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        Money Laundering

        2023 (9) TMI 238 - HC - Money Laundering

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        Court orders Principal Judge to reconsider MLA's bail application promptly, setting aside previous rejections. The Court directed the Principal Judge, Chennai, to withdraw the case from the Special Court-I and entertain the bail application filed by the sitting ...
                          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.

                              Court orders Principal Judge to reconsider MLA's bail application promptly, setting aside previous rejections.

                              The Court directed the Principal Judge, Chennai, to withdraw the case from the Special Court-I and entertain the bail application filed by the sitting MLA. The orders returning the application by both courts were set aside, instructing the Principal Judge to decide on the bail application promptly. The Registry was directed to return the case papers to the petitioner's counsel.




                              Issues Involved:
                              1. Jurisdiction of the Court to entertain the bail application.
                              2. Transfer of case papers to the appropriate court.
                              3. Compliance with Section 43(1) of the Prevention of Money Laundering Act, 2002 (PMLA Act).

                              Summary:

                              Jurisdiction of the Court to entertain the bail application:
                              The petitioner, a sitting MLA, was arrested and filed a bail application before the Special Court-I for the Trial of Cases relating to MPs and MLAs. The Special Court-I returned the application, stating it was not notified under Section 43 of the PMLA Act, directing it to be filed before the Principal Judge, Chennai. The Principal Judge also returned the application, directing it back to the Special Court-I. This led to the petitioner filing the present original petition.

                              Transfer of case papers to the appropriate court:
                              The Principal Judge, Chennai, had transferred the case papers to the Special Court-I for Trial of Cases against MLAs and MPs. However, the Special Court-I returned the bail application, citing lack of notification under Section 43 of the PMLA Act. The Principal Judge, Chennai, reiterated that the case records were made over to the Special Court-I, leading to confusion about the appropriate court for the bail application.

                              Compliance with Section 43(1) of the PMLA Act:
                              Section 43(1) of the PMLA Act empowers the Central Government, in consultation with the Chief Justice of the High Court, to designate Special Courts for trial of offenses under the Act. The Central Government had issued a notification on 05.02.2016 designating the Principal District Judge, Chennai, as a Special Court for such offenses. The Court noted that the transfer of the case to the Special Court-I was not in consonance with Section 43(1) of the PMLA Act and the notification.

                              Judgment:
                              The Court directed the Principal Judge, Chennai, to withdraw the made-over case from the Special Court-I and entertain the bail application. The impugned return orders by both courts were set aside. The Principal Judge was instructed to number the bail application and decide it at the earliest. The Registry was directed to return the original bail application case papers to the petitioner's counsel. The Criminal Original Petition was disposed of with these directions.
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                              ActsIncome Tax
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