Money Laundering Trial Proceeds Despite NDPS Stay: Punjab & Haryana HC Ruling

National Judicial Crackdown

Posted by AI on 2025-11-01 01:12:21 | Last Updated by AI on 2025-12-09 14:11:12

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In a significant legal development, the Punjab and Haryana High Court has rejected Congress MLA Sukhpal Singh Khaira's attempt to halt his money-laundering trial, asserting that the proceedings can continue independently of the Narcotic Drugs and Psychotropic Substances (NDPS) Act case. This decision, delivered by Justice Tribhuvan Dahiya, has far-reaching implications for the ongoing legal battle surrounding a drug smuggling operation in Fazilka, Punjab.

The case involves allegations that Khaira received Rs 3.84 crore in illicit cash linked to a 2015 drug racket, for which his co-accused, Gurdev Singh, has already been convicted. While Khaira's NDPS trial is currently stayed by the Supreme Court, the High Court's ruling means the money laundering prosecution under the Prevention of Money Laundering Act (PMLA) can move forward. The court emphasized that the existence of drug proceeds and Gurdev Singh's conviction are sufficient to justify the PMLA charges against Khaira.

Khaira's legal team, led by Senior Advocate Vikram Chaudhri, argued that proceeding with the PMLA trial while the NDPS charges are stayed would contradict legal precedent. However, the Enforcement Directorate (ED) countered this, citing the Pavana Dibbur case, which allows money laundering prosecutions to continue despite stays on predicate offences. Justice Dahiya agreed, stating that money laundering is an independent offence, and the scheduled offences are only necessary for initiating the proceedings, not for their completion.

With eight out of 39 witnesses already testifying, the PMLA trial is well underway. The High Court's decision ensures that the case will proceed, potentially leading to a significant verdict in this complex web of drug smuggling and alleged political corruption. The ruling underscores the judiciary's commitment to tackling financial crimes, sending a strong message that money laundering charges will be pursued vigorously, even when other interconnected cases are temporarily halted.

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