What happened
The Karnataka High Court dismissed petitions filed by 11 individuals convicted in connection with a 2016 “notes exchange” scam. The High Court ruled that prosecuting those individuals under the Prevention of Money Laundering Act (PMLA) after they have already been convicted for predicate offences under the Indian Penal Code (IPC) or other laws does not amount to a second trial for the same offence.
The High Court’s reasoning was based on the idea that PMLA creates a distinct statutory offence. Even though the predicate offences (such as IPC offences) provide the origin for “proceeds of crime”, the PMLA offence exists because of laundering of those proceeds of crime. Therefore, the High Court treated PMLA prosecution as an independent statutory proceeding requiring a full-fledged case in the special court.
The High Court order was passed by Justice M. Nagaprasanna.
Background and earlier position
The petitions challenged PMLA prosecution after trial and conviction connected to the 2016 “notes exchange” scam. The trial court convicted the petitioners and sentenced them to imprisonment for six years in 2024. Appeals against conviction were pending before the High Court when the petitions were considered.
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