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        Money Laundering

        2022 (1) TMI 1428 - HC - Money Laundering

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        Section 482 cannot be used to quash an ECIR, as it is an administrative step outside criminal court proceedings. Section 482 of the Code of Criminal Procedure, 1973 is confined to orders and proceedings under the Code before a criminal court, and cannot be invoked to ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                            Section 482 cannot be used to quash an ECIR, as it is an administrative step outside criminal court proceedings.

                            Section 482 of the Code of Criminal Procedure, 1973 is confined to orders and proceedings under the Code before a criminal court, and cannot be invoked to quash an ECIR recorded by the Enforcement Directorate. An ECIR is an administrative tool used to commence investigation under the Prevention of Money Laundering Act, 2002, not an FIR or a proceeding pending before a criminal court. The petition was therefore held not maintainable for quashing the ECIR.




                            Issues: Whether a criminal original petition under Section 482 of the Code of Criminal Procedure, 1973 is maintainable for quashing an ECIR registered by the Enforcement Directorate.

                            Analysis: The inherent powers preserved by Section 482 are available to give effect to orders under the Code, to prevent abuse of the process of a court, or to secure the ends of justice in relation to proceedings before a criminal court. An ECIR is not an FIR registered under the Code, but an administrative form used by the Enforcement Directorate to commence investigation under the Prevention of Money Laundering Act, 2002. As the ECIR is not a proceeding under the Code and is not a matter pending before a criminal court, it does not fall within the field of judicial review under Section 482. The earlier decisions cited did not decide the maintainability issue and were therefore not relied upon.

                            Conclusion: The petition under Section 482 of the Code of Criminal Procedure, 1973 is not maintainable for quashing the ECIR.


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                            ActsIncome Tax
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