SC Holds That Unless Money is Handed Over With Intent of Bribing, Such Money Would Not Assume Character of ‘Proceeds of Crime’ under PMLA

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Dec 31, 2022

SC Holds That Unless Money is Handed Over With Intent of Bribing, Such Money Would Not Assume Character of ‘Proceeds of Crime’ under PMLA

In Directorate of Enforcement v. Padmanabhan Kishore,^[1] the Supreme Court (‘SC’) held that as “long as the amount is in the hands of a bribe giver and till it does not get impressed with the requisite intent and is actually handed over as a bribe, it would be untainted money. If the money is handed over without such intent, it would be a mere entrustment”. The SC further held that the crucial part is the requisite intent to hand over the amount as bribe, which intent must necessarily be antecedent or prior to the moment the amount is handed over. By handing over money with the intent of giving bribe, such person will be assisting or will knowingly be a party to an activity connected with the proceeds of crime.

[1] Directorate of Enforcement v. Padmanabhan Kishore, 2022 SCC OnLine SC 1490.

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