PMLA process quashed for absence of nexus between pre-scheduled offence property acquisition (2005-2007) and subsequently generated proceeds of crime (2020-2021); no prima facie material of accused involvement in laundering processes.

JUDGMENT :

ASHWIN D. BHOBE, J.

1. Heard, Mr. Sunil Manohar, learned Senior Advocate for the Applicant, Mr. Prashant Mishra, learned Advocate for Respondent No. 1-ED and Ms. Pallavi Dabholkar, learned A.P.P. for the State/Respondent.

2. This Criminal Application, filed under Section 482 of the Code of Criminal Procedure, 1973 (“Cr.P.C.”), is preferred by the Applicant against the Order dated 16.09.2021 passed by the City Civil Court & Additional Sessions Judge, Greater Bombay (the Designated Court for the Prevention of Money Laundering Act, 2002) (for short “Designated Court”), issuing process against the Applicant in PMLA Special Case No. 1089 of 2021 and quashing the complaint in PMLA Special Case No. 1089 of 2021 filed against the Applicant for the offence under Section 3 punishable under Section 4 of the Prevention of Money Laundering Act, 2002 (for short “PMLA, 2002”).

3. The facts of the case are that, on 21.04.2021, a First Information Report (“FIR”) was registered against Anil Deshmukh and other unknown persons for the offence under Sections 7 of the Prevention of Corruption Act, 1988, and 120-B of the Indian Penal Code, 1980. Column 3(b) of the FIR states that the subject offence was committed “During the period 2020-2021”.

4. Pursuant to the investigation carried out in connection with the FIR, a complaint under the second proviso to Section 45 of the PMLA, 2002, was filed. ECIR No. ECIR/MBZO- 1/66/2021, dated 11.05.2021, was recorded under the provisions of PM.L.A. The Applicant is shown as “Accused No. 11” in the complaint. The predicate offence is referred to in paragraph 3.3 of the complaint. The money trail, as evidenced by the investigation, is referred to in paragraph 7 of the complaint. A chart showing the money trail is in paragraph 8 of the complaint. The estimation of proceeds of crime is referred to in paragraphs 9.2 to 9.4 of the complaint. The role assigned to the Applicant is referred to in paragraph 12.11 of the complaint. Proceedings were registered as PMLA Special Case No. 1089 of 2021.

5. A Supplementary Charge-sheet was filed on 29.12.2021.

6. By order dated 16.09.2021, passed in PMLA Special Case No. 1089 of 2021, the Designated Court issued process against the Applicant and the other accused. The order is reproduced below:

“ORDER

1. Read the complaint thoroughly. Also carefully examined the documents filed with the complaint. I have carefully read the statements of the witnesses recorded under section 50(2) and (3) Prevention of Money Laundering Act (for short P.M.L.A.). The record further shows that the Hon'ble High Court directed CBI to inquire the matter and accordingly directed preliminary enquiry in respect of the allegations of collections of money by them Home Minister Mr. Anil Deshmukh through accused No.1 and others. Accordingly CBI conducted enqruiry and prima- facie found involvement of present accused, hence registered FIR No. RC2232021A0003 dated 21.04.2021 under section 7 of P.C. Act, 2018 r/w section 120-B of IPC, which are scheduled offences under Schedule-A of PM.LA. Act. ECIR No. ECIR/MBZO-1/66/2021 dated 11.05.2021 was recorded under the provisions of PM.L.A. and investigation was conducted. It is therefore, clear that, Scheduled offence was already registered which is the basic qualification and requirement to initiate proceedings und