2025 (1) TMI 739 - SCH - Money Laundering

SC Allows ED to Continue PMLA Proceedings, Overturns HC Order; Conviction in Case 188/2013 Influences Decision.

The SC addressed the legal proceedings involving the respondent-accused linked to three FIRs by the Karnataka Lokayukta. The respondent was acquitted in ... Money Laundering - respondent-accused is already convicted by the concerned Court and an appeal against the same is pending before the High Court - HELD THAT:- The High Court has committed an error in quashing the ECIR proceedings initiated by the petitioner(s) under the PMLA Act, on the ground that the respondentaccused was acquitted in the predicate cases ignoring the fact that the respondent-accused was already convicted by the concerned Court in Special C.C. No. 188 of 2013 vide the order dated 29.07.2019. The matter deserves consideration. Hence, leave granted. In the Supreme Court judgment, Justices Bela M. Trivedi and Satish Chandra Sharma addressed the legal proceedings concerning the respondent-accused linked to three FIRs filed by the Karnataka Lokayukta, resulting in Special C.C. Nos. 188, 189, and 190/2013. The respondent was acquitted in cases 189/2013 and 190/2013, with pending appeals in the High Court. However, the respondent was convicted in case 188/2013, with an appeal still pending.The Supreme Court found that the High Court erred in quashing the ECIR proceedings under the PMLA Act, as it overlooked the respondent's conviction in Special C.C. No. 188/2013. Consequently, the Supreme Court granted leave for further consideration and stayed the High Court's order pending appeal. The Enforcement Directorate (E.D.) may continue proceedings against the respondent in accordance with the law.The Court emphasized that the outcomes of the pending High Court appeals should be reported back to the Supreme Court. Additionally, the respondent retains the right to legal recourse if any coercive actions are proposed. The hearing of the appeal is to be expedited.