Predicate offence

A predicate offence, called a scheduled offence in the Prevention of Money-laundering Act, 2002, is the criminal activity that generates the proceeds of crime. Money laundering under the Act is dealing with those proceeds, so there is no money laundering case without a scheduled offence behind it. In Vijay Madanlal Choudhary v. Union of India, decided on 27 July 2022, the Supreme Court treated the offence under section 3 as independent of the predicate case.

The Schedule has two parts. Part A offences have no monetary floor; Part B offences count only where the total value involved is one crore rupees or more. Neither the Central Goods and Services Tax Act, 2017 nor the Income-tax Act, 1961 appears in the Schedule, so a pure evasion allegation does not open a money laundering file. An allegation that invoices were fabricated can, because cheating and forgery, section 447 of the Companies Act, 2013 and section 135 of the Customs Act, 1962 sit in Part A. The position is stated as at 21 September 2026.