A mere agreement for sale and receipt of advance consideration would not confer any title over the property to the buyer, the mortgaged property cannot be characterized as proceeds of crime under PMLA, 2002 – Indian Bank Vs. Sub Registrar, Office of the Sub Registrar and Ors. – Kerala High Court

In this case, Rs.7,00,00,000/- from the proceeds of crime was given as advance by a person to respondents 3 and 4 to purchase the mortgaged property, and the sale did not take place. Thus, the person against whom proceedings under PMLA were initiated did not acquire any right, title or possession over the property. A mere agreement for sale and receipt of advance consideration would not confer any title over the property to the buyer. For all these reasons, the mortgaged property cannot be characterized as proceeds of crime.

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