---|---|
| Show cause and adjudication | Section 16 | An Adjudicating Authority hears the matter and fixes any penalty |
| Penalty | Section 13 | Up to three times the sum involved, or up to Rs 2 lakh if not quantifiable, plus up to Rs 5,000 a day for a continuing contravention |
| Holding foreign exchange abroad | Section 37A | Assets in India of equivalent value can be seized |
| First appeal | Section 17 | To the Special Director (Appeals) for orders of officers below a specified rank, within 45 days |
| Appellate Tribunal | Section 19 | Within 45 days; the Tribunal can require the penalty to be deposited |
| High Court | Section 35 | Within 60 days, on a question of law |
Before adjudication, many contraventions can be compounded with the Reserve Bank, which is usually faster and cheaper. See FEMA compounding and adjudication.
Under section 50(3) a person summoned attends in person or through an authorised agent, as the officer directs; in practice the ED usually requires personal attendance. Bail, quashing petitions, discharge and trial are matters for advocates in the Special Court and the High Court. Chartered accountants can appear before the PMLA Appellate Tribunal and in FEMA appeals, and are best placed to rebuild the money trail. LexVerge does the financial work and the appellate filings, and works with the client’s counsel on the criminal side.
Prepared by the LexVerge editorial team and reviewed by Vijay Dhawan, Managing Partner, on 11 October 2026. Facts checked against the Acts, rules, regulations and judgments cited on this page on 11 October 2026. General information, not legal advice: deadlines run from the date of your notice or order, so confirm them for your matter.
What a section 50 PMLA summons requires, how statements are used, the consequences of not attending, and how to prepare for the first appearance.
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Read the guide →Send the summons or the attachment order. A partner will review the documents called for and the timeline, and coordinate with your counsel.
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