Supreme Court Inclined to Quash Money Laundering Case in Chhattisgarh Liquor Policy Scam

Last Updated on April 9, 2024 by News Desk

Introduction:

In a recent development, the Supreme Court has expressed a leaning towards quashing a money laundering case related to the alleged Chhattisgarh liquor policy scam. The case involves several accused, including IAS officer Atul Tuteja and his son Yash Tuteja. The court’s inclination stems from the absence of a predicate offence and proceeds of crime, highlighting a critical legal argument regarding the application of the Prevention of Money Laundering Act (PMLA).

Issue:

The primary issue before the court is whether the absence of a predicate offence and proceeds of crime warrants the quashing of the money laundering case against the accused.

Rule:

Under the Prevention of Money Laundering Act (PMLA), the prosecution of money laundering hinges upon the existence of a predicate offence and proceeds of crime. Without these foundational elements, the case lacks legal basis for pursuing charges of money laundering.

Analysis:

The court, led by Justices Abhay S Oka and Ujjal Bhuyan, scrutinized the arguments presented by the Additional Solicitor General SV Raju, representing the Directorate of Enforcement (ED). Noting the absence of a predicate offence, Justice AS Oka emphasized that without such an offence, there can be no proceeds of crime, thereby precluding the possibility of money laundering charges.

Conclusion:

In light of the absence of a predicate offence and proceeds of crime, the Supreme Court is inclined towards quashing the money laundering case against the accused involved in the alleged Chhattisgarh liquor policy scam. The court’s decision underscores the importance of legal foundations in prosecuting money laundering cases under the PMLA. The matter is set to be further deliberated upon, with the court scheduled to reconvene on April 8, 2024, to ascertain factual details regarding the proceedings.

Written — Athi Venkatesh AVD