2021 (2) TMI 1295 - HC - Money Laundering

Court Evaluates Retrospective Application of PMLA, Petitioners Challenge Supplementary Complaint

M/s. TDI Infrastructure Ltd., New Delhi and Another Versus Union of India and Others

The court addressed the challenge to certain provisions of the Prevention of Money Laundering Act, 2002 (PMLA), focusing on the retrospective application ... Purchase of notified land from the villagers at the meagre price - obtaining fraudulent licenses for colonization in connivance with other accused / bureaucrats / public servants - Sections 420, 465, 467, 471 and 120-B of IPC and under Section 13 of the Prevention of Corruption Act, 1988 - HELD THAT:- Notice of motion for 31.03.2021. Mr. Satya Pal Jain, Additional Solicitor General of India, assisted by Mr. Sanjay Vashisth, Sr. Panel Counsel, UOI, who is on advance notice, accepts notice on behalf of the respondent(s)-UOI. Issues:Challenge to vires of Explanation (i) to Section 3 and Explanation (ii) after Clause (d) in sub-Section (1) of Section 44 of the PMLA, 2002; Challenge to supplementary complaint dated 05.06.2020 and Summoning Order dated 30.06.2020; Application of PMLA provisions retrospectively; Interpretation of scheduled offences under PMLA; Judicial precedents on similar cases.Analysis:The judgment involves a challenge to certain provisions of the Prevention of Money Laundering Act, 2002 (PMLA) and the legality of a supplementary complaint and summoning order. The petitioners argue that the predicate offences they are accused of predate the inclusion of those offences as scheduled offences under the PMLA in 2009. They rely on a judgment from the Andhra Pradesh High Court and a Delhi High Court order to support their contention that the PMLA cannot be applied retrospectively to their case. The petitioners contest the summoning order, claiming that the trial court incorrectly confirmed a provisional attachment order against them. The matter is also pending before the Supreme Court for adjudication on the vires of the challenged provisions.The primary issue in this case is the retrospective application of the PMLA provisions to the alleged offences committed by the petitioners before those offences were designated as scheduled offences under the PMLA in 2009. The petitioners argue that since the predicate offences occurred prior to the inclusion in the schedule, the PMLA cannot be applied retroactively. They cite a judgment from the Andhra Pradesh High Court and a Delhi High Court order to support their position.Another crucial aspect of the judgment is the challenge to the supplementary complaint and the summoning order issued against the petitioners. The petitioners contest the summoning order, claiming that the trial court erroneously confirmed a provisional attachment order against them. They argue that the trial court's statement regarding the confirmation of the attachment is inaccurate.Furthermore, the judgment highlights the legal interpretation of scheduled offences under the PMLA and the implications of applying the Act retrospectively. The petitioners' arguments focus on the timing of the alleged predicate offences and the subsequent inclusion of those offences as scheduled offences under the PMLA. They seek to establish that the PMLA cannot be enforced retroactively in their case.Overall, the judgment delves into the complexities of applying anti-money laundering laws retrospectively, citing judicial precedents and pending Supreme Court adjudication on the vires of the challenged PMLA provisions. The court has scheduled further proceedings to address the issues raised by the petitioners, including the framing of charges, while keeping the matter in abeyance until the next hearing date.