Properly constituted Adjudicating Authority to proceed with case under Money Laundering Act

The Court found that the Adjudicating Authority under the Money Laundering Act, 2002 was properly constituted with multiple members, meeting the requirements of Section 6 of the Act. Consequently, the Court directed the authority to proceed with the case, allowing both parties to present their arguments fairly. The Court clarified that it had not expressed any opinion on the case's merits and emphasized that the Adjudicating Authority should decide based on the law. The petition was disposed of, the interim relief was lifted, and the petitioners agreed to appear before the Adjudicating Authority for further proceedings.

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Issues:
1. Composition of the Adjudicating Authority under the Money Laundering Act, 2002.

Analysis:
The petition challenged a show-cause notice issued to the petitioners by the Adjudicating Authority under the Money Laundering Act, 2002. The petitioners contended that the Adjudicating Authority was not properly composed as required by Section 6(1) of the Act, as it had only one member, rendering it corum non judice. The Court had previously granted ad-interim relief in a similar case, halting further proceedings by the Adjudicating Authority.

The respondent authority later informed the Court that the Adjudicating Authority had been duly constituted with multiple members appointed in accordance with Section 6 of the Act. The government had appointed members from various backgrounds, including law and administration, ensuring compliance with the Act's requirements. The Court clarified that the provisional attachment would not expire during the pendency of the petition, maintaining the status quo.

With the Adjudicating Authority now properly constituted, the Court directed the authority to proceed with the case, giving both parties a fair opportunity to present their arguments. The Court explicitly stated that it had not expressed any opinion on the merits of the case and emphasized that the Adjudicating Authority should decide the matter based on its merits and in accordance with the law. The petition was disposed of accordingly, with the interim relief vacated, and the petitioners agreed to appear before the Adjudicating Authority for further proceedings on the specified date.

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