Quashing of PMLA complaint refused where disputed facts and independent material required trial on alleged money-laundering role.

A quashing challenge to a PMLA complaint was rejected because the petitioner's reliance on the earlier quashing of the alleged predicate CBI proceedings was treated as a defence unsuitable for consideration at the quashing stage. The Court held that the complaint contained independent material, including investigation statements said to indicate involvement in arranging funds, managing HUF accounts and facilitating transactions linked to proceeds of crime. Since the factual controversy over participation in money-laundering activity required evidence, the disputed issues were left for trial and the criminal miscellaneous petition was dismissed.

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Issues: Whether the criminal miscellaneous petition seeking quashing of the PMLA complaint and cognizance order was liable to be allowed on the ground that the foundational CBI proceedings against the petitioner had earlier been quashed and, therefore, no offence of money laundering was made out against him.

Analysis: The petition rested on the contention that the alleged predicate offence against the petitioner had been quashed and that, in any event, the material did not establish any involvement in a process or activity connected with proceeds of crime. The objection raised by the opposite party was that the PMLA complaint disclosed independent material, including statements recorded during investigation, showing the petitioner's role in arranging funds, managing the HUF accounts and facilitating transactions said to be connected with laundering of proceeds of crime. The Court held that the documents relied upon by the petitioner, including the earlier quashing order, were matters of defence and could not be relied upon at the stage of quashing. The disputed factual issues were held to require consideration during trial.

Conclusion: The request for quashing was not accepted and the criminal miscellaneous petition was dismissed.

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