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  • Writer's pictureTrivedi and Parashar (Advocates and Solicitors)

Judicial Updates-

Supreme Court - PMLA: Receipt of bribe is an Act of Money Laundering.


In ๐˜ . ๐˜‰๐˜ข๐˜ญ๐˜ข๐˜ซ๐˜ช ๐˜ท. ๐˜’๐˜ข๐˜ณ๐˜ต๐˜ฉ๐˜ช๐˜ฌ ๐˜‹๐˜ฆ๐˜ด๐˜ข๐˜ณ๐˜ช & ๐˜ˆ๐˜ฏ๐˜ณ. [Special Leave Petition (Criminal) No. 12779-12781 of 2022], a complaint was filed in 2018, alleging that the Appellant with several others had taken bribes from individuals seeking employment in the Tamil Nadu Metro Transport Corporation (MTC). The Complainant alleged that someone approached him and said, โ€œYou could obtain the jobs through the Appellant's influence by paying him a sum of money.โ€ The Appellant and others were booked by the Authority under various sections of the Indian Penal Code, 1860, for criminal breach of trust, cheating, and criminal intimidation. However, in 2021, the Madras High Court quashed the case for cheating after being informed that the Complainant and the other victims had mutually settled the matter with the accused. Subsequently, the Appellant received a summons from the Enforcement Directorate regarding the recruitment scam. However, the Madras High Court allowed the petitions filed by the Appellant challenging the summons under the Prevention of Money Laundering Act 2002 ("Act"), stating that there were no jurisdictional facts to initiate proceedings under the Act. Shortly thereafter, the Supreme Court set aside the order of the Madras High Court which dismissed the case against the former transport minister and consequently reinstated the criminal complaint against him and the other accused individuals.


In November 2022, the Madras High Court directed a new investigation into the cash-for-job scam. The High Court remarked about discrepancies in the agency's previous investigation, due to which certain essential aspects ought to be reinvestigated. The Appellant filed an appeal before the Supreme Court against the order of the High Court.


The Supreme Court rejected the Appellant's submissions, emphasizing that it is evident that a public servant receiving illegal gratification possesses the proceeds of a crime. The Court found it preposterous to argue that the mere generation of proceeds of crime is insufficient to constitute the offense of money laundering. Further, the Court highlighted the provisions of the law, particularly Section 3 of the Act, which addresses the offense of money laundering, and Section 2(1)(u) of the Act, which defines "proceeds of crime."


