2023 (9) TMI 725 - TELANGANA HIGH COURT

Money Laundering - predicate offence or not - no crime proceeds were generated in favour of the venture company - allegation against this petitioner is that he helped Mantena Srinivas Raju, but, the case against said Mantena Srinivas Raju in ECIR was also quashed by this Court - HELD THAT:- It cannot be disputed that the person who is not charged under the predicate offence cannot be investigated into under the Prevention of Money-Laundering Act, 2002. Any person dealing with the proceeds of crime in any manner whatsoever comes within the purview of the offence punishable under Section 3 of the Prevention of Money-Laundering Act, 2002.

The Honourable Supreme Court while cancelling the bail of this petitioner has not referred to Vijay Madanlal Choudhary’s case [2022 (7) TMI 1316 - SUPREME COURT] - It was concluded by the 3-Judge Bench of the Honourable Supreme Court in Vijay Madanlal Chudhary’s case, that if a person is finally discharged or acquitted of a scheduled offence or the criminal case, is quashed by the court of competent jurisdiction, there can be no offence of money laundering against him or anyone claiming such property being the property linked to stated scheduled offence through him.

As already discussed, the petitioner is being investigated for taking benefits from Mantena Srinivas. The said person was acquitted of the predicate offence and the proceedings against him in the present ECIR were also quashed on the ground that there were no criminal proceeds. In the said circumstances when there are no “criminal proceeds”, following the law as laid down by the Honourable Supreme Court in Vijay Madanlal Choudary’s case this Court deems it appropriate to quash the proceedings against the petitioner.

Petition allowed.