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TMI Blog2023 (11) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... learned XIV Additional Special Judge, Chennai. 3. The brief facts that are necessary for the disposal of this petition are as follows: (i) The petitioner is shown as A2 in the complaint for the alleged offence of money laundering under Section 3 of the Prevention of Money Laundering Act, 2002 (hereinafter referred to as '2002 Act'). (ii) The Deputy Director, Directorate of Enforcement, Chennai, registered an information in ECIR No.05/2012, following the registration of a complaint in Cr.No.71 of 2012 on 03.02.2012, for offences under Sections 120(B), 406 and 420 of IPC. (iii) The petitioner has challenged the proceedings in CC No.1 of 2017 mainly on the ground that the case has been registered in continuation of a predicate o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the petitioner was shown as A2 in the impugned complaint only on the basis of his statement. Referring to the entire statement of the petitioner, learned counsel submitted that the statement that was obtained from the petitioner when he was in custody, cannot be the basis for proceeding against the petitioner for an offence under the 2002 Act. Learned counsel for the petitioner also referred to Section 3 of the 2002 Act. 7. Even after hearing the lengthy submissions of the learned counsel for the petitioner by referring to several documents, this Court prima facie finds that the petitioner's involvement is admitted by the petitioner from the materials produced and the submissions of the petitioner himself. 8. First of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndering under the 2002 Act. 12. The conclusion of the Hon'ble Supreme Court in Vijay Madanlal's case [cited supra] can be summarised as follows: (I)Section 3 of the 2002 Act has a wider reach and captures every process and activity, direct or indirect, in dealing with the proceeds of crime and is not limited to the happening of the final act of integration of tainted property in the formal economy. The Explanation inserted to Section 3 by way of amendment of 2019 does not expand the purport of Section 3 but is only clarificatory in nature. It clarifies the word 'and' preceding the expression projecting or claiming as 'or'; and being a clarificatory amendment, it would make no difference even if it is introduced by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f competent jurisdiction, there can be no offence of money-laundering against him or any one claiming such property being the property linked to stated scheduled offence through him. [Para 187(v)(d); Page 533, 534] 13. In the present case, the petitioner himself has admitted his acquaintance with the 1st accused. The FIR in the predicate offence may not of course reveal the involvement of the petitioner. However, the statement obtained from the witnesses who were examined in connection with the predicate offence would show how the petitioner was introduced to the bank officials as person who is the authorised signatory of the business concern of the 1st accused. 14. Though the learned counsel for the petitioner pointed out that the petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the petitioner and submitted that the respondent have not taken note of the said statement. It is premature to consider the merits of the defence that may be taken by the petitioner at the time of trial. Petitioner's involvement cannot be denied in view of the interpretation of provisions of Section 3 of the 2002 Act, by the Hon'ble Supreme Court. 17. It is admitted that the petitioner has purchased a flat by paying substantial cash. The actual consideration that was paid for the property is not disclosed by the petitioner. However, even on a face value, a sum of Rs.45 lakhs is paid as sale consideration by the petitioner. 18. The learned counsel for the petitioner submitted that the 1st accused has obtained power of attorney d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to prevent abuse of the process of any court or otherwise to secure the ends of justice, though it may not be possible to lay down any precise, clearly defined and sufficiently channelised and inflexible guidelines or rigid formulae and to give an exhaustive list of myriad kinds of cases wherein such power should be exercised: (1) Where the allegations made in the first information report or the complaint, even if they are taken at their face value and accepted in their entirety do not prima facie constitute any offence or make out a case against the accused. (2) Where the allegations in the first information report and other materials, if any, accompanying the FIR do not disclose a cognizable offence, justifying an investigation by po ..... X X X X Extracts X X X X X X X X Extracts X X X X
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