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2023 (4) TMI 263 - HC - Money LaunderingMoney Laundering - proceeds of crime - criminal activity or property arising from criminal activity, or not - Whether an outstanding arising out of any agreement or condition in MOU between the parties with respect to forex fluctuation amounts to proceeds of crime - not an FIR registered under Section 154 of Cr.P.C. - HELD THAT:- To prosecute under Section 3 of the Act, a person has to be actually involved in any process or activity connected with Proceeds of Crime. Proceeds of Crime is defined under Section 2(1)(u) of the said Act, defining that proceeds of crime means any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence or the value of any such property; or where such property is taken or held outside the country, then the property equivalent in value held within the country or abroad. - It is specifically stated that any property derived or obtained by any person as a result of criminal activity relating to a scheduled offence would amount to Proceeds of Crime. Every commercial activity where an outstanding arises would not fall within the ambit of Section 3 of the Act. It is not merely criminal activity relating to commission of a predicate offence but property has to be derived directly or indirectly as a result of such criminal activity to be tried and prosecuted under Section 3 of the Act - In the present case, no such property is derived or obtained either directly or indirectly by the petitioner herein either involving in criminal activity or handling any such property derived as a result of criminal activity. The question of concealing or being in possession or acquiring such property does not arise. The amount accrued as discussed earlier is on account of dollar- rupee fluctuation and it cannot in any manner be held that the petitioner had derived or obtained any property. Though, it was agreed that differential amount of rupee dollar fluctuation would be paid, at most it can be termed as an outstanding which can be recovered in a civil suit and by no stretch of imagination can it be called as Proceeds of Crime or the outstanding amount can be called as property as defined under Section 2(1)(v) of the Act. When there is no criminal activity nor any property which is derived as a consequence of criminal activity, it is opined that the proceedings cannot be permitted to continue. Criminal petition allowed.
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