Money-laundering proceedings remain independent of the predicate offence despite discharge, so ECIR and summons may still stand.

Money-laundering proceedings under the Prevention of Money Laundering Act remain independent of the predicate offence, although they still require proceeds of crime to be traceable on the facts. Discharge in the scheduled offence does not automatically nullify the ECIR or summons issued for inquiry under Section 50. The validity of such action depends on the stage of the matter, the material collected, and whether the discharge in the predicate case has been finally tested. On those principles, the Court declined to quash the ECIR or summons and treated the proceedings as maintainable notwithstanding the discharge.

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Issues: Whether discharge in the predicate offence required quashing of the ECIR and summons issued under the Prevention of Money Laundering Act, 2002.

Analysis: The issue turned on the relationship between the scheduled offence and proceedings under the Prevention of Money Laundering Act, 2002. The Court reiterated that the offence of money-laundering is an independent offence, though its source is a scheduled offence and the existence of proceeds of crime remains essential. A discharge in the predicate case does not, by itself, automatically extinguish the ECIR or nullify summons issued for inquiry under Section 50. The validity of such proceedings depends on the stage of the matter, the material collected, the status of the discharge challenge, and whether proceeds of crime are traceable on the facts of the case.

Conclusion: The discharge in the predicate offence did not warrant quashing of the ECIR or the summons, and the petition failed.

Final Conclusion: Proceedings under the Act were held to be maintainable notwithstanding the petitioner's discharge in the predicate case, and the Court declined to interfere.

Ratio Decidendi: Money-laundering proceedings are not automatically vitiated by discharge in the scheduled offence; they may continue where the statutory elements of proceeds of crime and inquiry under the Act remain independently justiciable.

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