2023 (8) TMI 1408

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....iginal Complaint No.1996 of 2023 dt 08.06.2023 before Respondent No.4 on the basis of ECIR/NKSZO/27/2022, 31.05.2022 even after the quash of Cr.No.85 of 2021 dt 03.03.2021 Mangalagiri P.S under Sections 420, 406, 120B R/w 34 of IPC and Cr,No,346 of 2021 dt 19.06.2021 Mangalagiri P.S under Sections 120B, 409, 471, 420 and 506 of IPC Predicate Offences by this Honble Court as illegal, arbitrary, violative of Articles 14, 19 and 21 of the Constitution of India unjustified contrary to Prevention of Money laundering Act, 2002 an abuse of authority and consequently to set aside the Provisional Attachment Order No.01/2023 dt 10.05.2023 and Original Complaint No.1996 of 2023 dt 08.06.2023 issued and pending before the Respondent No 3 and 4 respecti....

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....eezed. He further submitted that, in spite of quashing the scheduled offences in Crlp.No.2341/2023 and W.P.No.12137/2021 against the accused, the authorities are proceeding with the enquiry without any authority and jurisdiction which is contrary to the settled principles of law and PMLA Act, 2002. In support of his contentions, learned Senior counsel for the petitioner relied on the judgment passed by the Division Bench of High Court for Telangana in W.A.No.107/2023 following the judgment in Vijaya Madanlal Choudhary Vs Union of India (2022) SCC Online SC 929 Learned Senior Counsel for the petitioner further submits that, the judgment passed in W.A.No.107/2023 squarely applicable to the facts of the present case and draw the attention o....

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....ties have no jurisdiction to entertain and proceed further, and adjudication before the original authority is of no consequence and nothing but a futile exercise. As such the petitioner need not file any written version and prayed to pass appropriate orders in that regard. 6. Perused the record. 7. It is not in dispute that predicative offences registered against the accused have been quashed by this Court in Crlp.No.2341/2023 and W.P.No. 12137/2021. The Division Bench of High Court of Telangana while dealing with similar case in W.A.No.107/2023, has duly taken into consideration the judgment of the Hon'ble Apex Court in Vijaya Madanlal Choudhary Vs Union of India which reads as follows: "...24. We may now deal with the decision of the ....

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....e unless the concerned tax legislation prescribes such violation as an offence and such offence is included in the Schedule of the 2002 Act. For being regarded as proceeds of crime, the property associated with the scheduled offence must have been derived or obtained by a person "as a result of criminal activity relating to the concerned scheduled offence. This distinction must be borne in mind while reckoning any property referred to in the scheduled offence as proceeds of crime for the purpose of the 2002 Act. Dealing with proceeds of crime by war of any process or activity constitutes offence of money-laundering under Section 3 of the Act. 28. Thus, according to Supreme Court, the offence under Section 3 of PMLA is dependent on illega....