TaxTMI 
TaxTMI 
TaxTMI 
2022 (8) TMI 613
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....lude the two month period from the computation of 180 days under Section 5(3) of the Prevention of Money Laundering Act, 2002 (for short, 'the Act'). 3. Heard Sri Avinash Desai, learned counsel for the petitioners, Sri Anil Prasad Tiwari, learned counsel appearing for 2nd respondent and learned Government Pleader for Home appearing for 3rd respondent. Perused the record. 4. The undisputed facts in the present writ petitions are as follows:- The Central Crime Station (CCS), Hyderabad had registered a case in Cr.No.78 of 2021 against M/s Karvy Stock Broking Limited (for short, 'KSBL') to which C.Pardhasarathy, is the Chairman, the 6th petitioner herein and its Directors and FIR No.86 of 2021 against M/s Karvy Comtrade Limited and its Directors for the offence under Section 420 of IPC. The allegations leveled against them are that they have not repaid loans which are classified as fraud accounts. The Investigation under the provisions of the Act was initiated vide File No. ECIR/ HYZO/14/2021, dated 19.05.2021 by 2nd respondent. Several other FIRs registered in respect of the case were also taken on record. The said C.Parthasarathy, was in judicial custody from 19.08.2021 to 25.06.2....
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....the same. ii) Several crimes were registered against the petitioners companies, Directors etc., and they have obtained bail in the said crimes. iii) The Courts concerned have granted bail to them on imposition of certain conditions including the condition of reporting before the Investigating Officers concerned on a particular day of the week. Therefore, they have to appear before the Investigating Officers in compliance of the said orders. They have to appear before the Investigating Officer weekly four days including one day before the Investigating Officer in Bangalore. iv) The Chairman of Karvy Group of Companies was released on bail on 25.06.2022, he was hospitalized on the very same day on 15.06.2022 and discharged from the hospital on 30.06.2022. v) His biopsy sample was sent to the Laboratory. vi) He is the main person acquainted with the facts and he has to collect information, prepare reply and submit it to the 1st respondent/Adjudicating Authority. vii) No prejudice would be caused either to 1st respondent or 2nd respondent. 7. The said relief was opposed by the 2nd respondent on the following grounds:- i) The adjudication process before 1st respondent und....
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....9. There is some force in the said arguments of Sri Avinash Desai, learned counsel for the petitioners. There is no dispute that several properties were attached under the subject PAO, dated 08.03.2022. It is also not in dispute that some of the properties were acquired about two decades ago. The petitioners have to collect information and submit effective reply. It is also not in dispute that several documents running into about 5000 pages were furnished to the petitioners along with the show cause notice. They have to go through the same and submit explanation effectively. It is also not in dispute that C.Parthasarathy, Chairman of Karvy Group of Companies is involved in several crimes and he was arrested. He was released on bail only on 25.06.2022. The Courts concerned have imposed several conditions including the condition of his appearance before the Investigating Officer concerned and to cooperate with him by furnishing information/documents as sought by him in concluding investigation. It is also not in dispute that one crime is pending in Bangalore and that he has to appear before the Investigating Officer in the said crime. In proof of his hospitalization from 25.06.2022 a....
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....he petitioners companies, collect information and prepare reply by taking guidance of the Chairman, Karvy Group of Companies. At the same time even to go through the said documents, collect information and prepare reply, certainly, it will take some time. 14. As discussed supra, at the cost of repetition, it is relevant to note that in PAO, dated 08.03.2022, there are several properties and the documents furnished by 1st respondent along with the show cause notice running into 5000 pages. Some of the properties were acquired about two decades ago. Therefore, they have to collect information and submit reply effectively. 15. As rightly contended by Sri Avinash Desai, learned counsel for the petitioners, the attachment will be continued pursuant to the PAO dated 08.03.2022 till 1st respondent/ Adjudicating Authority passes an order in terms of Section 8(3) of the Act. The Adjudicating Authority, on consideration of the entire material available on record either may confirm or raise the attachment Until and unless, the said attachment is confirmed or raised, the PAO dated 08.03.2022 will be continued. No prejudice would be caused to 2nd respondent/ Investigating Agency. 16. No doub....