2018 (1) TMI 551 - HC - Money Laundering

Division Bench reserves order on constitutional validity of PMLA provision, parties to submit written arguments

The Division Bench reserved orders on the constitutional validity of the second proviso to Section 5(1) of the Prevention of Money Laundering Act, 2002, ... Constitutional validity of the second proviso to Section 5 (1) of PMLA - Held that:- It is clarified that this Bench will not be examining the merits of the show cause notices or orders of adjudicating authority in the individual cases. That will be dealt with by the respective roster Benches. Orders reserved on the aspects referred to in para 1.Both the parties shall file their respective written notes of arguments, on the above aspect, including the relevant case law, within ten days. Issues:Constitutional validity of the second proviso to Section 5(1) of the Prevention of Money Laundering Act, 2002 and interpretation of certain provisions.Analysis:The Division Bench focused on the constitutional validity of the second proviso to Section 5(1) of the Prevention of Money Laundering Act, 2002, and the interpretation of its provisions. The Bench made it clear that it would not delve into the merits of the show cause notices or orders of the adjudicating authority in the individual cases, leaving that to the respective roster Benches. The orders were reserved specifically on the aspects related to the constitutional validity and interpretation of the provisions. Both parties were directed to submit their written notes of arguments, along with relevant case law, within ten days. In the meantime, the interim orders were to remain in effect. Finally, a copy of the order was to be provided Dasti under the Court Master's signature.