ED had contended that money laundering is not isolated act but continuous one, and when crime proceeds are covered up

Supreme Court Affirms Money Laundering as an Offence in Continuance in Pradeep Sharma Case: In a historic verdict, the Supreme Court of India has reiterated that money laundering is a continuing offence, dismissing the request of former Gujarat IAS officer Pradeep Sharma to be acquitted in a case under the Prevention of Money Laundering Act (PMLA). Sharma was charged with earning proceeds of crime by accepting bribes while serving as a collector.

The Enforcement Directorate (ED) had contended that money laundering is not an isolated act but a continuous one, as and when the crime proceeds are covered up, utilised, or made to appear genuine. The Supreme Court supported this position by basing its judgment on its previous ruling in Vijay Madanlal Choudhary v. Union of India (2023), where it laid down that the crime of money laundering is autonomous of the original crime and runs in continuation.

A division bench comprising Justices Vikram Nath and Prasanna B. Varale emphasized the legislative intent behind the PMLA, stating, "The act of money laundering does not end with a single instance but continues as long as the proceeds of crime are concealed, used, or presented as untainted property." The Court clarified that the relevant date for determining the offence is not when the preceding crime occurred but when the accused engaged with the proceeds of crime.

The Court went on to record that the records on hand spoke of a prolonged abuse of authority by Sharma with the generation and utilization of untaxed money on a long-term basis. The ED was successful in proving the involvement of Sharma in financial deals using the fruits of crime way beyond the period of the beginning of corruption activities.

This ruling emphasizes the PMLA's function in countering the threat of money laundering, which tends to involve intricate transactions over a period of time. The Court's ruling highlights the need for careful judicial examination in economic offence cases to ensure that those in power are brought to book for their misdeeds.

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