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Madras HC Quashes PMLA Complaint Following Predicate-Offence Acquittal

TaxGuru
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Summary

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  • The Madras High Court has quashed a complaint filed by the Directorate of Enforcement under the Prevention of Money Laundering Act, 2002, following the acquittal of petitioners in a related predicate offence.
  • The court's decision stemmed from a prior ruling that set aside the petitioners' conviction under the Prevention of Corruption Act, 1988.
  • Citing Vijay Madanlal Choudhary v. Union of India, the court emphasized that without a conviction in the predicate case, the PMLA charges could not proceed.
  • The Directorate of Enforcement retains the option to pursue further legal action if new developments arise in the predicate case.

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