TaxTMI 
TaxTMI 
2022 (11) TMI 1280
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.... revision is whether quashing of a regular case of "scheduled offence" shall automatically quashed the subsequent case registered under the provisions of PMLA Act. In a nutshell the fact of the case is that on the basis of a complaint made by the Vigilance Officer of the Union bank of India about the irregularities in the advance account of the petitioners of the said bank, a regular case No. RCBSK2009E0008 dated 11^th September 2009 was registered at P.S.CBI BS&FC Kolkata for alleged offences punishable U/s 120B/420/409 of IPC and U/s 13 of Prevention of Corruption Act. The Enforcement Directorate/ Respondent No. 1 on the basis of the aforesaid FIR registered ECLR No. 41/2009/KOL/PMLA dated 23^rd December 2009 and in that initiated investigation under the provisions of PMLA. After conclusion of investigation the P.S.CBI BS&FC Kolkata filed charge sheet before the Learned 14th MM Kolkata against the petitioners and 5 others for offences punishable U/s 120B read with Section 420 of IPC. In parallel to that Criminal Proceeding the Union Bank of India proceeded to Ld. Debt Recovery Tribunal Kolkata against the petitioners for recovery of its due aggregating of Rs.- 15,57,7....
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.... by the Union Bank of India. Hon'ble DRT Kolkata vide its order dated 27th October 2016 recorded the terms of settlement and allowed the defendants therein to pay the settled amount in satisfaction of the claim made by the Union Bank of India. The enforcement Directorate, respondent No. 1 filed a complaint U/s 45 of PMLA (ML Case No.-2 of 2016) against the present petitioner and proforma respondents on 10th of November 2016 before the Learned Chief Judge City Sessions Court Calcutta. The said complaint records the offences U/s 420/120B IPC read with Section 13 Prevention of Corruption Act as noted in aforesaid FIR RCBSK2009E0008 dated 11th September 2009 being "scheduled offence'' within the meaning of PMLA. Learned City Sessions Court while observing that RCBSK2009E0008 dated 11th September 2009 lead to the registration of ECIR No. 41/2009/KOL/PMLA dated 23^rd December 2009, for the purposes of investigation under the PMLA,2002 was pleased to take cognizance of the offence U/s 4 of the PMLA and had issued processes to the petitioners and others in the said complaint. On the strength of settlement before the Learned DRT Kolkata with the Union Bank of India, the present petiti....
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....of public money was involved in this case and the petitioners have deliberately committed the crime for which the proceeding under PMLA was initiated. He further argued that Hon'ble Supreme Court in different cases specifically directed that the High Court should not exercise its jurisdiction under 482 Cr.P.C. in economic offences. In support of his contention he cited a judgment of Telengana High Court passed in Ishoonarang & Ors. Vs. State of Telengana & Ors. Heard the Ld. Advocates perused the petition as well as decisions by Hon'ble High Court. In Vijay Madanlal Chowdhury & Ors. Vs. Union of India and Ors. Hon'ble Apex Court (three Judges Bench has formulated that - Para 187 (v) (d) The offence under Section 3 of the 2002 Act is dependent on illegal gain of property as a result of criminal activity relating to a scheduled offence. It is concerning the process or activity connected with such property, which constitutes the offence of money-laundering. The Authorities under the 2002 Act cannot prosecute any person on notional basis or on the assumption that a scheduled offence has been committed, unless it is so registered with the jurisdictional police and/or pend....
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....the domain of a mere dispute between petitioner No. 4 and the above said banks. The mere fact that the banks which are already under stress to clear the NPAs from their books accepted the OTS, will not absolve the petitioners from criminal charges. The Apex Court in the above said judgments categorically held that in economic offences, it is not proper for the High Court to exercise its inherent powers under Section - 482 of the Cr.P.C to quash the FIRs/ charge sheets. It is nothing but stalling investigation/ enquiry initiated by the Authorized Officer under the provisions of PMLA. The above finding of Hon'ble Telengana High Court is quite justifiable; but in considering this present facts and circumstances of the case and by virtue of ratio laid down in Vijay Madanlal Chowdhury the findings has no leg to stand. Let me consider whether the offence under PMLA can stand alone by virtue of the provisions of law has laid in the statute itself as well as by the dictum of Hon'ble Apex court in Vijay Madanlal Chowdhury. The offence of money laundering has been defined U/s 3 of PMLA 2002 Section 3 is read as follows- (3) It shall come into force on such date as the Centr....