PMLA attachment can survive where the scheduled offence is still pending against a principal accused and proceeds of crime are involved.

Provisional attachment under the PMLA is said to survive where the scheduled offence proceedings are not finally terminated against all concerned persons. The text explains that money-laundering action generally cannot continue once the person is finally absolved in the predicate offence by discharge, acquittal, or quashing, but that protection did not apply here because all appellants had not been finally absolved and a principal accused still faced pending scheduled offence proceedings. It further states that PMLA attachment is not limited only to the named accused in the scheduled offence and may continue against a person connected with the proceeds of crime. On that basis, the attachment was upheld and the appeals were rejected.

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Issues: Whether the confirmed provisional attachment under the Prevention of Money Laundering Act could survive when some accused persons had been discharged in the PMLA prosecutions and parts of the scheduled offence proceedings had been quashed.

Analysis: The attached properties were assailed on the ground that the predicate offence had been quashed or that the appellants stood discharged in the PMLA cases. The governing principle applied was that money-laundering action cannot continue once the person concerned is finally absolved in the scheduled offence by discharge, acquittal, or quashing. On the facts, however, the record showed that all appellants had not been finally absolved in the scheduled offence. In particular, a principal accused remained chargeable and the scheduled offence proceedings against him were still pending. The Tribunal also noted that PMLA attachment is not confined only to the named accused in the scheduled offence and may continue against a person involved in the proceeds of crime.

Conclusion: The provisional attachment did not fail on the pleaded ground of discharge or quashing, and the appeals were rejected.

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