HC quashed the ECIR and summons issued to the petitioner under ...

Court Quashes Money Laundering Case Under Section 3 PMLA as Surrendered Land Compensation Cannot Be "Proceeds of Crime"

March 20, 2025

Case Laws     Money Laundering     HC

HC quashed the ECIR and summons issued to the petitioner under PMLA, finding no evidence of money laundering. The court determined that sites granted as compensation, which had already been surrendered and allotment canceled, could not constitute "proceeds of crime" as defined under Section 3 PMLA. Following precedent established in NATESHA that site allotments cannot be proceeds of crime, the court found the petitioner was not in possession, enjoyment, or usage of any proceeds of crime. While the ED could pursue investigations against others implicated in MUDA corruption, the petitioner could not be prosecuted under PMLA, though this ruling does not affect the predicate offense proceedings in Crime No. 11/2024.

View Source