TaxTMI 
TaxTMI 
2022 (11) TMI 53
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....opal Vasudevan, Adv. Mr. G.R. Vikas, Adv. Mr. Subramanya Bhann, Adv. Mr. P.V.K. Devendran, Adv. Mr. Rohan, Adv. Mr. P. Soma Sundaram, AOR JUDGMENT Uday Umesh Lalit , CJI 1. Leave granted. 2. This appeal challenges the final judgment and order dated 1.3.2021 passed by the High Court of Judicature at Madras in Writ Petition No. 25670/2019. 3. The aforestated writ petition was filed by the respondent herein seeking quashing of proceedings initiated against him under the provisions of the Prevention of Money Laundering Act, 2002 ("PML Act", for short). 4. The basic facts which led to the filing of said writ petition stand captured in paragraphs 2.1 to 2.3 of the judgment under appeal, as under: - "2.1 One Andasu Ravin....
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....he Enforcement Directorate registered a case in E.C.I.R.No.13 of 2016 and after completing the investigation, filed a complaint in C.C.No.60 of 2018 against Everonn Education Limited and three others including Padmanabhan Kishore (A2) for the offences under Section 3 r/w 4 of the PML Act, for quashing which, Padmanabhan Kishore (A2) is before this Court." 5. As is evident from the quoted portion, the respondent had allegedly handed over a sum of Rs.50,00,000/- (Rupees fifty lakhs only) to a public servant, which transaction and the surrounding circumstances were projected in FIR dated 29.8.2011, leading to registration of crime under Section 120B, Indian Penal Code, 1860 ("IPC", for short) and Sections 7, 12, 13(1)(d) read with Section 1....
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.... in our considered opinion, is misconceived. 7. The High Court thus allowed the writ petition and quashed the proceedings in PML Act against the respondent, which decision is presently under challenge before us. 8. We have heard Mr. Balbir Singh, learned Additional Solicitor General of India in support of appeal and Mr. S. Nagamuthu, learned senior counsel for the respondent. 9. The definition of proceeds of crime, as appearing in Section 2(1)(u) of the PML Act is as under: - "2. Definitions. - (1) In this Act, unless the context otherwise requires,- xxx xxx xxx (u) "proceeds of crime" means any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating t....
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....se; or (e) projecting as untainted property; or (f) claiming as untainted property, in any manner whatsoever; (ii) the process or activity connected with proceeds of crime is a continuing activity and continues till such time a person is directly or indirectly enjoying the proceeds of crime by its concealment or possession or acquisition or use or projecting it as untainted property or claiming it as untainted property in any manner whatsoever. 4. Punishment for money-laundering.- Whoever commits the offence of money-laundering shall be punishable with rigorous imprisonment for a term which shall not be less than three years but which may extend to seven years and shall also be liable to fine: ....
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....n the instant matter is not with regard to his involvement in the offence punishable under the PC Act, but raises a question whether the respondent can be proceeded against under the provisions of the PML Act. 13. The definition of "proceeds of crime" in PML Act, inter alia, means any property derived or obtained by any person as a result of criminal activity relating to a scheduled offence. The offences punishable under Sections 7, 12 and 13 are scheduled offences, as is evident from paragraph 8 of Part-A of the Schedule to the PML Act. Any property thus derived as a result of criminal activity relating to offence mentioned in said paragraph 8 of Part-A of the Schedule would certainly be "proceeds of crime". 14. The further question ....