24/04/2023
Can 'bribe giver' be prosecuted under Prevention of Money Laundering Law?
Hon'ble Supreme Court answered in affirmative in case of 'Directorate of Enforcement v. Padmanabhan Kishore'
Brief Facts:
❖ CBI Checked car parked in front of premises of Add. CIT, Chennai & recovered INR 50 Lacs from vehicle. Allegedly this money was paid by Mr. Padmanabhan for getting some benefits from CIT, with whom his Income Tax case was pending
→ CBI registered FIR and completing investigation filed chargesheet before court alleging offences u/s 120B IPC & Sec. 7, 12, 13 of PC Act.
→ED registered ECIR and after completing investigation filed charge sheet against four persons including Mr. Padmanabhan, who approached for quashing of ECIR. Hon'ble Madras High Court accepted the petition of Mr. Padmanabhan, on the ground that the amount in question, as long as it was in the hands of respondent, could not be said to be tainted money, it assumed such character only after it was received by the public servant.
Judgment of Supreme Court:
Hon'ble Supreme court analysed case and held that Mr. Padamanbhan (alleged bribe giver) was involved in activity connected with proceed of crime, and accordingly, case against him is maintainable.
Key Observation:
*It is true that so long as the amount is in the hands of a bribe giver, and till it does not get impressed with the requisite intent and is actually handed over as a bribe, it would definitely be untainted money.
*If the money is handed over without such intent, it would be a mere entrustment. If it is thereafter appropriated by the public servant, the offence would be of misappropriation but certainly not of bribe. *The crucial part therefore is the requisite intent to hand over the amount as bribe and normally such intent must necessarily be antecedent or prior to the moment the amount is handed over.
*Thus, the requisite intent would always be at the core before the amount is handed over. Such intent having been entertained well before the amount is actually handed over, the person concerned would certainly be involved in the process or activity connected with "proceeds of crime"
*By handing over money with the intent of giving bribe, such person will be assisting or will knowingly be a party to an activity connected with the proceeds of crime.The relevant expressions from Section 3 of the PML Act are thus wide enough to cover the role played by such person.
