TaxTMI 
TaxTMI 
TaxTMI 
2024 (1) TMI 1466
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....estion of law which is long required to be answered in view of a particular Circular issued by the Hon'ble the then Chief Justice of this Court on September 30, 2022. 3. The matter pertains, inter alia, to a provisional order of attachment passed under Section 5 of the Prevention of Money Laundering Act, 2002 (for short "the PMLA"). 4. By a Circular dated September 30, 2022 issued by the then Hon'ble the Chief Justice of this Court, in Clause 3 it was stipulated that matters relating to CBI and Central Agencies in writ petitions under Article 226 of the Constitution of India are already included within the comprehensive reading of Subject Category 'Police' in the Appellate Side Rules; therefore, there is no need to mention CBI and Central....
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.... authorities under the PMLA are not police officers as such. The disjunctive conjunction "and" has been sought to be interpreted by learned counsel for the petitioner to distinguish between Section 50 and the rest of the sentence, the latter specifically providing that authorities under the PMLA are not police officers as such. 9. Learned counsel also places reliance on the celebrated judgment of Vijay Madanlal Choudhary and others vs. Union of India and others, reported at 2022 SCC OnLine SC 929. Several paragraphs thereof have been placed before this court. In paragraph no. 449, the Supreme Court held inter alia that the authorities under the 2002 Act are not Police Officers. 'Ex- consequenti', the statements recorded by authorities unde....
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....ncies under the PMLA or other Acts. Thus, it is argued that all Central Agencies including the CBI come within the category of police for the purpose of the present consideration. 13. Learned counsel for the ED highlights that in paragraph no. 8 of the Division Bench judgment cited by the petitioner, the court was considering an exercise under Section 50 of the PMLA, which contemplates an exercise akin to a civil court. By placing reliance on the language of Section 50, it is argued that the Director shall, for the purpose of Section 13, have the same powers as are vested in a civil court under the Code of Civil Procedure while trying a suit in respect of the matters as enumerated therein, that is, in Section 50. As opposed to the same, Se....
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....cement, acting within the purview of the Central Government, is deemed to be included in the term 'Central Agencies' as per the said Circular, then no residuary matter against the Union of India could probably come to this court, which could not have been the intention of the then Hon'ble The Chief Justice while bifurcating determinations within the residuary writ matters. 18. Appling the principle of ejusdem generis, hence, the expression 'Central Agencies' has to be taken in the same light as CBI and Police as used in the Circular. 19. In such backdrop, let us consider the judgment of the Division Bench presided over by the then Chief Justice. Notably, the same was rendered after the issuance of the Circular by the Chief Justice. 20. P....
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....t itself. To put it differently, the Supreme Court further held, at the stage of recording of statement for the purpose of inquiring into the relevant facts in connection with the property being proceeds of crime is, in that sense, not an investigation for prosecution as such, and in any case there would be no formal accusation against the noticee. 24. Undoubtedly, one cannot forget the preamble and object and purpose of the PMLA which is to prevent money laundering, which has criminal as well as civil consequences. 25. Section 50 of the Act, if read closely, is merely an enabling provision and a tool for the authorities to gather evidence by issuing summons. Notably, the Director, who is one of the "authorities" under Section 48 of the P....
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....civil matters, the rights and liabilities of persons are decided whereas in criminal matters penal consequences follow. As such, on a broad distinction, civil matters relate to properties and civil rights relating to contracts or jural relationships or rights to offices of a person whereas a criminal action is entails penal measures for offences. 31. The provisional attachment of a particular property, although arising out of money laundering which has criminal consequences, is a pure civil action being exercised by the Director or any officer not below the rank of Deputy Director. 32. The above ratio is all the more bolstered in view of the fact that Section 5(5) of the PMLA mandates the Director or other officer who provisionally attach....