Definition
Predicate offence.
Offence which generates proceeds of crime under PMLA.
Statutory Definition
PMLA 2002.
Etymology & Origin
Derived from the legislative practice of listing specific crimes in a 'Schedule' attached to an Act, designating them as trigger offences for the application of that Act.
Full Legal Analysis
In the context of the Prevention of Money Laundering Act, 2002 (PMLA), a Scheduled Offence (often internationally called a predicate offence) is the underlying criminal act that generates illegal wealth or 'proceeds of crime'.
Money laundering is not a standalone crime; it is entirely dependent on the existence of this illicit wealth. The PMLA lists these specific offences in its Schedule. They range from IPC offences like murder, extortion, and cheating to specialized offences under the NDPS Act, the Prevention of Corruption Act, and the Wildlife Protection Act.
The legal dependency is absolute: if a person is acquitted of the scheduled offence in the primary trial (e.g., acquitted of corruption by the CBI court), the corresponding money laundering case (handled by the ED) collapses automatically, as there are no 'proceeds of crime' in the eyes of the law.
The Supreme Court unequivocally held that if the accused is discharged or acquitted of the scheduled offence, proceedings under the PMLA cannot continue.
For defence counsel facing parallel investigations by local police/CBI and the ED, quashing the primary FIR for the scheduled offence is the most effective strategy to defeat the PMLA proceedings.
This Term in Indian Statutes
Prevention of Money Laundering Act, 2002, 2002
"Defines scheduled offence by referencing the Schedule to the Act."
Establishes the jurisdictional trigger required for the ED to initiate money laundering proceedings.
