Money laundering by people in power erodes public confidence: SC

Noting that money laundering by those in power eroded public confidence in governance and led to systemic vulnerabilities in financial institutions, the Supreme Court on Monday dismissed former Gujarat IAS officer Pradeep Sharma's plea, seeking quashing of charges in cases probed by the Enforcement Directorate.

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“The alleged offences in the present case have a direct bearing on the economy, as illicit financial transactions deprive the state of legitimate revenue, distort market integrity, and contribute to economic instability. Such acts, when committed by persons in positions of power, erode public confidence in governance and lead to systemic vulnerabilities within financial institutions,” a Bench of Justices Vikram Nath and Punjab Varale said, dismissing Sharma's petition.

Sharma had challenged the Gujarat High Court’s March 14, 2023, order, dismissing his criminal revision application and refusing to quash the trial court’s order rejecting his discharge plea in a money laundering case under the Prevention of Money Laundering Act, 2002.

“It is evident that the appellant (Sharma) has failed to establish any legally sustainable ground, warranting interference by this court at a pre-trial stage. The submissions made in support of the appeal are neither legally untenable nor in the best interest of justice,” the court said.

It also dismissed Sharma's plea seeking a preliminary inquiry into the multiple corruption cases filed against him by the Gujarat Police.