Prima facie cheating and conspiracy can sustain money-laundering proceedings where wrongful gain and loss are alleged.

A prima facie scheduled offence can support money-laundering proceedings where the record shows dishonest inducement, wrongful gain to one party, wrongful loss to another, and concerted conduct in furtherance of the alleged scheme. The Tribunal examined allegations that work orders and a call-monitoring arrangement were used to intercept employees' calls without lawful authority, and treated the decisive factor as the specific allegation of cheating and criminal conspiracy rather than a general privacy complaint or the bail order relied on by the appellant. On that basis, the predicate offence was found prima facie made out, and the provisional attachment was upheld.

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Issues: (i) Whether the material on record disclosed a prima facie case of cheating and criminal conspiracy so as to sustain the predicate offence and the proceedings under the Prevention of Money Laundering Act, 2002.

Analysis: The alleged work orders and call-monitoring arrangement were examined in the light of the FIR allegations that the arrangement was used to intercept employees' calls without lawful authority, with top officials of the institution allegedly acting in concert with the appellant. The decisive consideration was not merely the privacy violation or the bail order relied upon by the appellant, but the specific allegation of wrongful gain to the appellant and corresponding wrongful loss to the institution, coupled with the allegation of dishonest inducement and connivance. On that basis, the ingredients of cheating under the Penal Code and the connected predicate offence were found to be prima facie made out. Once a prima facie scheduled offence was disclosed, the foundation for invoking the money-laundering provisions also survived.

Conclusion: The issue was decided against the appellant and in favour of the respondent; the Tribunal held that a prima facie case under the predicate offence and the money-laundering provisions was made out.

Final Conclusion: The challenge to the provisional attachment failed, and the Tribunal found no ground to interfere with the impugned order.

Ratio Decidendi: Where the FIR and surrounding material disclose dishonest inducement, wrongful gain to one party, wrongful loss to another, and concerted conduct amounting to a prima facie scheduled offence, proceedings under the Prevention of Money Laundering Act can be sustained on that foundation.

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