Money-laundering prosecution fails when the scheduled offence is quashed and the predicate foundation no longer survives.

Prosecution under the Prevention of Money Laundering Act depends on the existence of criminal activity linked to a scheduled offence. Where the predicate criminal case has been quashed by a competent court, the foundation for the money-laundering prosecution does not survive, and the complaint cannot be sustained. The Madras HC accordingly quashed the prosecution in its entirety.

---

---

Issues: Whether the prosecution for money-laundering could continue after the proceedings in the scheduled offence had already been quashed.

Analysis: The offence under section 3 of the Prevention of Money Laundering Act is dependent on the existence of criminal activity relating to a scheduled offence. Once the predicate criminal case is quashed by a competent court, the foundation for prosecution under the money-laundering statute does not survive.

Conclusion: The prosecution in the complaint under the Prevention of Money Laundering Act could not be sustained and was quashed in its entirety.

---