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2021 (8) TMI 134 - HC - Money LaunderingMoney Laundering - Bribe - proceeds of crime - seeking to quash the proceedings that has been launched by the Enforcement Directorate for the offence under Section 3 read with 4 of the Prevention of Money Laundering Act 2002 - HELD THAT - In this case the proceeds of crime quantified by the Enforcement Directorate at 25, 00, 000/- being the bribe amount that was received by Dr. S. Murugesan (A1) in his clinic on 07.01.2013 was seized by the CBI and therefore there was no scope for Dr. R. Gunaseelan (A2) to project it as untainted money. Superadded Dr. R. Gunaseelan (A2) is not a co-accused even in the prosecution that has been launched by the CBI in C.C.No.15/2014 against Dr. S. Murugesan (A1) and the representatives of Adhiparasakthi College. The impugned complaint of the Enforcement Directorate shows that Dr.S.Murugesan (A1) had demanded 1 crore from Asan Memorial educational institution to give them permission for starting dental course. In connection with this allegation the CBI registered a case in RC.MA1.2013. A.0004 dated 08.02.2013 and after completing the investigation filed a final report in C.C.No.13/2014 in the IX Additional Special Court for CBI Cases against Dr. S. Murugesan (A1) and Dr. R. Gunaseelan (A2) for the offences under Sections 120-B read with Sections 7 8 12 and 13(2) read with 13(1)(d) of the PC Act. The impugned complaint filed by the Enforcement Directorate is predicated on the bribe amount of 25, 00, 000/- relating to Adhiparasakthi College which cannot form the basis for prosecuting Dr. R. Gunaseelan (A2) - petition allowed.
Issues:
Challenge to prosecution under Prevention of Money Laundering Act, 2002 (PML Act) - Seizure of bribe amount by CBI - Projection of proceeds of crime as untainted property. Analysis: 1. Challenge to Prosecution under PML Act: The petition was filed to quash the prosecution under the PML Act against Dr. R. Gunaseelan (A2). The Enforcement Directorate initiated the case based on the seizure of a bribe amount by the CBI. The petition argued that there was no basis for prosecuting Dr. R. Gunaseelan under the PML Act, as he was not involved in the criminal activity related to the seized amount. 2. Seizure of Bribe Amount by CBI: The CBI seized a bribe amount of ?25,00,000 from the clinic of Dr. S. Murugesan (A1) on 07.01.2013. The Enforcement Directorate determined this amount as proceeds of crime in the complaint. However, Dr. R. Gunaseelan (A2) was not a co-accused in the case registered by the CBI against Dr. S. Murugesan (A1) and others. The petition questioned the basis for prosecuting Dr. R. Gunaseelan under the PML Act for the seized amount. 3. Projection of Proceeds of Crime as Untainted Property: To maintain a prosecution under the PML Act, three essential ingredients are required, including the projection of proceeds of crime as untainted property. In this case, the bribe amount seized by the CBI was considered as proceeds of crime. Since Dr. R. Gunaseelan was not involved in the criminal activity or the projection of the seized amount as untainted, the court found no grounds for his prosecution under the PML Act. 4. Analysis of Additional Allegations: The petition also analyzed allegations related to another case involving Asan Memorial educational institution. The CBI had registered a case against Dr. S. Murugesan and Dr. R. Gunaseelan for demanding a bribe from Asan Memorial. However, the court had previously quashed the prosecution against Dr. R. Gunaseelan in connection with the Asan Memorial case, as he was not involved in the alleged bribe. The Enforcement Directorate's complaint did not establish any proceeds of crime acquired by Dr. R. Gunaseelan in this case. 5. Judicial Decision: The court allowed the Criminal Original Petition and quashed the proceedings against Dr. R. Gunaseelan in C.C.No.1/2019. The court concluded that the basis for prosecuting Dr. R. Gunaseelan under the PML Act was unfounded, as he was not connected to the criminal activities or the projection of proceeds of crime as untainted property.
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