FIR In Predicate Offence Stands Quashed Based On Settlement, ED Complaint Cannot Survive: Delhi High Court

The Delhi High Court has quashed an ECIR and proceedings arising therefrom, observing that the predicate offence had already been quashed and the order to that effect had attained finality. He drew attention of the Court to Directorate of Enforcement v. Gagan Deep Singh, a case where the issue as to whether PMLA proceedings would survive upon acquittal/discharge of accused in a scheduled offence is pending before the Supreme Court. … … If the person is finally discharged/acquitted of the scheduled offence or the criminal case against him is quashed by the Court of competent jurisdiction, there can be no offence of money-laundering against him or any one claiming such property being the property linked to stated scheduled offence through him.” The Court also considered decisions in Nik Nish Retail Ltd. v. Assistant Director, Enforcement Directorate, 2022 SCC OnLine Cal 4044 and Manturi Shashi Kumar v. Director, Directorate of Enforcement, 2023 SCC OnLine TS 1098, where ED complaints were quashed because the predicate offence did not survive. Counsels for Petitioners: Mr. Giriraj Subramanium, Mr. Simarpal Singh Sawhney, Mr. Akhilesh Talluri and Mr. Ravi Pathak, Advocates Counsels for Respondents: Mr. Anurag Ahluwalia, CGSC for UOI Mr. Zoheb Hossain, Spl.