TaxTMI 
TaxTMI 
2021 (2) TMI 1185
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....fore the Principal Sessions Court, Special Court for PMLA cases, Chennai, in the prosecution launched under the Prevention of Money Laundering Act, 2002 for short ''PMLA''. The issue involved in both the petitions is one and the same. Hence, both the petitions are decided by this common. 3. We have heard Mr.Abdul Saleem, learned counsel for the petitioner in Crl.O.P.No.24200 of 2017 and Mr.Elambharathi, learned counsel for the petitioner in Cr.O.P.No.24202 of 2017 and Mr.N.Ramesh, learned Special Public Prosecutor appearing for the respondent and we have also perused the materials on record. 4. Learned counsel for the petitioners submitted that the petitioners seek to quash the case in C.C.No.2 of 2017 on the file of the Principal Sessions Court, Special Court for PMLA 2002, Chennai on the following grounds: (i) On 08.12.2016 and 09.12.2016, the Income Tax Authorities Chennai conducted search in the residential office premises of Shri S.Sekar reddy and others and seized currencies and gold. The Income Tax Department informed the CBI about the seizure of currencies and gold. The CBI arrested the petitioners in Crime No.RC.MA1 2016 A0040 dated 19.12.2016 for ....
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.... same as untainted money. (iii) While granting bail in the schedule Offence, the learned Special Judge for CBI has clearly observed that there is no material to connect the petitioner with the offence and no overt or covert act of omission or commission has been attributed to him. Since no specific act has been attributed to the petitioner in the schedule Offence, no 'proceeds of crime' connected with the said schedule Offence has been identified to be in possession of petitioner. (iv) No person can be either prosecuted or proceeded against for the contravention of the PMLA unless the "proceeds of crime" are identified and relatable only to the criminal activity concerning a 'schedule Offence'. Indubitably, the respondents have miserably failed to even point out a remote link or connection of the money sought to be attached is the "proceeds of crime" as contemplated under the PMLA. Thus, the entire proceedings are without any substance whatsoever. 5. The learned counsel for the petitioners in order to support his case relied upon the following cases in ''Umesh Badrinarayan Bangur versus K.Nageshwar Rao'' , ''Nikesh Tarachand Shah Vs. Union of India ....
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....d other accused persons. In the course of search, they seized following currencies and gold: S. No. Name of the premises Cash (in Rs.) Gold (in Kg) 1. Residential premises of M. Premkumar, New No. 22, Old No.20, Kikpauk Garden Colony, 1st Cross Street, Kilapuk, Chennai 2,00,00,000/- 30 (valued at Rs. 8,56,99,350/-) 2. 26/14, Yogambal Street, T. Nagar, Chennai 14,94,89,000/- 3 (valued at Rs. 86,13,000/-) 3. No.36, Sudhama Building, Flat No.1, 1st Floor, Rear Block, Vijayaragava Road, T.Nagar, Chennai 88,55,34,000/- -- 4. No.47, 49, VBC Solitaire, Bazhullah Road, T.Nagar, Chennai 1,48,66,800/- 1.5 (valued at 42,54,000) 5. Room No.603, 606, the Residency, G.N.Chetty Road, T.Nagar, Chennai - 93.995 (valued at Rs. 26,86,40,961/-) Total 106,98,89,800/- 128.495 (valued at Rs. 36,72,07,311/- After the search, the Income Tax Authorities informed the CBI Authorities. The CBI Authorities enquired and registered FIR in Crime No. RC.MA1 2016 A0040 under Section 120(b) r/w 409, 420 IPC and 13(2), r/w 13(1) (C ) and 13(1) (d) of Prevention of Corruption Act. Apart from this FIR, the CBI registered two other FIRs a....
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....Sekar Reddy (A-1) is the lion partner in the SRS Mining, who stationed at Chennai, had managed to receive daily collection of money pertaining to SRS Mining sand business collected from various places. Upon receiving such amounts, Shri Sekar Reddy used to divert the amounts as per his plan and more particularly in the instant case during the demonization period, he had managed and arranged to convert the old currency into the new currency as explained in the foregoing paragraphs. His partners S/Shri S. Ramachandran and K. Rathinam were admittedly used to arrange through their men in transporting the said daily collection of SRS Mining to reach Shri Sekar Reddy at Chennai. Thus in getting such conversations of demonitised notes into new currency and into 1kg gold bars, Shri J .Sekar Reddy had committed criminal offences specified under section 120B r/w.409 & 420 IPC 1860 r/w. section 13(2), 13(1)(c) & (d) of Prevention of Corruption Act, 1988; that out of these section 120B & 420 IPC, 1860 and Section 13(2), 13(1) (c ) & (d) of Prevention of Corruption Act, 1988; are schedule offences under PMLA as envisaged in section 2(1) (x) & 2 (1)(y) of PMLA that from the said criminal activiti....
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.... cannot be accepted. We have considered the reliance placed by the learned counsel for the petitioners. The Principle stated therein is unhelpful to support the case of the petitioners, as our case is factually different. Because, from a reading of the provisions in the PMLA that though the commission of schedule offence is a fundamental pre-condition for initiating proceedings under the Act, ''the offence of money laundering is independent of the schedule offences'', the scheme of the PMLA indicates that it deals only with laundering of money acquired by committing the schedule offence. In other words, the PMLA deals only with the process or activity with the ''Proceeds of the Crime'' including its concealment, possession, acquisition or use. So that in the Act under Section 44 explanation (i) clearly indicated that the Special Court while dealing with the offence under the Act shall not be dependent upon any orders passed, in respect of the schedule offence. 13. Another argument of the learned counsel for the petitioners that the observation of the trial Court, while granting bail, that there is no material to connect the petitioner with the off....