Money-laundering prosecution can proceed independently of the predicate offence where the complaint shows material of proceeds of crime involvement.

Money-laundering proceedings are independent of the predicate offence, and the accused in the scheduled offence need not be identical to the accused in the PMLA case. At the discharge stage, the court considers only whether the complaint discloses sufficient material to proceed, not a detailed appraisal of evidence. Where the complaint alleges concealment, possession, acquisition, use, projection of proceeds of crime, including fake bills, diversion of funds, and acquisition of property linked to such proceeds, discharge under Section 227 CrPC is not warranted. The prosecution was therefore held to be maintainable.

---

---

Issues: Whether the petitioner was entitled to discharge under Section 227 of the Code of Criminal Procedure, 1973 in the money-laundering prosecution on the ground that the allegations travelled beyond the period of the predicate offence and that he was not arraigned in the scheduled offence.

Analysis: The complaint contained materials indicating the petitioner's involvement in the alleged laundering activity, including his role in preparing fake bills, facilitating diversion of funds, and acquiring properties alleged to be derived from proceeds of crime. The PMLA treats money laundering as a continuing activity and defines proceeds of crime independently of the temporal limits of the predicate offence. The jurisdiction, investigation, complaint, and trial under the PMLA are not dependent upon the outcome or scope of the scheduled offence, and the accused in the predicate offence need not be identical to the accused in the PMLA case. At the stage of discharge, the Court is only concerned with whether sufficient grounds exist to proceed, not with a detailed appreciation of the evidence.

Conclusion: The petitioner was not entitled to discharge, and the prosecution under the PMLA was held to be maintainable.

Ratio Decidendi: Money-laundering proceedings are independent of the predicate offence, and where the complaint discloses material showing involvement in concealment, possession, acquisition, use, or projection of proceeds of crime, discharge under Section 227 of the Code of Criminal Procedure, 1973 is not warranted.

---