Criminal Conspiracy as a PMLA Scheduled Offence: The Rule in Pavana Dibbur
Pavana Dibbur v. Directorate of Enforcement, 2023 INSC 1029, resolved an important question about Section 120B IPC and the PMLA Schedule. The Supreme Court held that conspiracy does not become a scheduled offence in every case merely because Section 120B appears in Part A of the Schedule.
The required connection
The conspiracy must be to commit an offence that is itself included in the PMLA Schedule. A conspiracy to commit a non-scheduled offence cannot independently supply the predicate required for money-laundering prosecution.
This interpretation follows the structure of Section 3. “Proceeds of crime” must arise from criminal activity relating to a scheduled offence. Treating every conspiracy as scheduled would expand PMLA coverage far beyond the offences chosen by Parliament.
Current-code cross-reference
Pavana Dibbur concerned Section 120B IPC. For conduct governed by the Bharatiya Nyaya Sanhita, 2023, criminal conspiracy is addressed by Section 61 BNS. The PMLA Schedule and applicable commencement and savings provisions must be checked before treating any modern offence as a predicate; a numerical cross-reference alone is insufficient.
Liability of a person not accused of the predicate offence
The Court also clarified that a person prosecuted for money laundering need not always be an accused in the scheduled-offence case. The prosecution must nevertheless prove that proceeds of crime existed and that the person was knowingly involved in a process or activity connected with them.
Practical pleading
A complaint should identify the scheduled offence, the criminal activity that generated property, the property or value alleged to be proceeds and the accused’s particular activity under Section 3. General allegations of conspiracy cannot fill a missing predicate.
Sources
Supreme Court of India, Pavana Dibbur v. Directorate of Enforcement, 2023 INSC 1029: https://api.sci.gov.in/supremecourt/2022/42568/42568_2022_8_1501_48657_Judgement_29-Nov-2023.pdf
Prevention of Money-Laundering Act, 2002: https://dor.gov.in/prevention-money-laundering
Bharatiya Nyaya Sanhita, 2023: https://www.indiacode.nic.in/bitstream/123456789/20062/1/a202345.pdf
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