Strict scope of money-laundering inquiry: summons stayed where no nexus to predicate offences or proceeds of crime was shown.

The Prevention of Money-Laundering Act inquiry must remain tied to property derived, directly or indirectly, from criminal activity relating to a scheduled offence, and "proceeds of crime" must be construed strictly. The Section 50 summons power is limited to inquiry into relevant facts concerning such proceeds and persons connected with them. On the materials referred to, no nexus was shown between the petitioners and the predicate offences, no verifiable material indicated knowledge of proceeds of crime, and the summons risked becoming a roving inquiry. Interim protection was therefore granted and operation of the summons was stayed.

---

---

Issues: Whether the summons issued in the money-laundering inquiry could be stayed when the petitioners were not shown as accused or suspects in the predicate offences and no material connected them with any proceeds of crime.

Analysis: The inquiry under the Prevention of Money-Laundering Act, 2002 must remain anchored to property derived or obtained, directly or indirectly, as a result of criminal activity relating to a scheduled offence. The expression "proceeds of crime" is to be construed strictly, and the power to summon under Section 50 is for inquiry into relevant facts concerning such proceeds and the involvement of persons connected with them. On the materials placed, no nexus was shown between the petitioners and the four predicate crime references, no verifiable material indicated their knowledge of proceeds of crime, and the summons appeared to expand the inquiry into a broad roving exercise.

Conclusion: Interim protection was warranted, and the operation of the summons issued to the petitioners was stayed.

---