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2019 (10) TMI 1408 - HC - Money LaunderingJurisdiction of proceedings initiated by the respondents under PMLA - money-laundering and siphoning of funds - scheduled offences or not - HELD THAT:- It is beyond the cavil of any debate that the offence of criminal conspiracy punishable under section 120- B RPC shall be deemed to be a scheduled offence corresponding to Section 120-B of IPC which figures on top of Part A of the Schedule appended to the PMLA. The argument of learned counsel for the petitioner that Section 120- RPC cannot be taken to be a scheduled offence is an argument in despair and, therefore, cannot be accepted - the definition of ‘corresponding law’ as given in clause (ia) of Sub- section 1 of Section 2 of PMLA inserted by Act 2 of 2013 is required to be restricted to the expression used in the Amendment Act 2 of 2013 which introduced various new provisions in the PMLA. It is, thus, clearly demonstrable that the offence of criminal conspiracy defined under section 120-A RPC and punishable under section 120- B RPC is a deemed scheduled offence for the purpose of Section 3 read with clause (u) of Sub-section 1 of Section 2 of PMLA. It is beyond the pale of any doubt that offence of criminal conspiracy punishable under Section 120- B IPC is a stand alone offence and figures on top of Part A of the Schedule of PMLA. That being the position, it is difficult to accept the plea that unless the offence of criminal conspiracy is committed in conjunction with a scheduled offence, it cannot be taken to be a scheduled offence for the purpose of Section 3 read with clause (u) of Sub- section 1 of Section 2 of PMLA. Undoubtedly, the offence of money- laundering relates to the process or activity connected with the proceeds of the crime including its concealment possession, acquisition etcetra and ‘proceeds of crime’ would mean any property derived or obtained directly or indirectly as a result of criminal activity relating to scheduled offence. Once Section 120- B is held to be a distinct, independent and stand alone offence and is one of the scheduled offences under PMLA, any property derived or obtained by any person directly or indirectly as a result of criminal activity relating to the offence of conspiracy would come within the definition of ‘proceeds of crime’. No fault could be found with the investigation or action initiated by the respondents including issuance of summons in exercise of powers conferred by Section 50(2) and (50(3) of PMLA - Petition dismissed.
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