The High Court dismissed the petitions seeking to quash the ...

Court Upholds Money Laundering Complaint; Affirms PMLA's Constitutionality Despite Pending Predicate Offense.

April 1, 2024

Case Laws     Money Laundering     HC

The High Court dismissed the petitions seeking to quash the criminal complaint under the Prevention of Money-Laundering Act, 2002 (PMLA). The petitioners argued that the complaint lacked sufficient grounds, as the predicate offense initiated by the CBI was pending, and there was no evidence linking the funds used for property purchase to proceeds of crime. However, the court upheld the constitutionality and interpretation of the PMLA as clarified by the Supreme Court in Vijay Madanlal Choudhary case. It emphasized that money laundering is a continuous process, and prosecution under the PMLA can be initiated independently of the status of the scheduled offense.

View Source