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TMI Blog2023 (10) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of salaries - reduction of equity shareholding of the complainant - falsification of accounts. HELD THAT:- The Telangana High Court in Manturi Shashi Kumar [ 2023 (4) TMI 1199 - TELANGANA HIGH COURT] has also quashed a complaint under Section 3 of the PMLA on the grounds of the accused being discharged/acquitted of the scheduled offence. In view of the aforesaid legal position, the present complaint filed by the ED and the proceedings arising therefrom cannot survive. Considering that the FIR has been quashed by this court and that it has not been challenged till date, there can be no offence of money laundering under section 3 of the PMLA against the petitioners. Petition allowed. - HON'BLE MR. JUSTICE AMIT BANSAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordingly, the aforesaid FIR was quashed by the Coordinate Bench vide order dated 28th September, 2022 in CRL.M.C.4972/2022. 4. It is pertinent to note that the said order records the no objection of the learned APP for quashing of the aforesaid FIR. It is an admitted position that the aforesaid order has not been challenged and has therefore, attained finality. 5. Noting the aforesaid, the Predecessor Bench of this Court had granted stay of investigation in the present petition vide order dated 5th December, 2022. 6. Mr. Giriraj Subramanium, counsel appearing on behalf of the petitioners submits that in view of the fact that the FIR in respect of the predicate offence stands quashed, the present complaint filed by the ED is not mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ney-laundering. The Authorities under the 2002 Act cannot 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 scheduled offence through him. 10. In Nik Nish Retail Ltd. (supra), the Calcutta High Court also dealt with a case where the FIR in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dering Act, 2002. The Special Leave Petition is accordingly disposed of. 12. Similarly, another SLP being SLP (Crl.) Diary No. 28128/2023 filed by the ED against the judgment of the Madras High Court on a similar issue was dismissed as withdrawn on the basis that the FIR on the predicate offence had been quashed. 13. The Telangana High Court in Manturi Shashi Kumar (supra) has also quashed a complaint under Section 3 of the PMLA on the grounds of the accused being discharged/acquitted of the scheduled offence. The relevant observations of the said judgment are set out below:- 28. Thus, according to Supreme Court, the offence under Section 3 of PMLA is dependent on illegal gain of property as a result of criminal activity r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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