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TMI Blog2023 (11) TMI 1083X X X X Extracts X X X X X X X X Extracts X X X X ..... ived or obtained directly or indirectly as a result of criminal activity relating to a scheduled offence can be recorded as proceeds of crime but the authorities under the 2002 Act cannot resort to action against any person for Money Laundering on an assumption that the property recovered by them must be proceeds of crime and that a scheduled offence has been committed unless the same is registered with the jurisdictional police or pending inquiry by way of complaint before the competent forum and in the event the person named in the criminal activity relating to a scheduled offence is finally absolved by a court of competent jurisdiction owing to an order of discharge, acquittal or because of quashing of the criminal case (schedule offence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (hereinafter referred as the Act) against the petitioner can continue when the petitioner stands acquitted of the charges in a duly constituted criminal trial of the allegations of committing the predicate offence based on which the ECIR under the Act was instituted, as committing predicate offence is sine-quo-non for instituting a case under the Act i.e. unless there is a predicate offence there cannot be a offence of Money Laundering. 4. The learned counsel for the petitioner next submits that mere earning money or obtaining any property by committing a crime does not amount to Money Laundering, but obtaining or deriving any property by committing a crime related to the scheduled offences under the Act and then projecting or claiming ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having been derived or obtained as a result of criminal activity relating to or in relation to the scheduled offence. Further, while the whole quantum of a tainted property need not be regarded as proceed of crime, the property qualifying under the definition clause of Section 2U of the Act will necessarily be treated as crime property or laundered property. 8. It is thus, submitted that in the event a person is acquitted in relation to the scheduled offence who rightfully owns or possesses and alleged tainted property, then such a property cannot be termed as proceeds of crime. 9. The learned counsel for the petitioner further submits that in view of the submissions recorded herein above, the facts of the case be appreciated. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel for the petitioner further submits that the crux of the allegation is that the petitioner through scheduled offences generated proceed of crime which was used to amass movable and immovable properties. It is next submitted that the petitioner was involved in 27 cases and he has been acquitted in all the cases but when the present ECIR was registered at that time two cases were pending being Jamalpur P.S. Case No.121 of 2010 and Munger Kotwali P.S. Case No.227 of 2010. 11. The learned counsel for the petitioner next submits that petitioner in a duly constituted trial was acquitted in both the cases i.e. Jamalpur P.S. Case No.121 of 2010 and Munger Kotwali P.S. Case No.227 of 2010. It is thus, submitted that when the petitioner wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shing of the criminal case (schedule offence) against him/her, there can be no action for money-laundering against such a person or person claiming through him in relation to the property linked to the stated scheduled offence. This interpretation alone can be countenanced on the basis of the provisions of the 2002 Act, in particular Section 2(1)(u) read with Section 3. Taking any other view would be rewriting of these provisions and disregarding the express language of definition clause proceeds of crime , as it obtains as of now. 281. The next question is : whether the offence under Section 3 is a standalone offence? Indeed, it is dependent on the wrongful and illegal gain of property as a result of criminal activity relating to a sch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roperty which is derived or obtained directly or indirectly as a result of criminal activity relating to a scheduled offence can be recorded as proceeds of crime but the authorities under the 2002 Act cannot resort to action against any person for Money Laundering on an assumption that the property recovered by them must be proceeds of crime and that a scheduled offence has been committed unless the same is registered with the jurisdictional police or pending inquiry by way of complaint before the competent forum and in the event the person named in the criminal activity relating to a scheduled offence is finally absolved by a court of competent jurisdiction owing to an order of discharge, acquittal or because of quashing of the criminal ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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