PMLA proceedings sustained where scheduled offences and prima facie basis existed, with statutory remedies barring writ interference

An ECIR and connected provisional attachment under the Prevention of Money Laundering Act, 2002 were not quashed because the charge-sheet disclosed scheduled offences under the IPC, giving a prima facie basis to proceed under the Act. The Court rejected the contention that action under PMLA could arise only after the predicate offences were finally established. It also held that the availability of the statutory remedy under Section 8 and the appeal mechanism under Section 26 made interference under Section 482 CrPC unwarranted at that stage, so no interference was called for.

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Issues: Whether the Enforcement Case Information Report and consequential provisional attachment under the Prevention of Money Laundering Act, 2002 were liable to be quashed on the ground that no scheduled offence or proceeds of crime were made out and that the writ petition under Section 482 of the Code of Criminal Procedure, 1973 should be entertained despite the statutory remedy under the Prevention of Money Laundering Act, 2002.

Analysis: The charge-sheet disclosed allegations of offences under Sections 420, 467, 471, 201 and 120B of the Indian Penal Code, 1860, which are scheduled offences under Section 2(1)(y) of the Prevention of Money Laundering Act, 2002. On the materials placed, there was prima facie basis to proceed under the Prevention of Money Laundering Act, 2002, and the contention that action could not be taken unless the predicate offences were first finally established was rejected. The Court also noted the existence of an effective statutory remedy under Section 8 and an appeal under Section 26 of the Prevention of Money Laundering Act, 2002, making interference under Section 482 of the Code of Criminal Procedure, 1973 unwarranted at that stage.

Conclusion: The challenge to the Enforcement Case Information Report and the connected attachment proceedings was not accepted, and no interference was called for.

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