Prima facie challenge to PMLA cognizance secured interim protection and stay of complaint proceedings.

A challenge to arraignment in a PMLA complaint and the cognizance order raised a prima facie case where the petitioners were not shown as accused in the connected scheduled-offence matters and the complaint, as against them, lacked a clear basis. The High Court noted that the cognizance order was brief and did not show meaningful consideration of the complaint in relation to the petitioners. Pending notice and objections, the Court granted interim protection and stayed further proceedings in the complaint against the petitioners until the next date of hearing.

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Issues: Whether the petitioners had made out a prima facie case for interim protection against further proceedings in the complaint under the Prevention of Money Laundering Act, 2002; and whether the proceedings against them should be stayed pending further consideration.

Analysis: The petition challenged the petitioners' arraignment in the complaint and the order taking cognizance, asserting that they were not shown as accused in the connected scheduled-offence cases and that the complaint, insofar as it related to them, lacked a clear basis. The Court found that the challenge disclosed a prima facie case, particularly because the order of cognizance was brief and did not demonstrate any meaningful examination of the complaint as against the petitioners. Pending notice and objections, the Court considered it appropriate to protect the petitioners from immediate coercive consequence.

Conclusion: Interim protection was granted and the proceedings in the complaint against the petitioners were stayed till the next date of hearing.

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