Money laundering proceedings may continue despite omission from the predicate charge-sheet where proceeds of crime and concealment are alleged.

Money laundering under the Prevention of Money Laundering Act, 2002 may proceed even where the accused is not named in the scheduled-offence charge-sheet, if the complaint alleges receipt, layering, concealment, acquisition or use of proceeds of crime and the scheduled offence still survives. The offence is treated as independent, but it remains anchored to the existence of a predicate scheduled offence and material showing dealing with proceeds of crime. The proceedings are barred only when the scheduled offence itself is fully extinguished through quashing, discharge or acquittal of all accused. On that basis, the challenge to cognizance and summoning was rejected and the prosecution was held maintainable.

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Issues: Whether prosecution for money laundering under the Prevention of Money Laundering Act, 2002 can continue against a person who is not named in the charge-sheet for the scheduled offence, where the complaint alleges receipt, layering, concealment and utilisation of proceeds of crime.

Analysis: The complaint alleged that the applicant received proceeds of crime, used them for acquisition and dealing with immovable property, and assisted in layering and concealment. The legal position applied was that money laundering is an independent offence, but its foundation remains the existence of a scheduled offence and proceeds of crime. The absence of the applicant's name in the charge-sheet for the scheduled offence did not by itself end the PMLA proceedings, because a person may still be prosecuted for dealing with proceeds of crime if the scheduled offence survives and there is material showing concealment, possession, acquisition, use, projection or claiming as untainted property. The bar arises only where the scheduled offence itself is extinguished in its entirety by quashing, discharge or acquittal of all accused.

Conclusion: The prosecution under the Prevention of Money Laundering Act, 2002 was held maintainable and the challenge to the cognizance and summoning order failed.

Ratio Decidendi: Money laundering is a standalone and independent offence, and a person may be proceeded against for dealing with proceeds of crime even if not charge-sheeted in the scheduled offence, so long as the scheduled offence subsists and there is material showing involvement in concealment, layering, acquisition or use of those proceeds.

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