{"id":1196,"date":"2025-07-28T19:35:15","date_gmt":"2025-07-28T14:05:15","guid":{"rendered":"https:\/\/tarungaur.in\/mediacenter\/?p=1196"},"modified":"2026-02-07T17:37:23","modified_gmt":"2026-02-07T12:07:23","slug":"supreme-court-stays-pmla-trial-without-predicate-offence-chargesheet","status":"publish","type":"post","link":"https:\/\/tarungaur.in\/mediacenter\/supreme-court-stays-pmla-trial-without-predicate-offence-chargesheet\/","title":{"rendered":"Supreme Court&#8217;s Stay on PMLA Trial Without Predicate Chargesheet: A Timely Relief in Line With Justice"},"content":{"rendered":"<p data-start=\"509\" data-end=\"791\">In a significant step forward for clarity in the interpretation of the Prevention of Money Laundering Act (PMLA), the Hon\u2019ble Supreme Court recently stayed the PMLA trial against four accused in a matter where no chargesheet had been filed in the predicate offence for over 7 years.<\/p>\n<p data-start=\"793\" data-end=\"1026\">This development strengthens the judicial reasoning that a money laundering trial cannot proceed in a vacuum, especially where foundational allegations under the scheduled offence (predicate offence) remain unproven or unestablished.<\/p>\n<h3 data-start=\"1028\" data-end=\"1048\">Case Background:<\/h3>\n<p data-start=\"1050\" data-end=\"1473\">In <em data-start=\"1053\" data-end=\"1103\">S. Srividhya &amp; Ors. vs Assistant Director &amp; Anr.<\/em>, SLP(Crl) No. 10113-10115\/2025, the petitioners were family members of the erstwhile Chairman and Managing Director of Cethar Limited. An FIR was lodged by the CBI back in 2018 under Sections 120B, 406, 420, 468, and 471 IPC, on a complaint by Indian Bank. Based on this FIR, the Enforcement Directorate (ED) registered an ECIR and initiated proceedings under the PMLA.<\/p>\n<p data-start=\"1475\" data-end=\"1812\">However, notably, the petitioners were neither named in the predicate FIR nor shown to be in possession of proceeds of crime. They claimed to have no involvement in the company\u2019s decision-making processes and yet faced continued prosecution under the PMLA \u2014 despite no chargesheet being filed in the scheduled offence even after 7 years.<\/p>\n<p data-start=\"1814\" data-end=\"1931\">The Supreme Court, while staying the trial against the petitioners, has issued notice to both the ED and Indian Bank.<\/p>\n<h3 data-start=\"1933\" data-end=\"1963\">Why This Judgment Matters:<\/h3>\n<p data-start=\"1965\" data-end=\"2263\">This decision is not just a relief to the accused but a reaffirmation of procedural fairness. Continuing prosecution under the PMLA without a crystallized predicate offence can have grave constitutional and legal implications. The Supreme Court has previously leaned in this direction \u2014 as seen in:<\/p>\n<ul data-start=\"2265\" data-end=\"2589\">\n<li data-start=\"2265\" data-end=\"2432\">\n<p data-start=\"2267\" data-end=\"2432\"><strong data-start=\"2267\" data-end=\"2314\">Bharathi Cement Corporation Pvt. Ltd. v. ED<\/strong>: Telangana High Court held that PMLA proceedings should be stayed pending the outcome of the predicate offence trial.<\/p>\n<\/li>\n<li data-start=\"2433\" data-end=\"2589\">\n<p data-start=\"2435\" data-end=\"2589\"><strong data-start=\"2435\" data-end=\"2478\">S. Martin v. Directorate of Enforcement<\/strong>: Where the Supreme Court initially stayed the PMLA trial and later allowed it to proceed only with safeguards.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"2591\" data-end=\"2686\">These cases reflect a maturing jurisprudence that upholds due process under the PMLA framework.<\/p>\n<h3 data-start=\"2688\" data-end=\"2730\">Final Thoughts by Advocate Tarun Gaur:<\/h3>\n<p data-start=\"2732\" data-end=\"3113\">As an advocate specializing in money laundering litigation, I see this judgment as a much-needed reaffirmation of the importance of foundational proceedings in PMLA cases. The Supreme Court\u2019s decision provides a meaningful check against misuse and arbitrary prosecution \u2014 particularly against individuals drawn into proceedings merely by familial or distant corporate associations.<\/p>\n<hr data-start=\"3115\" data-end=\"3118\" \/>\n<p data-start=\"3120\" data-end=\"3350\"><strong data-start=\"3120\" data-end=\"3350\">If you&#8217;re facing prosecution under PMLA or white-collar crime investigations, consult with Advocate Tarun Gaur \u2013 Best Advocate in Dwarka, practicing in Delhi High Court and specializing in financial crimes and arbitration law.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a significant step forward for clarity in the interpretation of the Prevention of Money Laundering Act (PMLA), the Hon\u2019ble [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1197,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[11,12],"tags":[71,117,118,52,27,328,327,324,56,322,321,326,329,323,325],"class_list":["post-1196","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-commercial-litigation","category-criminal-law","tag-advocate-tarun-gaur","tag-arbitration-lawyer-in-dwarka","tag-best-advocate-in-dwarka","tag-criminal-law","tag-delhi-high-court","tag-economic-offences","tag-ed-cases","tag-financial-crime","tag-legal-updates","tag-money-laundering","tag-pmla","tag-pmla-jurisprudence","tag-predicate-offence","tag-supreme-court-judgments","tag-white-collar-crime"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SC Stays PMLA Trial Without Predicate Offence Chargesheet<\/title>\n<meta name=\"description\" content=\"Supreme Court stays PMLA trial as no chargesheet filed in the predicate offence for 7 years; 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