New Delhi:The Supreme Court on Friday said if there is no predicate offence, there are no proceeds of crime then there can't be money laundering, while questioning the Enforcement Directorate's (ED) proceedings against a civil servant, in the previous Bhupesh Baghel government, and his son in connection with an alleged liquor syndicate racket in Chhattisgarh.
A bench of Justices Abhay S. Oka and Ujjal Bhuyan was hearing a plea by former IAS officer Anil Tuteja and his son Yash Tuteja against the ED's move to initiate investigation against them under the Prevention of Money Laundering Act (PMLA) based on an income tax raid against them.
The apex court observed that ED initiated an investigation in the absence of a predicate offence, a crime that is a component of a more serious crime, and proceeds of crime.
"If there's no predicate offence, there are no proceeds of crime. Therefore, there can’t be money laundering….," the bench told the Additional Solicitor General (ASG) S V Raju, representing the ED.
Raju contended before the bench that a fresh predicate offence was registered and the ED would file a fresh case on its basis. The ASG referred to the case registered in Uttar Pradesh in connection to the alleged fake holograms.
The bench queried Raju, why the agency did not register any complaint till now? Raju replied that in July 2023, the apex court had passed a stay order. The bench told the ASG that it was only concerned with the liquor scam case and asked the agency to go ahead with its complaint in the fake hologram case.
The bench orally observed that as far as this case is concerned, there is no predicate offence, therefore there cannot be any proceeds of crime. It added that therefore the complaint needs to be quashed. The bench asked Raju to clarify whether some other petitions listed with Tuteja's petition pertained to the same case.
The apex court has scheduled the matter for further hearing on April 8. The ED has alleged that Anil Tuteja, who was considered close to the former Congress CM, is the kingpin of the over Rs 2,000 crore liquor syndicate racket in the state.
In May last year, both father and son moved the apex court claiming PMLA proceedings were premised on an income tax raid, which is not a predicate offence under the PMLA. In July last year, the apex court restrained the ED from taking coercive action against Anil and Yash Tuteja, apart from the other accused in the case.
Later, the ED complained to the Uttar Pradesh police about fake holograms being manufactured in a company near Noida and alleged that these holograms were used on bottles distributed in the illegal liquor syndicate.
