Case Note & Summary
The High Court allowed the criminal application filed by Applicant under Section 482 of the Cr.P.C., quashing the process issued against him by the Designated Court in PMLA Special Case No. 1089 of 2021 -- The Court found that the properties purchased by M/s. Premier Port Links Pvt. Ltd. in 2005-2007 predated the alleged proceeds of crime generated in 2020-2021 -- There was no evidence linking the Applicant to the proceeds of crime or showing his knowledge thereof -- The Court held that the essential ingredients of Section 3 of PMLA were not satisfied, and continuing the proceedings would be an abuse of process -- The interim application was disposed of accordingly
Headnote
Criminal Law-- Code of criminal Procedure, 1973-- Section 482 -- Prevention of Money Laundering Act (PMLA), 2002-- Sections 3, 4, 45 -- Prevention of corruption Act, 1988-- Section 7 -- Indian Penal Code, 1860 -- Section 120B-- Application for quashing of criminal proceedings-- Proceedings under PMLA, 2002 and other Acts-- Process issued by trial court against applicant and other accused-- Allegations of collection of money from Home Minister and other accused-- Trial of money-- Transit of cash throuh Havala-- Proceeds of crime were generated between December 2020 and February 2021-- Only allegation against applicant/accused no.11 that he purchased certain properties in the year of 2005-2007-- Proceeds of crime were estimated at Rs 4.70 Crores during relevant period-- Role of applicant was to assist prime accused family in concealment and money laundering activities by allowing company to take illegal loans-- Section 3 of PMLA referred- Purchase of property by applicant in 2005-2007 having no nexus with the alleged crime as offence committed after acquisition of property--- Case of Pavana Dibbur (Supra) referred-- Condition precedent for existence of proceeds of crime is the existence of scheduled offence-- Purchase of property had no nexus with alleged offence-- The test of "Sufficient ground for proceedings" against the applicant not satisfied-- Fit case to exercise inherent jurisdiction-- Impugned order qua applicant quashed-- Application allowed Para-- 17, 19, 20, 25, 27, 31, 32, 33
Issue of Consideration
The Issue of Consideration was whether the process issued against the Applicant under Section 3 punishable under Section 4 of the Prevention of Money Laundering Act, 2002, should be quashed due to lack of prima facie evidence and nexus between the alleged proceeds of crime and the Applicant's actions
Final Decision
The High Court allowed the criminal application and quashed the process issued against the Applicant in PMLA Special Case No. 1089 of 2021, holding that no offence under Section 3 of PMLA was made out and continuing proceedings would be an abuse of process
Law Points
- Section 482 of the Code of Criminal Procedure
- 1973 (Cr.P.C.) -- Section 3 punishable under Section 4 of the Prevention of Money Laundering Act
- 2002 (PMLA
- 2002) -- Section 7 of the Prevention of Corruption Act
- 1988 -- Section 120-B of the Indian Penal Code
- 1980 -- Second proviso to Section 45 of the PMLA
- 2002 -- Scheduled offences under Schedule-A of PMLA -- Prima facie evidence standard for issuing process -- Nexus between proceeds of crime and accused's actions required under PMLA -- Quashing of criminal proceedings under inherent powers
