Acquittal in scheduled offences leads to the termination of proceedings under the Prevention of Money Laundering Act.

JUDGMENT

1. The petitioners have challenged the order dtd. 9/2/2021 passed by the XLVII Addl. City Civil and Sessions Judge and Special Judge for CBI Cases at Bengaluru (CCH No.48) in Spl.CC.No.77/2011, by which it rejected an application filed by the petitioners under Sec. 245(2) read with Sec. 227 of Cr.P.C.

2. The short facts required to discern the dispute in issue are that the respondent initiated prosecution of the petitioners by a complaint under Sec. 45(1) of the Prevention of Money Laundering Act, 2002. It was claimed in the complaint that the petitioner No.1 was accused of certain schedule offences under the Prevention of Money Laundering Act in various Police Stations in Crime No.274/2005 at Yelahanka Police Station, Crime No.152/2007 at Hulimavu Police Station, Crime No.451/2008 at Rajagopalnagar Police Station, Crime No.196/2009 at Rajarajeshwarinagar Police Station and Crime No.740/2009 at Kamakshipalya Police Station. It was accused that the petitioner No.1 had utilized the proceeds of the crime to purchase certain properties. It was alleged that accused No.2 being the wife of accused No.1 had purchased certain properties in her name and she claimed that she had raised money from accused Nos.3, 4, 5, 6 and 7 to purchase the properties.

3. It is stated that the accused No.1 was acquitted of the offence mentioned above and therefore, he filed an application for discharge in Spl.CC.No.77/2011. The said application was rejected by the Trial Court on the ground that the acquittal of the petitioner No.1/accused No.1 in the criminal cases was inconsequential and proceedings under the Prevention of Money Laundering Act can continue against the petitioners.

4. Being aggrieved by the same, the present revision petition is filed.

5. The learned counsel for the petitioners submitted that a large number of petitions were disposed off by the Hon'ble Apex Court in terms of the judgment in Vijay Madanlal Choudhary and others vs. Union of India and others [2022 SCC Online SC 929], where the Hon'ble Apex Court had held that the acquittal of the accused in schedule offences should result in termination of the proceedings under the Prevention of Money Laundering Act, 2002.

6. This is not disputed by the respondent.

7. In that view of the matter, the revision petition is allowed. The order dtd. 9/2/2021 passed by the XLVII Addl. City Civil and Sessions Judge and Special Judge for CBI Cases at Bengaluru (CCH No.48) in Spl.CC.No.77/2011 is set aside. Consequently, application filed by the petitioners for discharge is allowed and the petitioners are acquitted of the offence alleged in Spl.CC.No.77/2011. The prosecution of the petitioners by the respondent for the alleged offences under the Prevention of Money Laundering Act are set at naught and they are set free.