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Issues: Whether proceedings under the Prevention of Money Laundering Act, 2002 can survive after the accused in the predicate offence has been finally acquitted, and whether the complaint and ECIR were liable to be quashed.
Analysis: The governing principle applied was that the offence under section 3 of the Prevention of Money Laundering Act, 2002 is dependent on the existence of a scheduled offence and the property allegedly derived from criminal activity relating to that offence. Where the person concerned is finally discharged, acquitted, or the criminal case for the scheduled offence is quashed, the substratum for the money-laundering prosecution ceases to exist. The Court applied this principle to the present case, noting that the co-accused had been acquitted in the predicate offence and that the acquittal had attained finality.
Conclusion: The PMLA complaint and consequential proceedings could not survive, and the ECIR and connected proceedings were quashed in favour of the petitioner.
Final Conclusion: The judgment holds that a final acquittal in the scheduled offence destroys the basis for money-laundering proceedings founded on that offence, subject to revival only if the legal position changes on further proceedings.
Ratio Decidendi: Proceedings for money-laundering cannot continue once the scheduled offence has ended in final acquittal, discharge, or quashing, because the offence under section 3 of the Prevention of Money Laundering Act, 2002 is contingent on a subsisting predicate offence.
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