The Kerala High Court has refused to quash money laundering proceedings under the Prevention of Money Laundering Act, 2002 (PMLA), holding that continued possession of properties purchased using bribe money, even after it has been notified as scheduled offence, warranted examination during trial.
The case stemmed from a CBI probe alleging that ₹15 lakh in bribe money was deposited in a joint account with the public servant’s spouse and later used to purchase two properties. The Enforcement Directorate (ED) later registered a complaint under Section 3 of the PMLA, contending that the properties represented the proceeds of crime.
The petitioner sought to quash the complaint under Section 482 CrPC, arguing that the predicate offence involved less than ₹30 lakh, below the statutory threshold. It was further submitted that she lacked mens rea or knowledge of the funds’ source.
Justice A. Badarudeen, however, held that money laundering is a continuing offence as long as the proceeds of crime are retained or used, even if the predicate offence occurred before its inclusion in the PMLA Schedule. The Court observed that the petitioner’s claim of absence of knowledge or mens rea could not be accepted at the pre-trial stage and must be determined during trial based on evidence.
Finding a prima facie case of continued possession, the Court dismissed the plea and directed the Special Court to proceed with the trial expeditiously.
Appearances
Petitioner- Senior Advocate S. Sreekumar, assisted by M.A. Mohammed Siraj, P. Prijith, Thomas P. Kuruvilla, R. Githesh, Ajay Ben Jose, Manjunath Menon, Sachin Jacob Ambat, Anna Linda Eden, Harikrishnan S., and P. Martin Jose.
Respondent- Standing Counsel Jaishankar V. Nair, assisted by Special Public Prosecutors Rekha S. and A. Rajesh.
