Learned Senior Counsel, Ms. Meenakshi Arora contended, Section 120­B of IPC alone, in absence of any other scheduled offence, cannot sustain a charge under The Prevention of Money-Laundering Act, 2002. Learned Additional Solicitor General argued, as Section 120­B of IPC is included in Part A to Schedule, even if allegation is of making a criminal conspiracy to commit an offence which is not a part of Schedule, such offence becomes a scheduled offence.

Many offences under Chapter XVII of IPC are not included in Parts A and B. They become scheduled offences only if same have cross-­border implications. Thus, offences of ‘dishonest misappropriation of property’ or ‘criminal breach of trust’ or ‘theft’ can become a scheduled offence, provided they have cross-­border implications. Even if same have no cross-border implications, if argument of Learned Additional Solicitor General is accepted, a conspiracy to commit any offence under any penal law, which is capable of generating proceeds, can be converted into a scheduled offence by applying Section 120B of IPC. This cannot be Legislature’s intention. If we accept such an interpretation, statute may attract vice of unconstitutionality for being manifestly arbitrary.

– Hon’ble Justice Abhay S. Oka, Pavana Dibbur v. Directorate of Enforcement, [Criminal Appeal No. 2779 of 2023].