2023 (1) TMI 1410 - HC - Money Laundering

Rejection of application filed u/s 190 read with Section 245(2) of the Code of Criminal Procedure, 1973 - scheduled offence or not - proceeds of crime - The learned counsel for the accused Nos. 1 and 2/ petitioners submitted that in view of the Judgment rendered by Hon'ble Apex Court in Vijay Madanlal Choudhary and others v. Union of India and others 2022 (7) TMI 1316 - SUPREME COURT , if the accused were acquitted in the scheduled offences, that should result in termination of the chargesheet filed for the predicate offences under the provisions of the PML Act. The learned counsel submitted that the petitioners / accused are already acquitted of the scheduled offences and therefore the proceedings under the PML Act cannot proceed. HELD THAT - This is not disputed by the learned Central Government Standing Counsel for the respondent. This Revision Petition is allowed and the criminal proceedings initiated against the petitioners / accused Nos. 1 and 2 by the respondent under the provisions of the Prevention of Money Laundering Act, 2002 in Spl.C.C. No. 159/2015 are closed.

Summary

The petitioners challenged the rejection of their application under Section 190 read with Section 245(2) of the Cr.P.C. The accused were charged under the Prevention of Corruption Act and subsequently under the Prevention of Money Laundering Act. The accused argued that the PML Act prosecution was based on a chargesheet filed against only one accused and violated Article 20 of the Constitution. The Trial Court rejected their contentions. The accused filed a revision petition, citing a Supreme Court judgment that acquittal in scheduled offences should terminate charges under the PML Act. The Central Government Standing Counsel did not dispute this. The Revision Petition was allowed, and criminal proceedings under the PML Act against the accused were closed.