The Aryavarth Express
Agency(Karnataka): In a notable judgment, the Karnataka High Court has decided to terminate the legal proceedings against a petitioner, involved in a case concerning the Prevention of Money Laundering Act, 2002 (PMLA). The case, identified as Special Case No.781 of 2022, was pending before the Principal City Civil and Sessions Judge (Special Court for PMLA cases) in Bengaluru, stemming from a complaint filed on March 7, 2022, in ECIR No. BGZO/33/2020 by the respondent.
This court’s decision was influenced significantly by a Supreme Court ruling in the case of Pavana Dibbur vs. The Directorate of Enforcement, which clarified the applicability of certain offences under the PMLA. The Supreme Court had determined that for an offence under Section 120-B of the Indian Penal Code (IPC), pertaining to criminal conspiracy, to be considered a scheduled offence under the PMLA, it must be linked to another offence specifically listed in the PMLA schedule. The Karnataka High Court noted that, apart from the offence under Section 120-B of the IPC, the petitioner was not accused of any other offences that are recognized as scheduled offences under the PMLA.
Both parties presented their arguments before the court. The petitioner’s counsel argued based on the Supreme Court’s judgment, while the respondent’s counsel acknowledged this point but mentioned that a review petition against the Supreme Court’s decision is pending. Consequently, the court allowed the criminal petition, quashing the proceedings against the petitioner in the PMLA case. However, it granted the respondent the liberty to seek the revival of the case if the Supreme Court’s review petition yields a favorable outcome.
This decision highlights the importance of the Supreme Court’s interpretations in shaping lower court rulings and underscores the ongoing legal debates surrounding the application of the PMLA.
