The Supreme Court of India on Monday quashed a money laundering case against former IAS officer Anil Tuteja and his son Yash in connection with an alleged Rs 2,000 crore liquor scam in Chhattisgarh. 

The apex court, comprising a bench of Justices Abhay S Oka and Ujjal Bhuyan, rendered its decision, emphasizing the absence of proceeds of crime as a crucial factor in their ruling.

The bench observed that the complaint lodged against the two accused individuals was rooted in an offence under the Income Tax Act, which notably does not fall under the category of scheduled offences as defined in the Prevention of Money Laundering Act (PMLA). 

Consequently, the court articulated that in the absence of a scheduled offence, there can be no proceeds of crime as delineated under clause 2(u) of the PMLA. Thus, the offence under PMLA cannot be established in such circumstances.

Furthermore, the bench elucidated on the legal recourse available in such scenarios, stating that if no offence under Section 3 of PMLA is discernible, the competent authority can exercise the powers vested under Section 203 of the Code of Criminal Procedure (CrPC) to dismiss the complaint. Conversely, if a prima facie case is established, recourse to Section 204 of CrPC can be undertaken.

The court's ruling underlines the importance of the existence of a scheduled offence for the application of PMLA provisions, highlighting the statutory framework's precision in delineating the scope of money laundering offences. Additionally, the bench emphasized that in the absence of a scheduled offence, the invocation of PMLA becomes untenable, rendering further legal action redundant.

Addressing the Enforcement Directorate's (ED) stance, Additional Solicitor General SV Raju conveyed the agency's intention to pursue the matter further based on additional material uncovered during the investigation. However, the court refrained from intervening in the prospective proceedings, leaving all contentions open for further adjudication.

It's noteworthy that the court had earlier instructed the ED against coercive measures on the father-son duo in connection with the money laundering probe related to the Chhattisgarh liquor irregularities case, underscoring the importance of due process and fair investigation.

The genesis of the money laundering case lies in a 2022 income tax department chargesheet filed in a Delhi court, wherein the federal agency alleged irregularities in liquor transactions in Chhattisgarh. Specifically, it was alleged that distillers in the state were purportedly involved in collecting bribes linked to liquor transactions overseen by the state entity, CSMCL, alongside alleged off-the-books transactions in country liquor dealings.