When the Scheduled Offence Disappears: The PMLA Rule Applied in Yash Tuteja
Yash Tuteja v. Union of India, 2024 INSC 301, demonstrates the dependence of a money-laundering complaint on legally sustainable scheduled offences. The Supreme Court quashed the PMLA complaint after examining the offences on which it was based.
The statutory dependency
Money laundering is a separate offence, but “proceeds of crime” under Section 2(1)(u) must come from criminal activity relating to a scheduled offence. If the alleged predicate provisions are not in the Schedule, or the only conspiracy alleged is not conspiracy to commit a scheduled offence, the foundation may fail.
The complaint in Yash Tuteja relied on Income-tax Act offences and several IPC provisions. The Court applied Pavana Dibbur to Section 120B IPC and examined whether the remaining provisions could supply the scheduled offence required by the PMLA.
Procedure before the Special Court
The Court also confirmed that cognizance of the Section 3 offence is taken on an authorised complaint under Section 44(1)(b). Complaint procedure under the general criminal procedure law applies unless inconsistent with the PMLA.
CrPC and BNSS transition
Yash Tuteja arose under the CrPC. For complaints after 1 July 2024, the corresponding BNSS provisions require separate attention, including Section 223 BNSS and the hearing requirement discussed in later Supreme Court decisions. Which code applies depends on institution and savings rules, not merely the hearing date.
Practical consequence
Defence and prosecution should map the alleged predicate precisely: provision, date, Schedule entry, property generated and status of the predicate case. A money-laundering complaint cannot be maintained by describing ordinary criminal allegations as economic wrongdoing without satisfying the statutory Schedule.
Sources
Supreme Court of India, Yash Tuteja v. Union of India, 2024 INSC 301: https://api.sci.gov.in/supremecourt/2023/14771/14771_2023_8_68_52049_Judgement_08-Apr-2024.pdf
Prevention of Money-Laundering Act, 2002: https://dor.gov.in/prevention-money-laundering
Bharatiya Nagarik Suraksha Sanhita, 2023: https://www.indiacode.nic.in/bitstream/123456789/20335/1/a2023-46.pdf
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