TaxTMI 
TaxTMI 
2014 (2) TMI 1275
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd violation of Articles 14 and 21 of the Constitution of India and violation of Section 50 of Prevention of Money Laundering Act, by holding that the respondents 2 and 3 have no authority or jurisdiction to issue summons and consequently set aside the same. 2. Petitioner was a Director of M/s.Maithri Plantations and Horticulture Private Limited and M/s. Maithri Realtors India Private Limited. Petitioner avers that he negotiated with the companies and resigned from both the companies. Accordingly, an agreement was executed on 02.11.2012 with the concerned Managing Directors and Directors of both the companies separately. Petitioner approached the Registrar of Companies and got the necessary entries in the registers of companies. The petiti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....perty if the conditions provided therein are fulfilled. It is, thus, contended that even without final report as mandated by Section 173 of Cr.P.c., or filing of complaint before the Magistrate or Court, property can be seized. It is further contended that according to Section 50(2) of the Act, 2002, third respondent has power to summon any person whose attendance he considers necessary whether to give evidence or to produce any records during the course of any investigation or proceeding under the Act. Petitioner was the Director of M/s.Sri Nakshthra Builders and Developers India Private Limited, during the relevant time and, therefore, petitioner was summoned only to ascertain the truth in the process of investigation into the allegations....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... No.11459 of 2011, the order impugned herein is liable to be set aside and petitioner cannot be summoned for enquiry until and unless final report is filed in the crimes registered before the respective police stations. 7. Learned senior counsel further contended that there is a difference in terminology used in sub section (1) to section 50 and in sub-sections 2 and 3 and powers under sub section (1) of Section 50 are relatable to power under Section 13 and have same powers as vested in civil court under the Code of Civil Procedure. Section 13 vests power exclusively in the director to exercise power of enquiry and in the present case, such power is not exercised by the director. 8. Learned standing counsel submitted that as the competen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ting officer under Act, 2002 to issue summons in exercise of powers under Section 50(2) and (3) of the Act, 2002 and the writ petition is not maintainable against the issuance of such summons. 10. The facts which are not in dispute are that petitioner was a Director of two companies registered under the Companies Act. Several crimes are registered against these two companies in various police stations in the State and in some of the crimes, petitioner was also shown as accused. Assuming that prima facie the allegations attract the provisions of Act, 2002, and basing on the crime registered against the petitioner and others, the competent authority, under the Act, has registered ECIR and has taken up investigation. In the process of investi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... confiscation of property in the possession of a person not charged of having committed a scheduled offence, this contention in our considered view is wholly misconceived after enactment of the second proviso. The second proviso enjoins that any property of any person may be attached if the specified authority therein has reason to believe. the non obstante clause in the second proviso clearly excludes Clause (b) of Sec 5(1). It is this clause (b) that incorporates the requirement that the proceeds of crime should be in possession of a person who is charged of having committed a scheduled offence, for initiating proceedings for attachment and confiscation. If the provisions of the Section 5(1)(b) are to be eschewed for ascertaining the mean....