The court established that PMLA provisions cannot be applied retrospectively and require a scheduled offence for validity.

1. By way of the present petition under Section 482 of the Code of Criminal Procedure, 1973 (hereinafter referred to as ‘Cr.P.C.’) the petitioner seeks quashing of the proceedings in ECIR No.03/DZ/2011/AD(SC)/SDS dated 24.02.2011 under sections 3 and 4 of the Prevention of Money Laundering Act, 2002 (hereinafter referred to as ‘PMLA’) and the proceedings emanating therefrom.

2. Shorn off unnecessary details, the facts as borne out from the petition are that the petitioner is presently working at the post of Chief Engineer (Projects) in Uttar Pradesh State Industrial Development Corporation since 2005. The CBI/Dehradun branch received an information that five employees of Punjab National Bank (hereinafter referred to as ‘PNB’) and other persons had during the period from November, 2005 to December 2006 entered into a criminal conspiracy and made false entries in the accounts of PNB, Vidhan Sabha branch, Dehradun allowing deposits and withdrawal from five fictitious accounts maintained in the name of non-existent persons at PNB, Arya Vanprastha Ashram Branch, Jwalapur, Haridwar. By doing so, said persons misappropriated the funds of PNB and also caused a pecuniary gain to themselves or any other persons and correspondingly pecuniary loss to the PNB. In the said information it was stated that the said persons had obtained an illegal pecuniary gain of Rs.10,88,987/- (Rupees Ten lakhs eighty eight thousand nine eighty seven) which was the interest accrued on the principal amount of Rs.3,30,82,105/- (Rupees Three crore thirty lakhs eighty two thousand one hundred and five) deposited in these accounts and subsequently withdrawn.

3. On the basis of the said information RC No. 0072011A0003 was registered on 21.01.2011, by CBI SPE, Dehradhun against the five persons namely, Mr.M.M. Sharma Manager (Retd.), PNB Vidhan Sabha Branch Dehradun, Mr. Harish Kamboj Deputy Manager, PNB, Vidhan Sabha Branch, Dehradun, Mr. A.K. Bansal Manager, PNB, Arya Vanprastha Ashram Branch, Jwalapur, Haridwar, Mr. Sanjeev Kumar Clerk, PNB, Arya Vanprastha Ashram Branch, Jwalapur, Haridwar, Mr. A.K. Chaddha Clerk (Retd.), PNB Vidhan Sabha Branch Dehradun and other unknown persons under Sections 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988 (hereinafter referred to as ‘PC Act’), and Sections 120B, 409, 477A Indian Penal Code (hereinafter referred to as ‘IPC’). The said FIR pertained to a total of 71 bank accounts, which were in two groups one pertaining to five accounts and the second group pertaining to remaining 66 accounts.

4. The respondent, Enforcement Directorate registered a case bearing ECIR No. 03/DZ/2011/AD(SC)/SDS dated 24.02.2011 against the aforementioned five persons and other unknown persons for committing an offence under Section 3 of PMLA punishable under Section 4 of the said Act. On the basis of the said facts, the respondent concluded that as the aforementioned five persons cheated the PNB by manipulating the records of the bank by abusing their official position for their personal gain, it is therefore essential to conduct investigation under the provisions of Prevention of Money Laundering Act, 2002 since the amount involved is more than Rs.30 lakhs which is threshold limit of Part B of PMLA-2002.

5. On the basis of aforesaid FIR, CBI/ Dehradun investigated the matter and during the course of investigation, the petitioner was arrested by CBI on 27.04.2011. The police remand of petitioner was obtained on 05.08.2011. Vide order dated 01.10.2011 passed by learned District & Additional Sessions Judge, Karkardooma Courts, Delhi, bail was granted to him.

6. On the completion of the investigation into the first set of 5 accounts, the CBI filed a charge sheet on 09.09.2011 before the learned Special Judge, CBI, Dehradun against the two original accused persons and the present petitioner for offences committed u/s 13(2) r/w 13(1)(d) PC Act and Sections 120-B,420,471 r/w 468,409 and 477-A IPC. Three other accused person we