TaxTMI 
TaxTMI 
2025 (10) TMI 1076
X X X X Extracts X X X X
X X X X Extracts X X X X
....o as 'LSJ'] in Writ Petitions which raised substantially similar challenges. Since, both the Appeals arise from the same lis and turn upon overlapping issues; they are with the consent of learned counsel for the respective parties, being disposed of by this consolidated judgment. However, for the sake of convenience and with the consent of the parties, the LPA 590/2022 is being treated as the lead case to extrapolate our decision in both the Appeals. BRIEF BACKGROUND: 2. The dispute between the parties arises out of an allocation of the Chotia Coal Block in favour of M/s Prakash Industries Limited [hereinafter referred to as 'PIL']. The primary allegation against PIL was that they have attained the allocation, though fraudulent activities resulting in financial gains leading to proceeds of crime. The allocation of the Coal Block was made in favour of PIL on 04.09.2003. However, such allocation as on date stands cancelled by the Supreme Court via its judgment in W.P.(Crl) 120/2012 captioned Manohar Lal Sharma v Union of India [hereinafter referred to as 'ML Sharma'], the said judgment declared the coal block allotments to be illegal and arbitrary. The Supreme Court further dir....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t vide Order dated 06.05.2022 has stayed further proceedings before the Trial Court. 6. Consequent to the registration of the second FIR by CBI, the Directorate of Enforcement (Appellant herein) [hereinafter referred to as 'Directorate'] initiated simultaneous proceeding under Prevention of Money Laundering Act, 2002 [hereinafter referred to as 'PMLA'] on 03.03.2017 and registered ECIR No. ECIR/01/CDZO/2017, alleging generation of proceeds of crime by way of illegal coal block allotment and related fraudulent misrepresentation made to attain the allocation. Resultantly, on 01.12.2021, the Directorate issued a Provisional Attachment Order [hereinafter referred to as "PAO"] under Section 5(1) of the PMLA, attaching assets valued at approximately Rs. 227 Crores, as being proceeds of crime arising out of illegal acts connected to the allocation. 7. Aggrieved, by the said attachment, PIL filed a petition on 22.12.2021 assailing the correctness of the PAO. Meanwhile, on 28.12.2021, the Directorate filed an Original Complaint [hereinafter referred to as "OC"] before the Adjudicating Authority under Section 5(5) of the PMLA seeking confirmation of the PAO. Subsequently, a Show Cause ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....led with complaint bearing No. 1586/2021 being filed under Section 5(5) of the PMLA, an amendment was made to the Writ Petition. The said amendment was allowed by the LSJ, taking into consideration the infirmities in the order passed under Section 8(1) of PMLA. 13.3 In view of the aforestated, it has been argued that the LSJ exercised its supervisory jurisdiction under Article 227 of the COI, thereby setting aside the proceedings and the order of the subordinate authority, with a finding that the same was, without jurisdiction and without authority of law. 13.4 It has also been argued that the SCN was issued by the Adjudicating Authority after due application of mind and in form of a judicial order, and that the LSJ, while exercising supervisory jurisdiction, has set aside such an order. Reference in this regard was made to a Division Bench judgement of Telangana in Enforcement Directorate v Karvy India Realty Limited and Others 2024 SCC Online TS 18; Abdul Kuddus v Union of India & Ors. (2019) 6 SCC 604; and Ajay Singh and Anr and Etc v State of Chattisgarh and Anr 2017 (3) SCC 330. 13.5 With respect to ML Sharma (Supra), it is contended that the bar imposed in the said j....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d) Issue a Writ to Quash and set aside the Provisional Attachment order no.8337, 8338, 8339, 8340 / 2021dated 01.12.2021 passed in ECIR/01/CDZO/2017 dated03.03.2017 by the Respondent.