PMLA Decision

In this case (Vijayraj Surana v. ED [2024] GCtR 3475 (Madras)], FIR against accused by CBI was quashed by HC after which accused challenged prosecution under PMLA, 2002. This case answers the point whether quashment of predicate offence would lead to acquittal under PMLA, 2002 or not. The wordings in Vijay Madanlal's case cannot be accorded a narrow meaning by relying only on the summarisation towards the end of the judgment, but the observations in various paragraphs and the findings made therein must be read in tandem to extract its true essence. If the principles of automatic quashment of ECIR is adopted arithmetically, the very purpose and objective of PMLA is defeated. Hence, to warrant a quashing of the ECIR, mere quashing of the FIR on technical grounds by itself does not make the ECIR liable to be quashed. Mere quashing of the FIR does not absolve the accused under the PMLA proceedings and inturn cannot collapse the predicate offence in the PMLA proceedings.