Case Note & Summary
The petitioner, a sitting Member of the Legislative Assembly, filed a criminal petition under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, seeking to quash the initiation of proceedings by the Directorate of Enforcement (ED) pursuant to ECIR F.No.BGZO/25/2024, arising out of Crime No.11/2024 registered by the Lokayukta Police. The petitioner also sought to quash the summons issued under Section 50 of the Prevention of Money Laundering Act, 2002 (PMLA) dated 22/01/2025. The petitioner was not an accused in the predicate offence. The court heard arguments from Sri C.V. Nagesh, learned senior counsel for the petitioner, and Sri Arvind Kamath, learned Additional Solicitor General of India for the respondent. The court found that the predicate offence in Crime No.11/2024 was not a scheduled offence under the PMLA, and therefore, the ED had no jurisdiction to initiate proceedings or issue summons. The court quashed the ECIR and the summons, holding that the initiation of proceedings was without legal basis.
Headnote
A) Criminal Law - Prevention of Money Laundering Act - Scheduled Offence - Initiation of ECIR - The core issue was whether the Enforcement Directorate could register an ECIR and issue summons under Section 50 of PMLA when the predicate offence in Crime No.11/2024 was not a scheduled offence under the PMLA. The court held that the predicate offence must be a scheduled offence under the PMLA for the ED to have jurisdiction. Since the predicate offence was not a scheduled offence, the entire proceedings were quashed. (Paras 1-10) B) Criminal Procedure - Summons under Section 50 PMLA - Validity - The court examined the validity of summons issued under Section 50 of PMLA to the petitioner, who was not an accused in the predicate offence. The court held that without a valid scheduled offence, the summons under Section 50 PMLA cannot be sustained. The summons were quashed. (Paras 1-10)
Issue of Consideration
Whether the initiation of proceedings under the Prevention of Money Laundering Act, 2002 (PMLA) and the issuance of summons under Section 50 of the PMLA can be sustained when the predicate offence does not constitute a scheduled offence under the PMLA.
Final Decision
The court quashed the ECIR F.No.BGZO/25/2024 and the summons under Section 50 PMLA dated 22/01/2025.
Law Points
- PMLA proceedings cannot be initiated without a scheduled offence
- ECIR quashed for lack of predicate offence
- Section 50 summons invalid without scheduled offence
