Rajasthan High Court Upholds Cognizance in Money Laundering Case Against Public Servant

Court rejects plea for prosecution sanction under Bharatiya Nagarik Suraksha Sanhita, 2023, in case involving unaccounted cash and gold bars.

In a significant ruling, the Rajasthan High Court, Jaipur Bench, upheld the cognizance taken against Ved Prakash Yadav, a public servant, under the Prevention of Money Laundering Act, 2002. The case involved allegations of possession of unaccounted cash amounting to Rs. 2,31,15,000 and a gold bar worth Rs. 61,00,000 found at Yadav's residence. 

The petitioner challenged the order dated March 21, 2024, by the Special Judge, PMLA and CBI Cases No.3, Jaipur Metro-I, arguing that cognizance was taken without the requisite prosecution sanction under Section 218 of the Bharatiya Nagarik Suraksha Sanhita, 2023. The petitioner contended that as a public servant, prosecution could not proceed without departmental sanction.

Representing Yadav, counsel cited various judgments, including those from the Supreme Court and High Courts, asserting that the absence of sanction rendered the proceedings invalid. However, the counsel for the Directorate of Enforcement countered that the alleged act did not pertain to Yadav's official duties, thereby negating the need for such sanction.

Justice Anoop Kumar Dhand, presiding over the case, emphasized that Section 218 of the Bharatiya Nagarik Suraksha Sanhita applies only to acts performed in the official discharge of duties. Since the possession of unaccounted wealth was unrelated to Yadav's official functions, the court concluded that prior sanction was not necessary.

The court dismissed the petition, affirming the validity of the cognizance order. It clarified that observations made were strictly for assessing the order's validity, and Yadav was free to present his defense during the trial. The trial court was instructed to consider the defense without being swayed by the High Court's remarks.

Bottom Line:

Alleged act of possession of unaccounted money and gold bars does not fall within the purview of "an act performed in official discharge of duties" by a public servant under Section 218 of Bharatiya Nagarik Suraksha Sanhita, 2023.

Statutory provision(s): Prevention of Money Laundering Act, 2002 Sections 3/4, Bharatiya Nagarik Suraksha Sanhita, 2023 Section 218

Ved Prakash Yadav v. Directorate of Enforcement, (Rajasthan)(Jaipur Bench) : Law Finder Doc Id # 2800060