In Brief
The Directorate of Enforcement filed money laundering complaints against two public servants—Bibhu Prasad Acharya (Vice Chairman and Managing Director of a state corporation) and Adityanath Das (Principal Secretary)—for alleged offences under the Prevention of Money Laundering Act (PMLA), 2002. The respondents sought quashing on the ground that prior sanction under Section 197(1) of the Criminal Procedure Code (CrPC) was necessary. The High Court agreed and quashed cognizance. The Supreme Court held that Section 197(1) CrPC applies to PMLA proceedings via Section 65 of the PMLA, and is not overridden by Section 71's overriding clause. Cognizance without sanction was therefore improper. The Court dismissed the appeal, clarifying that the respondents' orders stand quashed but the appellant may seek sanction and renew proceedings.
The lawyer headnote and full judgment text are available to registered users.