Independent money-laundering proceedings survive conditional pardon in the scheduled offence; quashing of cognizance was refused.

Grant of pardon to an approver in the scheduled offence did not by itself bar continuation of proceedings under the Prevention of Money Laundering Act, 2002, because money-laundering is an independent offence tied to the process or activity involving proceeds of crime. The protection available where a person has been finally discharged, acquitted, or otherwise absolved in the predicate offence was not available to a mere approver, since pardon under Section 306 of the Code of Criminal Procedure, 1973 is conditional and not a finding of innocence. The request to invoke Section 482 of the Code for quashing the cognizance and summoning order was therefore rejected.

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Issues: Whether grant of pardon to the applicant in the scheduled offence under the Code of Criminal Procedure, 1973 barred continuation of proceedings under the Prevention of Money Laundering Act, 2002 and justified quashing of the cognizance and summoning order.

Analysis: The applicant had been made an approver and granted pardon in the scheduled offence under Section 306 of the Code of Criminal Procedure, 1973, but he had not been finally discharged, acquitted, or protected by quashing of the scheduled offence. The legal position applied was that money-laundering under Section 3 of the Prevention of Money Laundering Act, 2002 is an independent offence linked to the process or activity connected with proceeds of crime, and proceedings under that Act do not cease merely because pardon is granted in the predicate case. The protection recognised for a person finally absolved in the scheduled offence was held inapplicable to a person who remains an approver, because pardon is conditional and does not amount to an adjudication on innocence. The power under Section 482 of the Code of Criminal Procedure, 1973 was not found fit for exercise to quash the proceedings.

Conclusion: Grant of pardon in the scheduled offence did not bar the PMLA prosecution, and the prayer to quash the cognizance and summoning order was rejected.

Ratio Decidendi: Pardon granted under Section 306 of the Code of Criminal Procedure, 1973 does not amount to final absolution by discharge, acquittal, or quashing of the scheduled offence, and therefore does not by itself terminate independent proceedings under Section 3 of the Prevention of Money Laundering Act, 2002.

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