Photo credit: IANS NEW DELHI: The ED does not necessarily require a predicate offence — an FIR registered for any scheduled offence by any enforcement agency — to initiate a probe under the Prevention of Money Laundering Act (PMLA).While vacating a stay on the ED probe against Cochin Minerals and Rutile Limited (CMRL), a public listed company of Kerala State Industrial Development Corporation, the Kerala High Court on Tuesday dismissed a petition of CMRL on the grounds that ED’s money laundering probe is independent of the existence of a schedule offence.A day after the Kerala High Court judgment, the ED launched searches on nine premises in Thiruvananthapuram on Wednesday, including the residence of former Keralam CM Pinarayi Vijiyan, where he was living with his daughter Veena, one of the accused who had allegedly received Rs 2.8 crore from CMRL without providing any IT services as claimed.Justice TR Ravi of the Kerala High Court dismissed petitioner CMRL’s challenge to the summons issued by the enforcement agency, saying “the issuance of summons was only for the purpose of investigation and does not even require the registration of an FIR”.Quoting from the Vijay Madanlal Choudhary (Supra) judgment of the Supreme Court, Justice Ravi held that “non-recording of an FIR regarding a scheduled offence does not impede the commencing of inquiry/investigation for initiating civil action of provisional attachment of property, being proceeds of crime, by the authorities referred to in Section 48 of the PMLA”.The court further held that “the word ‘investigation’ has been defined in Section 2(n)(a) to include all proceedings conducted by the Director or by an authority authorised, for the collection of evidence. A reading of the summons issued would show that what has been initiated is only an investigation”.“At this stage it is not possible to state what the outcome of the investigation would be. As the law has already been laid down by the Supreme Court, that the existence of an FIR is not a pre-condition for issuing summons under Section 50 of the PML Act, it only needs to be followed by this court,” the judge noted.The writ petition was held to be premature and not maintainable against summons issued under Section 50 PMLA, the court said. It further noted that immunity under the Income Tax settlement mechanism does not bar PMLA proceedings and that ED’s powers are independent of SFIO’s final report or prosecution.Dismissing the petition, the court noted that subsequent filing of SFIO prosecution complaint “cured the petitioners’ principal objection regarding absence of a scheduled offence”.Get the latest lifestyle updates on Times of India, along with Bakrid wishes, messages and eid 2026!End of ArticleFollow Us On Social MediaVideosTMC MLAs Stage Sit-In Over Delay In LoP Status, Office Space AllocationGiant Messi Statue Strapped With Ropes As Kolkata Prepares Removal After It Was ‘Swaying In Wind’India’s Private Sector Is Building a Stealth Fighter. Here’s What That Really Means.Amit Shah Orders Crackdown On Illegal Structures Near Indo-Pak Border, Seeks Demolition Within 15 KMMassive Drug Haul In Gujarat As ATS Recovers 100 Kg Cocaine From European Ship Near KutchLavish Celebration Clip Reignites Debate On Money Power In Pune Crash CaseAssam Assembly Passes Uniform Civil Code Bill, CM Himanta Hails It As ‘Historic’Tamil Nadu AIADMK Unity Restored As Rebel MLAs Patch Up With Edappadi Palaniswami CampBig Blow To Mamata: TMC MP Kakoli Ghosh Dastidar Resigns From All Party PostsRahul Gandhi Attacks Modi Govt Over CBSE OSM Row As Report Claims Warnings Were Ignored123PhotostoriesOne monochrome saree, unlimited main-character energy, and this time Madhuri Dixit means pure businessAmerica by rail: 5 iconic train journeys in the U.S. every traveller must experience once in a lifetimeVaibhav Sooryavanshi Home: Vaibhav Sooryavanshi’s modest home in Samastipur, Bihar tells the story of hard work, determination and family sacrificesHow to delete stress from your life7 painful truths about love and relationships people often don’t talk aboutBhindi to Lauki: Why we remove the crown of these 7 everyday vegetablesPregnancy nutrition: Superfoods every mother-to-be should add to her plate8 places in the world that look AI-generated but exist in real life and and how to visit themHow South Korea became the world’s second-largest beauty giant in 20268 hill stations travellers should avoid during heavy monsoon in India and their safer alternatives123Hot PicksSRH vs RRNHL Trade RumorsVaibhav SooryavanshiNFL Trade RumorEmma Raducanu net worthShreyas IyerPSSSB Excise Inspector Admit CardTop TrendingByju’s founder RaveendranBank holiday todayIndian Air ForceDelhi temperatureRed BalloonBengaluru Ebola CasePune curfewRahul GandhiHDFC ShareIndian Rupee
NEW DELHI: The ED does not necessarily require a predicate offence — an FIR registered for any scheduled offence by any enforcement agency — to initiate a probe under the Prevention of Money Laundering Act (PMLA).While vacating a stay on the ED probe against Cochin Minerals and Rutile Limited (CMRL), a public listed company of Kerala State Industrial Development Corporation, the Kerala High Court on Tuesday dismissed a petition of CMRL on the grounds that ED’s money laundering probe is independent of the existence of a schedule offence.A day after the Kerala High Court judgment, the ED launched searches on nine premises in Thiruvananthapuram on Wednesday, including the residence of former Keralam CM Pinarayi Vijiyan, where he was living with his daughter Veena, one of the accused who had allegedly received Rs 2.8 crore from CMRL without providing any IT services as claimed.Justice TR Ravi of the Kerala High Court dismissed petitioner CMRL’s challenge to the summons issued by the enforcement agency, saying “the issuance of summons was only for the purpose of investigation and does not even require the registration of an FIR”.Quoting from the Vijay Madanlal Choudhary (Supra) judgment of the Supreme Court, Justice Ravi held that “non-recording of an FIR regarding a scheduled offence does not impede the commencing of inquiry/investigation for initiating civil action of provisional attachment of property, being proceeds of crime, by the authorities referred to in Section 48 of the PMLA”.The court further held that “the word ‘investigation’ has been defined in Section 2(n)(a) to include all proceedings conducted by the Director or by an authority authorised, for the collection of evidence. A reading of the summons issued would show that what has been initiated is only an investigation”.“At this stage it is not possible to state what the outcome of the investigation would be. As the law has already been laid down by the Supreme Court, that the existence of an FIR is not a pre-condition for issuing summons under Section 50 of the PML Act, it only needs to be followed by this court,” the judge noted.The writ petition was held to be premature and not maintainable against summons issued under Section 50 PMLA, the court said. It further noted that immunity under the Income Tax settlement mechanism does not bar PMLA proceedings and that ED’s powers are independent of SFIO’s final report or prosecution.Dismissing the petition, the court noted that subsequent filing of SFIO prosecution complaint “cured the petitioners’ principal objection regarding absence of a scheduled offence”.
