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Issues: Whether the petitioner was entitled to discharge in the prosecution under the Prevention of Money-Laundering Act, 2002 on the ground that the complaint disclosed no prima facie material showing his involvement in the alleged laundering activity.
Analysis: The complaint contained specific assertions that the petitioner was one of the trustees, had participated in the formation and functioning of the trust, had entered into agreements and lease arrangements in that capacity, and had knowingly assisted the principal accused in acquisition, possession, use and projection of the proceeds of crime as untainted property. The materials relied on by the prosecution were sufficient at the stage of discharge to show a prima facie case, and the Court declined to reappreciate the evidentiary sufficiency as if conducting a trial. The Court also noted the wide ambit of money-laundering under Section 3, the statutory presumption under Section 24, and that a trust can fall within the definition of "person". The plea of unilateral resignation was rejected for want of supporting material and in view of the statutory regime governing trusteeship.
Conclusion: The discharge challenge failed, and the rejection of discharge was upheld.
Ratio Decidendi: In proceedings under the Prevention of Money-Laundering Act, 2002, the Court at the discharge stage only examines whether the complaint discloses prima facie material of involvement in laundering activity; where the complaint alleges knowing assistance, possession, use, or projection of proceeds of crime, the accused is not entitled to discharge merely by disputing the merits or by asserting an unsupported cessation of office.
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