Money Laundering Case Dismissed Due to Lack of Merit; No Charges Without Active Police Case or Scheduled Offence.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Money laundering case involving proceeds of crime from scheduled offence of conspiracy to siphon crores of rupees deposited by innocent bank depositors. Key points: Offence u/s 3 of PMLA requires illegal gain of property from a scheduled offence, which is a prerequisite for prosecution. Prosecution cannot be initiated on notional basis or assumption of scheduled offence without it being registered with police or pending inquiry/trial. If accused is discharged/acquitted of scheduled offence or case quashed, no money laundering offence can be made out. Subsequent FIR cannot be subsumed into existing ECIR without satisfying requirements. ECIR based on scheduled offence of cheating under IPC. Well-settled that money laundering offence depends o.........