'Proceeds of crime' as defined under Section 2(u) of PMLA means:

Section 2(u) of PMLA defines 'proceeds of crime' as any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence or the value of any such property. Two key elements are: (1) the property must be connected to criminal activity (not civil wrongs), and (2) the criminal activity must relate to a scheduled offence under the PMLA Schedule. The definition covers both direct and indirect derivation - meaning even property obtained through layers of transactions can qualify. It also includes the value of such property, not just the property itself. This broad definition is designed to prevent laundering through substitution of assets.