The Prevention of Money Laundering Act (PMLA), 2002, is the cornerstone of India's legal framework’’ in the battle against money laundering. Enacted in 2002 and brought into force on July 1, 2005, this legislation was conceived to prevent Money laundering and confiscation of property derived from or involved in such illicit activities. This legislative response directly resulted from international imperatives calling for robust anti-money laundering measures, notably the 1998 United Nations General Assembly's resolution urging member states to implement relevant legislation. At the heart of this framework lies Section 3 of the PMLA, a provision of paramount importance as it furnishes the definition of the money laundering offence. This report aims to conduct a comprehensive analysis of the evolution of Section 3, with a particular focus on the substantial changes introduced by the 2019 amendment and the pivotal interpretation rendered by the Hon’ble “Supreme Court of India in the case of Vijay Madanlal Choudhary v. Union of India (2022), the Supreme Court's pivotal role in interpreting the PMLA is underscored, maintaining the constitutionality of the amended provisions and offering a critical interpretation, especially about the element of "projecting or claiming" proceeds of crime as untainted.
