https://www.taxtmi.com/caselaws?id=313513 The HC granted interim stay of summons issued to District Collectors in money laundering proceedings. The court held that PMLA authorities cannot prosecute on notional basis or assumption that scheduled offence was committed unless registered with jurisdictional police and pending enquiry/trial. Following SC precedent in Vijay Madanlal Choudhary, the court ruled that proceeds of crime under Section 2(1)(u) PMLA must exist before authorities can initiate prosecution. Mere existence of undisclosed income cannot establish proceeds of crime unless property derived from criminal activity relating to scheduled offence. The court found the enquiry contemplated by impugned summons exceeded respondent's jurisdiction, being merely an attempt to investigate possibility of identifying proceeds of crime from unregistered criminal activity. en-us Tue, 28 Nov 2023 00:00:00 +0530 Thu, 18 Apr 2024 16:46:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=313513 The HC granted interim stay of summons issued to District Collectors in money laundering proceedings. The court held that PMLA authorities cannot prosecute on notional basis or assumption that scheduled offence was committed unless registered with jurisdictional police and pending enquiry/trial. Following SC precedent in Vijay Madanlal Choudhary, the court ruled that proceeds of crime under Section 2(1)(u) PMLA must exist before authorities can initiate prosecution. Mere existence of undisclosed income cannot establish proceeds of crime unless property derived from criminal activity relating to scheduled offence. The court found the enquiry contemplated by impugned summons exceeded respondent's jurisdiction, being merely an attempt to investigate possibility of identifying proceeds of crime from unregistered criminal activity. Case-Laws Money Laundering Tue, 28 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=313513