TaxTMI 
TaxTMI 
2023 (11) TMI 1083
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....well as learned counsel for the Enforcement Directorate. 2. The learned counsel for the petitioner submits that the present quashing application has been filed seeking quashing of the order dated 24.08.2018 passed by learned Session Judge, Patna in Special Trial No.(PMLA) 03 of 2018 (Ref: ECIR No. PTZ0/07/2014) dated 07.01.2014 by which the learned Session Judge, Patna has taken cognizance of offence under Section 4 of the Prevention of Money Laundering Act and has issued summons to the petitioner for his appearance. 3. The learned counsel for the petitioner submits that the issue which arises for consideration in the present case is whether the ECIR instituted under the Prevention of Money Laundering Act (hereinafter referred as the ....
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....submits that intrinsic linkage of the scheduled offence with the offence of Money Laundering is also found in the explanation to the definition of 'Proceed of Crime' under Section 2U of the Act, which clarifies that it would include property not only derived or obtained from the scheduled offence but also any property which may directly or indirectly be derived or obtained as a result of any criminal activity relatable to the scheduled offence. 7. The learned counsel for the petitioner next submits that the Hon'ble Supreme Court has made it clear that while the offence of Money Laundering is an independent offence, it is still dependent on the underline predicate offence to the extent of the proceed of crime having been derived or obtain....
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....IR bearing No.PTZ0/07/2014 dated 07.01.2014 was instituted against the petitioner and others by ED, Patna Zonal Office as offences under Sections 302, 420, 414, 467, 471 and 120B of the I.P.C. being scheduled offences, further it is alleged that petitioner has acquired movable and immovable properties as detailed in the complaint, the total value of the property acquired in the name of the petitioner is Rs. 2,16,18,059/- in the name of his wife the property is worth of Rs. 1,64,75,500/- both totaling Rs. 3,80,93,559/-, further bank account operated by the petitioner had a deposit of Rs. 13,59,443/-, LIC policies worth Rs. 29,08,988/- and thus total properties were valued at Rs. 4,23,61,990/-. 10. The learned counsel for the petitioner fu....
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....rded as proceeds of crime. The authorities under the 2002 Act cannot resort to action against any person for money-laundering on an assumption that the property recovered by them must be proceeds of crime and that a scheduled offence has been committed, unless the same is registered with the jurisdictional police or pending injury by way of complaint before the competent forum. For, the expression "derived or obtained" is indicative of criminal activity relating to a scheduled offence already accomplished. Similarly, in the event the person named in the criminal activity relating to a scheduled offence is finally absolved by a Court of competent jurisdiction owing to an order of discharge, acquittal or because of quashing of the criminal ca....
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....nd possessed by him, such a property by no stretch of imagination can be termed as crime property and ex-consequenti proceeds of crime within the meaning of Section 2(1)(u) as it stands today. On the other hand, in the trial in connection with the scheduled offence, the Court would be obliged to direct return of such property as belonging to him. It would be then paradoxical to still regard such property as proceeds of crime despite such adjudication by a Court of competent jurisdiction. It is well within the jurisdiction of the concerned Court trying the scheduled offence to pronounce on that matter." 13. The learned counsel for the petitioner thus submits that the Hon'ble Supreme Court has clearly observed that such property which is d....