PMLA quashing challenge fails where investigation material links the accused to proceeds of crime and statutory presumptions apply

A prosecution complaint under the Prevention of Money Laundering Act could not be quashed at the Section 482 CrPC stage where investigation material linked the applicant to acquisition and transfer of immovable property allegedly derived from predicate fraud. Section 3 was treated as covering direct or indirect involvement, concealment, possession, acquisition, or use of proceeds of crime, and the presumptions under Sections 22 and 24 were noted as operating unless rebutted. On the material then available, the applicant could not be exonerated in quashing proceedings, and the prosecution was held maintainable.

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Issues: Whether the prosecution complaint under the Prevention of Money Laundering Act, 2002 could be quashed in exercise of inherent powers under Section 482 of the Code of Criminal Procedure, 1973 on the ground that the applicant had no prima facie involvement in the alleged laundering of proceeds of crime.

Analysis: The material collected during investigation indicated that the proceeds generated from the predicate fraud were used for acquisition and transfer of immovable property and that the applicant was linked to the impugned transaction. The statutory definition of money laundering under Section 3 of the Prevention of Money Laundering Act, 2002 covers direct or indirect assistance, involvement, concealment, possession, acquisition, or use of proceeds of crime. The Court also noted the statutory presumptions under Sections 22 and 24 of the Act, under which the property and the money transaction could be presumed to be connected with the accused unless the contrary is proved. On the material available at that stage, the applicant could not be exonerated in quashing proceedings.

Conclusion: The request for quashing was rejected and the prosecution was held to be maintainable against the applicant.

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