2024 (1) TMI 1411

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.... in the prayer portion of the writ petition in light of the judgment of Hon'ble the Supreme Court in the case of Vijay Madanlal Choudhary & Ors. Vs. Union of India & Ors . The applicant had earlier filed a writ petition W.P. (Crl.) No. 15/2022. The other petitioner, M/S Khedi Trade & Development Agency has been impleaded in the writ petition as per order dated 15.12.2021. The applicant have filed the writ petition challenging the summons issued under Sub-Section (2) and (3) of Section 50 of the Prevention of Money Laundering Act 2002 (PMLA Act for short) dated 18.11.2021. The applicant also challenged the constitutional vires of Section 50 and sought declaration of the same as being violative of Article 20(3) of the Constitution read with A....

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....e PMLA, and includes over 150 offences under the laws such as the Indian Penal Code, 1860; the NDPS Act, 1985; Unlawful Activities Prevention Act, 1967; Arms Act, 1959, Explosive Substances Act, 1908. 9. Therefore, the offence of money laundering under the PMLA is inextricably linked to offences under the other laws, which are predicate offences (scheduled offences), and the offence of money laundering is, in that sense, not a stand-alone offence." 6. It is also submitted that, the respondents by relying on various judgments of High Courts, has submitted that the offence of money laundering is standalone offence and does not depend on the outcome of the investigation in the scheduled offence. 7. It is further submitted on beh....

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....eduled offence. It is concerning the process or activity connected with such property, which constitutes the offence of money-laundering. The Authorities under the 2002 Act can not prosecute any person on notional basis or on the assumption that a scheduled offence has been committed, unless it is so registered with the jurisdictional police and/or pending enquiry/trial including by way of criminal complaint before the competent forum. If the person is finally discharged/acquitted of the scheduled offence or the criminal case against him is quashed by the Court of competent jurisdiction, there can be no offence of Money-Laundering against him or any one claiming such property being the property linked to stated schedule offence through him.....