Predicate offence acquittal ends connected money-laundering proceedings by removing the foundation for prosecution.

Prosecution under the Prevention of Money Laundering Act, 2002 could not continue once the petitioners were acquitted in the scheduled offence, because the predicate offence supplied the foundation for the connected money-laundering case. The trial court had rejected the application under Section 190 read with Section 245(2) CrPC, but the later acquittal in the predicate case and the Supreme Court position relied on by the parties showed that the basis for continuation had fallen away. The revisional challenge succeeded, and the money-laundering proceedings were ordered closed in favour of the petitioners.

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Issues: Whether proceedings under the Prevention of Money Laundering Act, 2002 could continue after the petitioners were acquitted in the scheduled offence.

Analysis: The application under Section 190 read with Section 245(2) of the Code of Criminal Procedure, 1973 had been rejected by the trial court. In view of the acquittal in the predicate offence and the position stated in the later Supreme Court decision relied upon by the parties, the basis for continuing the prosecution under the Prevention of Money Laundering Act, 2002 was treated as absent. The respondent did not dispute this position.

Conclusion: The proceedings under the Prevention of Money Laundering Act, 2002 could not proceed and were ordered to be closed in favour of the petitioners.

Final Conclusion: The revisional challenge succeeded and the connected money-laundering prosecution was brought to an end because the scheduled offence had resulted in acquittal.

Ratio Decidendi: Where the predicate scheduled offence ends in acquittal, the foundation for continuing the connected money-laundering prosecution falls away.

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