2022 (3) TMI 196

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....(1) of the Prevention of Money Laundering Act, 2002), Chennai and to quash the same. 2. The brief facts that are required to decide this quash petition are as under: 2.1 One T.D.Naidu approached Raveendranatha Reddy, the then Branch Manager of Andhra Bank, Anna Nagar Branch, for huge loans for starting a Medical College and Hospital sometime in the year 2008. Raveendranatha Reddy, in collusion with T.D.Naidu, in violation of banking norms, appears to have sanctioned a sum of Rs. 41 crores and the account became a Non-Performing Asset (NPA). 2.2 Consequently, on a written complaint given by the General Manager of the Andhra Bank, Chennai, the Central Bureau of Investigation (for brevity "the CBI") registered a case in RC-3(E)/2012 o....

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....e by obtaining huge loans in collusion with Raveendranatha Reddy from Andhra Bank in gross violation of the Rules and had acquired proceeds of crime approximately amounting to Rs. 151 crores, which, he has projected as untainted money by purchasing various properties. 5. As regards the allegation against Raveendranatha Reddy in the complaint, it is found in paragraph no.10.6, which reads as follows: "10.6. Shri N.Raveendranatha reddy (A-6 herein) had dishonestly processed & sanctioned the loans based on forged and fabricated documents in the capacity of the then Branch Manager and Branch Head, Andhra Bank, Anna Nagar Branch, as submitted by Shri T.D.Naidu (A-1 herein), and has actually involved himself and knowingly assisted wit....

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....r indirectly" and "attempts to indulge" would show that all persons who are even remotely involved in this offence are sought to be roped in. An important ingredient of the offence is that these persons must be knowingly or actually involved in any process or activity connected with proceeds of crime and "proceeds of crime" is defined under the Act, by Section 2(1)(u) thereof, to mean any property derived or obtained directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence (which is referred to in our judgment as the predicate offence). Thus, whosoever is involved as aforesaid, in a process or activity connected with "proceeds of crime" as defined, which would include concealing, possessing, acq....