Proceeds of Crime and Scheduled Offences Under the PMLA: Definition, the Schedule, and the Nexus Requirement
Two definitions decide every ED case: “proceeds of crime” and “scheduled offence.” If the property does not derive from a scheduled offence, there is no money laundering — no matter how suspicious the money looks. This guide explains the three limbs of Section 2(1)(u), the structure of the Schedule, and the nexus requirement the Supreme Court has enforced in Vijay Madanlal, Pavana Dibbur, and Seema Garg (with judgment links) — plus the practical defence angles I use to break the chain in practice.
