TaxTMI 
TaxTMI 
2023 (3) TMI 133
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....ferred to as "the PMLA"), which is punishable under Section 4 of the PMLA. 4. Learned counsel for the applicant has submitted that the offence of money laundering as defined under Section 3 of the PMLA specifically posits that whosoever 'directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of offence of money laundering. 5. Learned counsel has further submitted that the definition of 'proceeds of crime' is provided under Section 2 (u) of the Act which means "any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence or the nature of any such property". 6. Therefore, the commission of the scheduled/predicate offence by way of which 'any property derived or obtained, directly or indirectly is a mandatory requirement for a 'property' to become 'proceeds of crime'. In support of his argument, learned counsel for the applicant has referred p....
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....against 22 persons was registered under Sections 143, 147, 153B r/w 149 of the Indian Penal Code, 1860; Section 5 (1) (a) r/w 25 (1) (a) of the Arms Act, 1959; Section 4 & 5 of the Explosives Substances Act, 1908 and Section 18 of the Unlawful Activities (Prevention) Act, 1967. The said case emanating from the FIR stands closed up to the Hon'ble Supreme Court vide its orders dated 13.04.2017 and 04.07.2017 in SLP (Criminal) Nos. 4511- 4513 of 2017 and 2875 of 2017 respectively. Further, FIR No. 199/2020 dated 07.10.2020 [2nd Predicate Offence'], has been registered U/s 153A/295A/124A of the Indian Penal Code, 1860; 17 and 18 of UAPA and 65/72/76 of the Information Technology Act, 2002. FIR No.04/2021 dated 16.02.2021 [3rd Predicate Offence'] has been registered U/s 120B and 121A of the IPC; Sections 13, 16, 18 and 20 of UAPA; Section 3, 4, and 5 of the Explosives Substances Act and Section 3 and 25 of the Arms Act against Anshad Badharudeen and Firoz Khan. 8. Learned counsel for the applicant has reiterated that the present applicant is not an accused in any of the aforesaid three predicate offences. However, he has been arrested on 10.03.2022 pursuant to the ECIR in....
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....e Copies of the minutes of the Board meeting dated 30.07.2018 and 01.07.2020 of Company 'Munnar Villa Vista Private Limited' is annexed herewith and marked as ANNEXURE A-7 [COLLY]; V. It is submitted that a bare reading of the table at Para 8 of the Supplementary Complaint establishes the following: a) Monies amounting to Rs.33,72,043/- have been transferred from 11.07.2012 to 10.06.2020 to Rehab India Foundation, an NGO; b) These are legitimate transactions through RTGS/NEFT, emanating from the coffers of the Applicant/Accused; c) There is no averment that the said monies have been derived from the commission of any predicate/scheduled offence, let alone 1st Predicate Offence; d) In any case the commission of the 2nd and 3rd so called Predicate Offence took place after the transactions of the Applicant/Accused dated 11.07.2012 to 10.06.2020, therefore, the 2nd and 3 'predicate offences cannot per force lead to 'proceeds of crime'. VI. Furthermore, a reading of Paras 8.3 to 8.7 nowhere delineates, how the monies transferred by the Applicant/Accused emanate out of any Predicate Offence; VII. The Applicant/Acc....
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....on, the fact emerged that the funds amounting to Rs.1.36 Crore, raised/collected abroad by the office bearers/ members/ activists of PFI, CFI and their related organizations, were routed to the Bank Accounts of K.A. Rauf Sherif, the National General Secretary of CFI. Further, the investigation against PFI has so far revealed that more than Rs.100 Crore have been deposited in the accounts of PFI and its related entities over the years. It has come into the notice of the Investigating Agency that foreign funds have been remitted to India through hawala/ underground channels and through remittance sent to the accounts of members/ activists/office bearers of PFI/CFI and other related organizations. 14. Initially, active participation of five accused persons have been noticed thorough reliable evidences and materials whose names have been indicated in the first complaint but after further investigation, name of the present applicant came into the notice, therefore, in the supplementary complaint, the applicant has been made accused. Pursuant to the exercise being undertaken through further investigation, role of the present applicant, who is a PFI member based in Kerala and Abu Dhabi....
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....posal to buy a plot was a mere afterthought and pretext used by the applicant to conceal the true nature of movement of funds. Relevant extracts of the documents have been shown in the complaint. 16. Therefore, Sri Srivastava has stated that role of the present applicant is so serious and he being a big businessman based in Abu Dhabi, if released on bail, may abscond or may influence the trial proceedings as the trial is pending consideration before the learned trial court where the charges have been framed. He has also submitted that the role of the present applicant is altogether different from that of co-accused Sidhique Kappan, who has been granted bail by this Court on 23.12.2022 inasmuch as the role assigned to Sidhique Kappan is in respect of hatching criminal conspiracy with K.A. Rauf Sherif. Except the allegation that Rs.5,000/- were transferred in the Bank account of co-accused Atikur Rahman, there is no other transaction either in the Bank account of Sidhique Kappan or in the Bank account of co-accused. 17. Sri Srivastava has also submitted that if the bail of the present applicant is considered, satisfaction in respect of Section 45 of PMLA may be given inasmuch a....
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...., it is a totally independent investigation as defined and contemplated under Section 2(na), of an offence committed under Section 3 of the said Act. 30. PMLA is a special statute enacted with a specific object i.e. to track and investigate cases of money-laundering. Therefore, after lodgment of Predicate/Scheduled Offence, its ultimate result will not have any bearing on the lodgment/investigation of a crime under the PMLA and the offence under the PMLA will survive and stand alone on its own. A Predicate/Scheduled Offence is necessary only for registration of crime/launching prosecution under PMLA and once a crime is registered under the PMLA, then the ED has to take it to its logical end, as contemplated under Section 44 of the Act. 31. The PMLA itself, does not provide for any contingency like the case in hand and argued by the learned counsel for the Applicants. Section 44(b) only provides for filing of a complaint or submission of a closure report by the Investigating Agency under PMLA and none else. 32. If the contention of the learned counsel for the Applicants that, once the foundation is removed, the structure/work thereon falls is accepted, the....
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....annot be said to be illegal. Para-271 in re; Vijay Madanlal Choudhary (supra) is being reproduced herein below:- "271. As mentioned earlier, the rudimentary understanding of 'money-laundering' is that there are three generally accepted stages to money-laundering, they are: (a) Placement : which is to move the funds from direct association of the crime. (b) Layering : which is disguising the trail to foil pursuit. (c) Integration : which is making the money available to the criminal from what seem to be legitimate sources." 22. Notably, the Apex Court in re; Vijay Madanlal Choudhary (supra) has held that provision in the form of Section 45 of PMLA, as applicable post amendment of 2018, is reasonable and has direct nexus with the purposes and objects sought to be achieved by the PMLA to combat the menace of money laundering having transnational consequences including impacting the financial systems and sovereignty and integrity of the country. While granting bail of an accused person, twin conditions of Section 45 of the PMLA will have to be adhered to. 23. For the convenience, Section 45 of the PMLA is being reproduced hereunder:- "....