Court dismisses Criminal Original Petition, stating prima facie case warrants trial. Observations not to impact proceedings.

The Court dismissed the Criminal Original Petition, stating that a prima facie case against the petitioners necessitates a trial. The observations made are solely for the purpose of refusing to exercise powers under Section 482 Cr.P.C. and should not influence further proceedings.

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Issues Involved:
1. Quashing of proceedings under Section 482 of Cr.P.C.
2. Prima facie case under Section 3 of the Prevention of Money Laundering Act (PMLA).
3. Involvement of petitioners in the management and financial affairs of the company.
4. Applicability of the exceptions for quashing complaints as laid down in Bhajan Lal's case.

Summary:

Issue 1: Quashing of proceedings under Section 482 of Cr.P.C.
The petitioners sought to quash the proceedings on the grounds that they were not involved in the management or financial affairs of the company. The Court held that when the complaint establishes a prima facie case, it is impermissible to quash the complaint under Section 482 Cr.P.C. The Court emphasized that such powers should be exercised in the rarest of rare cases, as per the guidelines in Bhajan Lal's case.

Issue 2: Prima facie case under Section 3 of PMLA
The Enforcement Directorate registered an ECIR based on the CBI's FIR alleging offences under Sections 120-B, 406, 420, 468 & 471 of IPC. The petitioners' statements indicated their possible involvement in money laundering. The Court noted that the statements made by the petitioners under Section 50 of PMLA indicate the possible commission of an offence under Section 3 of PMLA, thus making out a prima facie case.

Issue 3: Involvement of petitioners in the management and financial affairs of the company
The petitioners argued that they were not involved in the company's management. However, their statements revealed direct or indirect nexus with the company. The Court observed that the petitioners' involvement in the management of the company requires a full-fledged trial to establish the facts.

Issue 4: Applicability of the exceptions for quashing complaints as laid down in Bhajan Lal's case
The Court referred to the exceptions for quashing complaints under Section 482 Cr.P.C., as laid down in Bhajan Lal's case. It found that the grounds raised by the petitioners do not fall under any of these exceptions. The material on record makes out a prima facie case for implicating the petitioners under PMLA.

Conclusion:
The Court dismissed the Criminal Original Petition, stating that the prima facie case against the petitioners necessitates a trial. The observations made are solely for the purpose of refusing to exercise powers under Section 482 Cr.P.C. and should not influence further proceedings.

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