DIRECTORATE OF ENFORCEMENT versus PADMANABHAN KISHORE

DIRECTORATE OF ENFORCEMENT versus PADMANABHAN KISHORE

Where a person hands over money with the requisite antecedent intent to give it as a bribe, that person is prima facie involved in an activity connected with 'proceeds of crime' within the meaning of Section 2(1)(u) and Section 3 of the PML Act, and therefore may be proceeded against under the PML Act; the High Court erred in quashing the PMLA proceedings against the respondent on the ground that the money was untainted while in his hands.

Parties
Appellant: Directorate of Enforcement; Respondent: Padmanabhan Kishore
Jurisdiction
India
Judgment Date
31 October 2022
Procedural Posture
Criminal Appeal / Appeal From Judgment and Order Dated 01.03.2021 of the High Court of Judicature at Madras Quashing Proceedings Under the PML Act
Outcome
Appeal allowed; High Court judgment and order set aside
Legal Topics
Proceeds of Crime, Money Laundering, Bribe, Quashing of Proceedings, Interpretation of Section 3 PMLA
Prevention of Money Laundering Act, 2002 Prevention of Corruption Act, 1988 Criminal Law Enforcement Directorate Proceedings Proceeds of Crime Money Laundering Bribe Quashing of Proceedings +1 more

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Parties

Directorate of Enforcement

Appellant

Padmanabhan Kishore

Respondent

Procedural Posture

Criminal Appeal / Appeal From Judgment and Order Dated 01.03.2021 of the High Court of Judicature at Madras Quashing Proceedings Under the PML Act

Legal Issues

  1. 1 Whether a person who hands over money to a public servant with intent to give a bribe can be proceeded against under Section 3 of the PML Act as engaged in activity connected with proceeds of crime
  2. 2 Whether money in the hands of the bribe giver is 'proceeds of crime' prior to transfer and acceptance by the public servant
  3. 3 Whether the respondent was prima facie involved in activity connected with proceeds of crime such that PMLA proceedings should not be quashed

Ratio Decidendi

Where a person hands over money with the requisite antecedent intent to give it as a bribe, that person is prima facie involved in an activity connected with 'proceeds of crime' within the meaning of Section 2(1)(u) and Section 3 of the PML Act, and therefore may be proceeded against under the PML Act; the High Court erred in quashing the PMLA proceedings against the respondent on the ground that the money was untainted while in his hands.

Court Disposition

Appeal allowed; High Court judgment and order set aside

Orders

  • Set aside the judgment and order dated 01.03.2021 of the High Court of Judicature at Madras in W.P. No.25670 of 2019
  • Respondent shall continue to be arrayed and proceeded against in E.C.I.R. No.13 of 2016 registered by the Enforcement Directorate