New Delhi: The Supreme Court Tuesday said the very concept of the offence of money laundering in the Prevention of Money Laundering Act (PMLA) is very wide and any activity connected with the proceeds of crime is encompassed within the expression of section 3 of the legislation.
Section 3 of the PMLA says whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with proceeds of crime and projecting it as untainted property shall be guilty of the offence of money laundering.
A three-judge bench headed by Justice A M Khanwilkar is dealing with a batch of pleas concerning the interpretation of certain provisions of the PMLA. The fact of the matter is that the very concept of the offence of money laundering in our enactment is very broad, very wide. It is different. It is not based on one word or one expression alone, said the bench, also comprising Justices Dinesh Maheshwari and C T Ravikumar. So, any activity connected with the proceeds of crime is well taken over, is encompassed within this expression of section 3, the bench observed. A lawyer, appearing for one of the petitioners, told the bench that section 3 has to be read down to say that mere use and possession of proceeds of crime does not tantamount to money laundering.
He said there has to be something more and there has to be a projection. Any activity connected with the proceeds of crime, that may be inclusive of use, it may be inclusive of concealment, it may be inclusive of possession, that is how it has been framed in our enactment, the bench observed.