Finds 'Prima Facie Involvement' in Money Laundering: Quashing Petition Dismissed: MP HC

In a significant ruling on October 26, 2023, Hon'ble Shri Justice Vivek Rusia of the Special Court constituted under the Prevention of Money Laundering Act, 2002 (PML Act), dismissed the quashing petition filed by Ashok Pipada under Section 482 of the Code of Criminal Procedure (CrPC).

The Court stated, "No clean chit can be given to the applicant under Section 482 of the CrPC," reaffirming that the petition for quashing the prosecution complaint against Pipada was untenable.

The judgment elaborated on various sections of the PML Act, particularly focusing on Section 3, which defines money laundering. The Court also highlighted that under Section 24 of the PML Act, the burden was on the applicant to prove his innocence. In Pipada's case, the Court found "prima facie involvement" in the money-laundering activities related to financial fraud connected to the sale and purchase of land.

The Court was represented by Deputy Advocate General Shri Kushal Goyal, while the applicant, Ashok Pipada, was represented by Advocate Shri Arjun Garg.

With this dismissal, all eyes are now on how the case will unfold as it goes back to the lower court for further proceedings. This decision has set a precedent, emphasizing the stringent application of the PML Act in money-laundering cases.

Date of Decision: 26 October 2023

ASHOK PIPADA vs ASSISTANT DIRECTOR