White collar crime lawyers for fraud, PMLA and economic offences

Main laws

BNS 2023, PMLA 2002, PC Act 1988

Agencies

EOW, CBI, ED, SFIO

PMLA bail

Twin conditions, Section 45

Cheating

Up to 7 years, BNS 318(4)

The main white collar offences

Special statutes add their own offences: money laundering under the Prevention of Money Laundering Act 2002, bribery and criminal misconduct under the Prevention of Corruption Act 1988, corporate fraud under Section 447 of the Companies Act 2013, and tax and customs offences. Many complaints of cheating are really civil disputes over money; courts repeatedly hold that a mere breach of contract is not cheating unless dishonest intent existed at the start.

Money laundering cases before the Enforcement Directorate

The PMLA applies only where there is a scheduled offence, such as cheating, forgery, corruption or certain tax and customs offences, that has generated proceeds of crime. The ED records an Enforcement Case Information Report, issues summons under Section 50 to give evidence and documents, and can provisionally attach property under Section 5 and arrest under Section 19.

In Vijay Madanlal Choudhary v. Union of India (2022) the Supreme Court upheld the main provisions of the PMLA, including the twin conditions for bail in Section 45: the court must be satisfied that there are reasonable grounds for believing the accused is not guilty and is not likely to commit an offence while on bail. Later decisions require the grounds of arrest to be given to the accused in writing, and have recognised that long custody without trial can justify bail despite the twin conditions.

Statements recorded under Section 50 can be used in evidence, so preparation before appearing is essential. We review the documents sought, prepare the client, and where appropriate seek protection from the court in advance. Attachment orders are challenged before the Adjudicating Authority and then the Appellate Tribunal.

Bank fraud, corruption and corporate investigations

Bank fraud. When a bank classifies a loan account as fraud under the RBI's directions, it reports to the RBI and may file a complaint with the CBI or police. In State Bank of India v. Rajesh Agarwal (2023) the Supreme Court held that borrowers must be given an opportunity to be heard before their account is classified as fraud. We respond to show cause notices from banks and challenge classification that ignores this.

Corruption. Under the Prevention of Corruption Act 1988 as amended in 2018, giving a bribe is itself an offence, and police need prior approval under Section 17A before inquiring into a public servant's decision taken in official functions. Cases are tried by special judges.

Corporate investigations. The Serious Fraud Investigation Office investigates companies under Section 212 of the Companies Act on the Central Government's direction, and has powers of arrest. Directors and officers should seek advice before giving statements or producing records.

How we defend an economic offence case

1. Map the allegation against the documents. Most cases are decided by accounts, emails and bank trails, not oral evidence.
2. Manage summons and statements. We prepare for questioning, keep a record of what was produced, and object to coercive conduct.
3. Secure liberty. We apply for anticipatory or regular bail, including under the stricter tests of special laws.
4. Challenge the case itself. Where the dispute is essentially civil or the allegations do not disclose an offence, we petition for quashing of the FIR.
5. Explore settlement. Some offences are compoundable, and others can be quashed after settlement where they are largely private in nature.

If you are the victim of fraud

Police often decline to register large fraud complaints, saying the matter is civil. A well-organised complaint changes that: a chronology, the representations made, the money paid with bank proof, and the point at which dishonest intent becomes clear. Where the police do not act, a complaint to the Superintendent of Police, and then an application to the Magistrate under Section 175(3) BNSS (old 156(3) CrPC), can direct registration and investigation.

Recovering money usually needs a parallel civil remedy, such as a recovery suit or arbitration, because a criminal court punishes but does not decree debts.

Mistakes that make economic offence cases worse

• Giving a detailed statement to an agency without legal preparation.
• Destroying or altering records after notice, which can become a separate offence.
• Transferring property after attachment or freezing orders.
• Treating a criminal complaint as a negotiation tool, which can lead to counter-cases for false complaint.

Attachment and freezing of property

Investigators often move against assets before any trial. Under Section 5 of the PMLA, the ED can provisionally attach property believed to be proceeds of crime for up to 180 days. The attachment lapses unless the Adjudicating Authority confirms it after hearing the affected persons, and its order can be appealed to the Appellate Tribunal and then the High Court. Third parties who bought property in good faith can object.

In ordinary criminal cases, Section 107 BNSS now allows the Magistrate, on the police's application, to attach or forfeit property believed to be proceeds of crime, after notice to the person concerned. Bank accounts are also frozen under Section 106 BNSS. Each of these orders can be challenged, and acting early improves the chance of release or of limiting the freeze to the amount genuinely in dispute.

How fees are worked out

Economic offence matters vary greatly in size. We quote stage-wise fees in writing: for responding to summons and agency appearances, for bail or quashing applications, for attachment proceedings, and for trial. Fees depend on the forum, the volume of documents and the number of hearings, not on any promised outcome.

Documents you need

Bring the documents that show how the money moved. For a defence, also bring every notice or summons received.

• Copy of the FIR, complaint, ECIR or summons
• Agreements, invoices, purchase orders and correspondence
• Bank statements showing the disputed transactions
• Company records: board resolutions, ledgers, audit reports
• Notices from the bank, ED, SFIO or other agencies
• Any statement already given to investigators
• ID and address proof

How we handle it for you

1. Confidential review

   We go through the allegation, documents and agency notices under privilege.

2. Strategy

   We identify the offences, the exposure and whether bail, quashing or settlement should come first.

3. Prepare for the agency

   We prepare replies, document sets and the client for appearances and statements.

4. Court proceedings

   We file bail, quashing or complaint applications in the appropriate court.

5. See it through

   We defend at trial or pursue the complaint and any civil recovery to conclusion.

Why clients choose ProudLegal

Frequently asked questions