Cross-examination in PMLA summary proceedings is not automatic and requires a proper evidentiary basis before the Adjudicating Authority.

Cross-examination in summary proceedings under the Prevention of Money Laundering Act, 2002 is not an automatic right and may be allowed only on a proper showing. The Adjudicating Authority acts under a statutory procedure and the Adjudicating Authority (Procedure) Regulations, 2013, so the request must be supported by an actual witness examination or deposition. Where no statement of the proposed Enforcement Directorate witness had been recorded before the Adjudicating Authority or in the search and seizure process, the foundation for cross-examination was absent. The reverse-burden framework under section 24 also meant cross-examination could not be used to shift the statutory burden of proof, so the refusal of the prayer was upheld.

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Issues: Whether the appellant was entitled to cross-examine the Enforcement Directorate officer in the proceeding before the Adjudicating Authority.

Analysis: The right of cross-examination is part of natural justice, but in proceedings under the Prevention of Money Laundering Act, 2002 it is not an automatic or universal entitlement. The Adjudicating Authority functions in a summary proceeding, and its procedure is regulated by the statute and the Adjudicating Authority (Procedure) Regulations, 2013. Cross-examination may be allowed only where a proper case is made out, and it ordinarily presupposes that the proposed witness has given examination-in-chief or has otherwise deposed as a witness. The requested cross-examination here was also seen against the reverse-burden framework under section 24 of the Act, under which the appellant could not use cross-examination to shift the statutory burden of proof. As no statement of the proposed witness had been recorded before the Adjudicating Authority or in the search and seizure process, the essential basis for cross-examination was absent.

Conclusion: The prayer for cross-examination was rightly refused and the challenge to the impugned order failed.

Ratio Decidendi: In summary proceedings under the Prevention of Money Laundering Act, 2002, cross-examination is not a matter of right and can be permitted only where a witness has been examined and a specific case for such exercise is made out.

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