Under Section 24 of PMLA, the burden of proof principle

Solution

Section 24 of PMLA creates a statutory reversal of burden of proof. It provides that when a person is accused of having committed the offence under Section 3, the burden of proving that the proceeds of crime are untainted property shall be on the accused. This is a departure from the traditional presumption of innocence and the principle that the prosecution must prove guilt beyond reasonable doubt. The Supreme Court in Vijay Madanlal Choudhary v. Union of India (2022) upheld this provision as constitutionally valid. The accused must discharge this burden on the balance of probabilities. This provision is critical for banking law exams as it affects how enforcement agencies approach prosecution.