Possession of proceeds of crime infers necessary knowledge for prosecution under the Prevention of Money Laundering Act, regardless of whether the individual is charged in underlying predicate offences.

ORDER :

A. BADHARUDEEN, J.

The 3rd accused in S.C. No. 1 of 2022 on the files of the Special Court/CBI Thiruvananthapuram (originally filed as S.C. No. 412 of 2018 before the Principal Sessions Court, Ernakulam) arising out of ECIR No.17/2009 of the Directorate of Enforcement (for short, ‘ED’ hereafter), Kochi has filed this Criminal Miscellaneous Case under Section 482 of the Code of Criminal procedure (for short, ‘the CrPC’ hereafter) and the prayer in this petition is to quash Annexure—G complaint and further proceedings thereof against the petitioner in the interest of justice.

2. Heard the learned Senior Counsel appearing for the petitioner, the learned Standing Counsel appearing for the ED and perused the decisions as well as the prosecution records made available.

3. While seeking quashment of the case as against the petitioner/3rd accused, it is pointed out by the learned Senior Counsel for the petitioner that ED registered R.C.No.18(A)/2008/CBI/KER against the petitioner arraying her as the 2nd accused and when the matter had been pending before the Chief Judicial Magistrate Court as C.C.No.125 of 2021 the petitioner filed Crl.M.C.No.2017 of 2022 before this Court and in the said proceedings as per order dated 10.04.2025, this Court quashed the same where the prosecution alleged commission of offences punishable under Section 13 (1)(d) r/w 13(2) of the Prevention of Corruption Act, 1988 (for short, ‘the PC Act 1988) and under Section 109 of the INDIAN PENAL CODE (for short, ‘the IPC’ hereafter) r/w Section 13 (1)(e) of the PC Act, 1988 by the petitioner along with the other accused. Accordingly it is submitted by the learned Senior Counsel for the petitioner that in fact the predicate offence alleged in Crime No.RC.18(A)/2008 is not available. Therefore the present complaint (Annexure–G) alleging commission of offence under Section 3 of the Prevention of Money Laundering Act, 2002 (for short, ‘the PML Act, 2002’ hereafter) punishable under Section 4 of the PML Act, 2002 would not sustain against the petitioner in the absence of a predicate/scheduled offence to precede.

4. In fact the learned Senior Counsel for the petitioner as well as the learned Special Public Prosecutor relied on the three Bench decision of the Apex Court reported in 2022 SCC OnLine SCC 929 Vijay Madanlal Choudhary and Others v. Union of India and Others particularly with reference to paragraph No.270 and also the decision of the Apex Court reported in 2023 SCC OnLine SC 1586 Pavana Dibbur v. Directorate of Enforcement with reference to paragraph Nos. 17 and 31. It is also pointed out that the PML Act, 2002 came into force with effect from 01.07.2005 and Section 2 (y) defined scheduled offence means (i) the offences specified under part A of the schedule or (ii) the offences specified under Part B of the Schedule if the total value involved in such offence is thirty lakh rupees or more. It is pointed out by the learned Senior Counsel for the petitioner that in the instant case the amount involved as per the allegation of the prosecution in the complaint is only Rs.15 lakh and therefore the offences alleged in R.C.5(A)/2009/CBI/TVM under the PC Act, 1988 viz. Sections 7 , 12, 13(2) r/w 13(1), Section 7 would not come under the purview of scheduled offences. It is argued further that the offences alleged under Section 12 0B or 420 of IPC in R.C.5(A)/2009/CBI/TVM are not scheduled offences during the period. It is also pointed out by the learned Senior Counsel for the petitioner further that for the purpose of treating the offences alleged in R.C.5(A)/2009/CBI/TVM the amount involved would come to Rs.30 lakh or more. Apart from that it is contended that as per Section 3 of PML Act, 2002 mens rea or knowledge of the person who directly or indirectly attempts to indulge assists or to a party or is actually involved in any process or activity connected with the proceeds of crime including its concealment, possession, acquisition or use and projecting o