Case Note & Summary
The case involved an appeal by the Directorate of Enforcement against a High Court decision that quashed proceedings against Padmanabhan Kishore under the Prevention of Money Laundering Act, 2002 (PML Act). The respondent was accused of paying a bribe of Rs.50,00,000 to a public servant, Andasu Ravinder, which led to a CBI investigation and subsequent charges under the Prevention of Corruption Act, 1988. The High Court ruled that the money could not be considered tainted while in the hands of the respondent, as it only became proceeds of crime once accepted by the public servant. The Supreme Court disagreed, stating that the respondent's intent to bribe established his involvement in the proceeds of crime, thus allowing the Enforcement Directorate's proceedings to continue. The court emphasized that the requisite intent to commit bribery must precede the act of handing over the money, and that the respondent's actions fell within the scope of the PML Act. Consequently, the Supreme Court set aside the High Court's order and directed that the respondent be proceeded against in accordance with law.
Headnote
A) Criminal Law - Prevention of Money Laundering - Definition of Proceeds of Crime - The definition of 'proceeds of crime' includes property derived from criminal activity relating to a scheduled offence - Prevention of Money Laundering Act, 2002, Section 2(1)(u) - The court held that the respondent's involvement in the transaction constituted a connection to proceeds of crime, thus allowing proceedings under the PML Act (Paras 12-20).
Issue of Consideration
Whether the respondent can be proceeded against under the provisions of the Prevention of Money Laundering Act, 2002.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and directed that the respondent continue to be proceeded against under the PML Act.
Law Points
- Prevention of Money Laundering Act
- 2002
- definition of proceeds of crime
- role of bribe giver
- intent in bribery
- judicial review of High Court decisions
