Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 2002 Prevention of Money Laundering Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Prevention of Money Laundering Act, 2002 – ss. 2(1)(u), 3, and 4 – Prosecution case was that A-1 was Additional Commissioner of Income Tax – On intelligence, the CBI checked a car that was parked in front of the house of A1 and recovered a sum of Rs. 50,00,000/- in cash – It is alleged that A1 and A3 were in that car at that time – During investigation, it came to light that the sum of Rs. 50,00,000/- was handed over to A-1 by A-2 whose income tax file was pending with A1 for clearance – Since A-2 wanted certain benefits, he had allegedly paid the sum of Rs. 50,00,000/- as bribe to A1 – In connection with this seizure, case was registered under s. 120- B IPC and ss. 7, 12, 13(1)(d) r/w s. 13(2) of the Prevention of Corruption Act, 1988, s. 3 of the Prevention of Money Laundering Act, 2002 against A-1, A-2, A-3, A-4, A-5 and A6 – A-2 filed writ petition before High Court for quashing the proceedings on the ground that the amount in question as long as it was in the hands of respondent could not be said to be tainted money; that it assumed such character only after it was received by the public servant and as such respondent could not be proceeded against under the provisions of PML Act – High Court allowed writ petition and quashed the proceedings in PML Act against the respondent – On State’s appeal, held: The definition of “proceeds of crime” in PML Act, inter alia, means any property derived or obtained by any person as a result of criminal activity relating to a scheduled offence – The offences punishable under ss. 7, 12 and 13 are scheduled offences – Any property thus derived as a result of criminal activity relating to offence mentioned in paragraph 8 of Part-A of the Schedule would certainly be “proceeds of crime” – It is true that so long as the amount is in the hands of a bribe giver, and till it does not get impressed with the requisite intent and is actually handed over as a bribe, it would definitely be untainted money – If the money is handed over without such intent, it would be a mere entrustment – If it is thereafter appropriated by the public servant, the offence would be of misappropriation or species thereof but certainly not of bribe – The crucial part therefore is the requisite intent to hand over the amount as bribe and normally such intent must necessarily be antecedent or prior to the moment the amount is handed over – Thus, the requisite intent would always be at the core before the amount is handed over – Such intent having been entertained well before the amount is actually handed over, the person concerned would certainly be involved in the process or activity connected with “proceeds of crime” including inter alia, the aspects of possession or acquisition thereof – By handing over money with the intent of giving bribe, such person will be assisting or will knowingly be a party to an activity connected with the proceeds of crime – Without such active participation on part of the person concerned, the money would not assume the character of being proceeds of crime – The relevant expressions from s. 3 of the PML Act are thus wide enough to cover the role played by such person – A bare perusal of complaint made by the Enforcement Directorate showed that the respondent was prima facie involved in the activity connected with the proceeds of crime. |
Judge | Honble Mr. Justice Uday Umesh Lalit |
Neutral Citation | 2022 INSC 1143 |
Petitioner | Directorate Of Enforcement |
Respondent | Padmanabhan Kishore |
SCR | [2022] 13 S.C.R. 1064 |
Judgement Date | 2022-10-31 |
Case Number | 1864 |
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