Bombay High Court: Bribe Money Qualifies as ‘Proceeds of Crime’ under PMLA

The Bombay High Court held that accepting a bribe can constitute “proceeds of crime” under the Prevention of Money Laundering Act, 2002 (PMLA).

The Court dismissed a petition filed by former municipal official Y. Shiva Reddy challenging his arrest by the Enforcement Directorate in a money-laundering case linked to illegal construction approvals.

It observed that once a person receives a bribe, he acquires property derived from criminal activity, which falls within the definition of “proceeds of crime.”

The Court also ruled that a belated challenge to arrest cannot be used to bypass the stringent bail conditions under Section 45 PMLA.

[Y. Shiva Reddy v. Directorate of Enforcement & Anr.]