The Supreme Court observed, "๐˜๐˜ต ๐˜ช๐˜ด ๐˜ต๐˜ณ๐˜ถ๐˜ฆ ๐˜ต๐˜ฉ๐˜ข๐˜ต ๐˜ต๐˜ฉ๐˜ฆ๐˜ณ๐˜ฆ ๐˜ข๐˜ณ๐˜ฆ ๐˜ด๐˜ฐ๐˜ฎ๐˜ฆ ๐˜ฐ๐˜ง๐˜ง๐˜ฆ๐˜ฏ๐˜ด๐˜ฆ๐˜ด, ๐˜ธ๐˜ฉ๐˜ช๐˜ค๐˜ฉ, ๐˜ต๐˜ฉ๐˜ฐ๐˜ถ๐˜จ๐˜ฉ ๐˜ด๐˜ค๐˜ฉ๐˜ฆ๐˜ฅ๐˜ถ๐˜ญ๐˜ฆ๐˜ฅ ๐˜ฐ๐˜ง๐˜ง๐˜ฆ๐˜ฏ๐˜ด๐˜ฆ๐˜ด, ๐˜ฎ๐˜ข๐˜บ ๐˜ฐ๐˜ณ ๐˜ฎ๐˜ข๐˜บ ๐˜ฏ๐˜ฐ๐˜ต ๐˜จ๐˜ฆ๐˜ฏ๐˜ฆ๐˜ณ๐˜ข๐˜ต๐˜ฆ ๐˜ฑ๐˜ณ๐˜ฐ๐˜ค๐˜ฆ๐˜ฆ๐˜ฅ๐˜ด ๐˜ฐ๐˜ง ๐˜ค๐˜ณ๐˜ช๐˜ฎ๐˜ฆ. ๐˜๐˜ฐ๐˜ณ ๐˜ช๐˜ฏ๐˜ด๐˜ต๐˜ข๐˜ฏ๐˜ค๐˜ฆ, ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฐ๐˜ง๐˜ง๐˜ฆ๐˜ฏ๐˜ด๐˜ฆ ๐˜ฐ๐˜ง ๐˜ฎ๐˜ถ๐˜ณ๐˜ฅ๐˜ฆ๐˜ณ ๐˜ฑ๐˜ถ๐˜ฏ๐˜ช๐˜ด๐˜ฉ๐˜ข๐˜ฃ๐˜ญ๐˜ฆ ๐˜ถ๐˜ฏ๐˜ฅ๐˜ฆ๐˜ณ ๐˜š๐˜ฆ๐˜ค๐˜ต๐˜ช๐˜ฐ๐˜ฏ 302 ๐˜ช๐˜ด ๐˜ข ๐˜ด๐˜ค๐˜ฉ๐˜ฆ๐˜ฅ๐˜ถ๐˜ญ๐˜ฆ๐˜ฅ ๐˜ฐ๐˜ง๐˜ง๐˜ฆ๐˜ฏ๐˜ด๐˜ฆ. ๐˜œ๐˜ฏ๐˜ญ๐˜ฆ๐˜ด๐˜ด ๐˜ช๐˜ต ๐˜ช๐˜ด ๐˜ฎ๐˜ถ๐˜ณ๐˜ฅ๐˜ฆ๐˜ณ ๐˜ง๐˜ฐ๐˜ณ ๐˜จ๐˜ข๐˜ช๐˜ฏ ๐˜ฐ๐˜ณ ๐˜ฎ๐˜ถ๐˜ณ๐˜ฅ๐˜ฆ๐˜ณ ๐˜ฃ๐˜บ ๐˜ข ๐˜ฉ๐˜ช๐˜ณ๐˜ฆ๐˜ฅ ๐˜ข๐˜ด๐˜ด๐˜ข๐˜ด๐˜ด๐˜ช๐˜ฏ, ๐˜ต๐˜ฉ๐˜ฆ ๐˜ด๐˜ข๐˜ฎ๐˜ฆ ๐˜ฎ๐˜ข๐˜บ ๐˜ฐ๐˜ณ ๐˜ฎ๐˜ข๐˜บ ๐˜ฏ๐˜ฐ๐˜ต ๐˜จ๐˜ฆ๐˜ฏ๐˜ฆ๐˜ณ๐˜ข๐˜ต๐˜ฆ ๐˜ฑ๐˜ณ๐˜ฐ๐˜ค๐˜ฆ๐˜ฆ๐˜ฅ๐˜ด ๐˜ฐ๐˜ง ๐˜ค๐˜ณ๐˜ช๐˜ฎ๐˜ฆ. ๐˜๐˜ต ๐˜ช๐˜ด ๐˜ช๐˜ฏ ๐˜ณ๐˜ฆ๐˜ด๐˜ฑ๐˜ฆ๐˜ค๐˜ต ๐˜ฐ๐˜ง ๐˜ด๐˜ถ๐˜ค๐˜ฉ ๐˜ต๐˜บ๐˜ฑ๐˜ฆ๐˜ด ๐˜ฐ๐˜ง ๐˜ฐ๐˜ง๐˜ง๐˜ฆ๐˜ฏ๐˜ด๐˜ฆ๐˜ด ๐˜ต๐˜ฉ๐˜ข๐˜ต ๐˜ฐ๐˜ฏ๐˜ฆ ๐˜ฎ๐˜ข๐˜บ ๐˜ฑ๐˜ฐ๐˜ด๐˜ด๐˜ช๐˜ฃ๐˜ญ๐˜บ ๐˜ข๐˜ณ๐˜จ๐˜ถ๐˜ฆ ๐˜ต๐˜ฉ๐˜ข๐˜ต ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฎ๐˜ฆ๐˜ณ๐˜ฆ ๐˜ค๐˜ฐ๐˜ฎ๐˜ฎ๐˜ช๐˜ด๐˜ด๐˜ช๐˜ฐ๐˜ฏ ๐˜ฐ๐˜ง ๐˜ต๐˜ฉ๐˜ฆ ๐˜ค๐˜ณ๐˜ช๐˜ฎ๐˜ฆ ๐˜ช๐˜ด ๐˜ฏ๐˜ฐ๐˜ต ๐˜ด๐˜ถ๐˜ง๐˜ง๐˜ช๐˜ค๐˜ช๐˜ฆ๐˜ฏ๐˜ต, ๐˜ฃ๐˜ถ๐˜ต ๐˜ต๐˜ฉ๐˜ฆ ๐˜จ๐˜ฆ๐˜ฏ๐˜ฆ๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ฐ๐˜ง ๐˜ฑ๐˜ณ๐˜ฐ๐˜ค๐˜ฆ๐˜ฆ๐˜ฅ๐˜ด ๐˜ฐ๐˜ง ๐˜ค๐˜ณ๐˜ช๐˜ฎ๐˜ฆ ๐˜ช๐˜ด ๐˜ฏ๐˜ฆ๐˜ค๐˜ฆ๐˜ด๐˜ด๐˜ข๐˜ณ๐˜บ. ๐˜๐˜ฏ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ค๐˜ข๐˜ด๐˜ฆ ๐˜ฐ๐˜ง ๐˜ข๐˜ฏ ๐˜ฐ๐˜ง๐˜ง๐˜ฆ๐˜ฏ๐˜ด๐˜ฆ ๐˜ฐ๐˜ง ๐˜ค๐˜ฐ๐˜ณ๐˜ณ๐˜ถ๐˜ฑ๐˜ต๐˜ช๐˜ฐ๐˜ฏ, ๐˜ต๐˜ฉ๐˜ฆ ๐˜ค๐˜ณ๐˜ช๐˜ฎ๐˜ช๐˜ฏ๐˜ข๐˜ญ ๐˜ข๐˜ค๐˜ต๐˜ช๐˜ท๐˜ช๐˜ต๐˜บ ๐˜ข๐˜ฏ๐˜ฅ ๐˜ต๐˜ฉ๐˜ฆ ๐˜จ๐˜ฆ๐˜ฏ๐˜ฆ๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ฐ๐˜ง ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฑ๐˜ณ๐˜ฐ๐˜ค๐˜ฆ๐˜ฆ๐˜ฅ๐˜ด ๐˜ฐ๐˜ง ๐˜ค๐˜ณ๐˜ช๐˜ฎ๐˜ฆ ๐˜ข๐˜ณ๐˜ฆ ๐˜ญ๐˜ช๐˜ฌ๐˜ฆ ๐˜š๐˜ช๐˜ข๐˜ฎ๐˜ฆ๐˜ด๐˜ฆ ๐˜ต๐˜ธ๐˜ช๐˜ฏ๐˜ด. ๐˜›๐˜ฉ๐˜ฆ๐˜ณ๐˜ฆ๐˜ง๐˜ฐ๐˜ณ๐˜ฆ, ๐˜ฆ๐˜ท๐˜ฆ๐˜ฏ ๐˜ช๐˜ง ๐˜ข๐˜ฏ ๐˜ช๐˜ฏ๐˜ต๐˜ข๐˜ฏ๐˜จ๐˜ช๐˜ฃ๐˜ญ๐˜ฆ ๐˜ฑ๐˜ณ๐˜ฐ๐˜ฑ๐˜ฆ๐˜ณ๐˜ต๐˜บ ๐˜ช๐˜ด ๐˜ฅ๐˜ฆ๐˜ณ๐˜ช๐˜ท๐˜ฆ๐˜ฅ ๐˜ข๐˜ด ๐˜ข ๐˜ณ๐˜ฆ๐˜ด๐˜ถ๐˜ญ๐˜ต ๐˜ฐ๐˜ง ๐˜ค๐˜ณ๐˜ช๐˜ฎ๐˜ช๐˜ฏ๐˜ข๐˜ญ ๐˜ข๐˜ค๐˜ต๐˜ช๐˜ท๐˜ช๐˜ต๐˜บ ๐˜ณ๐˜ฆ๐˜ญ๐˜ข๐˜ต๐˜ช๐˜ฏ๐˜จ ๐˜ต๐˜ฐ ๐˜ข ๐˜ด๐˜ค๐˜ฉ๐˜ฆ๐˜ฅ๐˜ถ๐˜ญ๐˜ฆ๐˜ฅ ๐˜ฐ๐˜ง๐˜ง๐˜ฆ๐˜ฏ๐˜ด๐˜ฆ, ๐˜ช๐˜ต ๐˜ฃ๐˜ฆ๐˜ค๐˜ฐ๐˜ฎ๐˜ฆ๐˜ด ๐˜ฑ๐˜ณ๐˜ฐ๐˜ค๐˜ฆ๐˜ฆ๐˜ฅ๐˜ด ๐˜ฐ๐˜ง ๐˜ค๐˜ณ๐˜ช๐˜ฎ๐˜ฆ ๐˜ถ๐˜ฏ๐˜ฅ๐˜ฆ๐˜ณ ๐˜š๐˜ฆ๐˜ค๐˜ต๐˜ช๐˜ฐ๐˜ฏ 2(1)(๐˜ถ)โ€ฆ๐˜ž๐˜ฉ๐˜ฆ๐˜ณ๐˜ฆ๐˜ท๐˜ฆ๐˜ณ ๐˜ต๐˜ฉ๐˜ฆ๐˜ณ๐˜ฆ ๐˜ข๐˜ณ๐˜ฆ ๐˜ข๐˜ญ๐˜ญ๐˜ฆ๐˜จ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ๐˜ด ๐˜ฐ๐˜ง ๐˜ค๐˜ฐ๐˜ณ๐˜ณ๐˜ถ๐˜ฑ๐˜ต๐˜ช๐˜ฐ๐˜ฏ, ๐˜ต๐˜ฉ๐˜ฆ ๐˜ข๐˜ค๐˜ฒ๐˜ถ๐˜ช๐˜ด๐˜ช๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ฐ๐˜ง ๐˜ฑ๐˜ณ๐˜ฐ๐˜ค๐˜ฆ๐˜ฆ๐˜ฅ๐˜ด ๐˜ฐ๐˜ง ๐˜ต๐˜ฉ๐˜ฆ ๐˜ค๐˜ณ๐˜ช๐˜ฎ๐˜ฆ ๐˜ช๐˜ต๐˜ด๐˜ฆ๐˜ญ๐˜ง ๐˜ช๐˜ด ๐˜ต๐˜ข๐˜ฏ๐˜ต๐˜ข๐˜ฎ๐˜ฐ๐˜ถ๐˜ฏ๐˜ต ๐˜ต๐˜ฐ ๐˜ฎ๐˜ฐ๐˜ฏ๐˜ฆ๐˜บ ๐˜ญ๐˜ข๐˜ถ๐˜ฏ๐˜ฅ๐˜ฆ๐˜ณ๐˜ช๐˜ฏ๐˜จ."

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