The AT held that the Rs. 2.02 crores earnest money received by ...

Money Laundering Case: Fraudulent Bank Transaction Funds Deemed Proceeds of Crime Under PMLA Section 2(u)

May 6, 2025

Case Laws     Money Laundering     AT

The AT held that the Rs. 2.02 crores earnest money received by the appellant, originating from fraudulent bank transactions, constitutes 'proceeds of crime' under PMLA, 2002. Despite the amount being contractually forfeited prior to attachment, the PMLA provisions supersede contractual agreements. The tribunal rejected arguments regarding retrospective application, emphasizing that money laundering assessment depends on actions post-scheduled offence inclusion. The court affirmed the directorate's power to attach proceeds of crime, irrespective of the current holder's knowledge or direct involvement in the predicate offense. Consequently, the appeal was dismissed, validating the provisional attachment order.

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