SC dismisses ED’s petition for review of verdict that said no PMLA case if criminal conspiracy doesn’t relate to ‘scheduled offence’

Satya Prakash

New Delhi, March 27

The Supreme Court has dismissed petitions seeking review of its judgment which ruled the Enforcement Directorate can’t invoke the Prevention of Money Laundering Act against an accused citing Section 120B of the IPC on criminal conspiracy, if the alleged conspiracy didn’t relate to a ‘scheduled offence’ under the PMLA.

Dismissing the petitions filed by the Enforcement Directorate and Alliance University seeking review of its November 29, 2023 verdict, a Bench of Justice Abhay S Oka and Justice Pankaj Mithal said that no ground for review was made out.

“We have perused the Judgment and Order dated 29th November 2023 which has been sought to be reviewed. There is no error apparent on the record. Even otherwise, there is no ground for review. Review Petitions are dismissed,” the Bench said in its March 19 order.

“An offence punishable under Section 120-B will become a scheduled offence only if the conspiracy alleged is of committing an offence specifically included in the schedule. On that ground, we’ve quashed the proceedings,” the top court had ruled.

It had turned down the ED’s submission that Section 120¬B of the IPC was included in Part A of the PMLA Schedule of Offences and, therefore, even if the allegation was of making a criminal conspiracy to commit an offence which was not a part of the Schedule, the offence would become a ‘Scheduled Offence’.

“By that logic, a conspiracy to commit any offence under any penal law which is capable of generating proceeds can be converted into a scheduled offence by applying Section 120¬B of the IPC, though the offence is not a part of the Schedule. This cannot be the intention of the legislature,” the Supreme Court had said.

“Every crime which may generate proceeds of crime need not be a scheduled offence… If we accept such an interpretation, the statute may attract the vice of unconstitutionality for being manifestly arbitrary. It cannot be the legislature’s intention to make every offence not included in the Schedule a scheduled offence by applying Section 120¬B,” it had said.

“…the offence under Section 120¬B of IPC included in Part A of the Schedule (of PLMA) will become a scheduled offence only if the criminal conspiracy is to commit any offence already included in Parts A, B or C of the Schedule,” it had said.

Another SC Bench of Justice AS Bopanna and Justice Sanjay Kumar had on March 20 dismissed the Centre’s petition seeking review of its verdict that said it’s necessary for the ED to furnish a copy of grounds of arrest to the arrested person in writing “without exception”.