The HC, applying the binding three-Judge precedent, held that...

The HC, applying the binding three-Judge precedent, held that prosecution under Section 3 of the 2002 Act is contingent on the existence of a registered or pending scheduled-offence; a final discharge or quashing of the predicate offence precludes maintainability of a money-laundering prosecution. The Petitioners, having been finally discharged by the trial court from the predicate offence by order dated 31 July 2021, cannot be prosecuted under the 2002 Act in respect of the same property. Consequently, the ECIR and the ensuing charge-sheet filed against the Petitioners by the respondent are quashed and set aside. The petition is allowed and proceedings under the 2002 Act against the Petitioners are dismissed.