[Copy of ECIR not available with Petitioners.] e) Pass such further/other relief, in favour of the Petitioners, which this Hon'ble Authority may deem fit and proper in the facts and circumstances of the case. Amended prayer sought: a) Call for the records relating to the impugned proceedings initiated under Section.5 of The Prevention of Money Laundering Act, 2002 emanating out of ECIR/01/CDZO/2017 dated 03.03.2017; b) Issue a Writ of Quo Warranto to the Respondent as to show under what authority of law the impugned proceedings have been initiated; c) Issue a Writ of Certiorari or any similar Writ to quash and set aside the very proceedings under Section.5 of the Prevention of Money Laundering Act, 2002 for attachment of the properties of the Petitioner emanating out of ECIR/01/CDZO/2017 dated 03.03.2017; d) Issue a Writ to Quash and set aside the Provisional Attachment order no. 8337, 8338, 8339, 8340 / 2021 dated01.12.2021 passed in ECIR/01/CDZO/2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....By virtue of Section 6 of PMLA, the Adjudicating authority is neither a Tribunal nor a Court within the meaning of Article 227 of the COI. Therefore, supervisory powers of the High Court under Article 227 of the COI cannot be invoked against such an authority. In this regard, reliance has been placed on Sukesh Gupta v Government of India 2022 SCC OnLine TS 3411 and M. Sobhana v. The Assistant Director, Directorate of Enforcement 2013 SCC Online Mad 2961. 14.3 Further, reliance has been placed on the judgment of ML Sharma (Supra) to submit that the Supreme Court has categorically held that in matters arising out of the coal block allocation cases, only the Supreme Court has the jurisdiction to entertain any plea that may impede or delay the progress of investigation or trial. This exclusive jurisdiction is stated to be subsequently reaffirmed in Girish Kumar Suneja v. CBI 2016 SCC OnLine Del 5751, by this Court and subsequently by the Supreme Court itself in Girish Kumar Suneja v. CBI (2017) 14 SCC 809, wherein it was held that such a restriction was justified in the larger public interest and does not violate the constitutional scheme. 14.4 Further reliance has also been plac....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ceedings relating to the same form subject matter of challenge in Special Leave to Appeal (Crl.) Nos. 656-657/2022 in which by an order of 06 May 2022, further proceedings before the Trial Court have been stayed. The impugned proceedings emanate from the second chargesheet and relate to the provisional attachment of properties held by sister concerns and entities of PIL. It becomes pertinent to highlight here that while the second chargesheet restricts itself to events which occurred upto 04 September 2003 when the coal block was allocated to PIL, the impugned show cause notices and the provisional attachment orders cover properties acquired prior to as well as post that date. 84. A reading of the second chargesheet establishes that the principal allegations levelled against the petitioners is of having submitted false and forged documents in support of their application for allocation of a coal block. It is alleged that the false, incorrect and misleading particulars were provided by them for the purposes of obtaining the allocation. The allegation of commission of offenses relatable to Section 420 and 120 B IPC is premised on the aforesaid allegations. While it is not fo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ling within the net of Section 2(1)(u). xxxx xxxx xxxx xxxx 88. It is therefore evident that the Act essentially seeks to confiscate properties and assets that may be obtained from criminal activity and which may then be concealed and legitimised through processes which are described as placement, layering and integration. The Act is motivated by the aim to confiscate the monetary advantage that may be obtained or derived from criminal activity. When viewed in that light, it is evident that the allocation per se cannot possibly be viewed or understood as representing proceeds of crime in itself. It is the illegal gains obtained and derived by the utilisation of that allocation and the concealment or conversion of those gains into assets or properties which could possibly be understood as amounting to an act of money laundering. 89. The quintessential element of money laundering is the washing of criminal proceeds and its conversion into property as defined in Section 2(1)(v). For reasons set out hereinabove, the Court has come to the definite conclusion that the allocation would not constitute proceeds of crime. If therefore the scope of enquiry were to b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....16. On the merits of the case, learned counsel for the Directorate has made submissions under four principal limbs, which are (i) alleged misrepresentations by PIL; (ii) Incorrect Application of Proceeds of Crime u/s 2(1)(u) and Section 3 of the PMLA; (iii) Incorrect Application of Property u/s 2(1)(v) under PMLA and (iv) Incorrect application of scheme of PMLA. i. Alleged misrepresentations by PIL 16.1 In substance, the learned counsel for the Directorate submits that PIL consistently indulged in multiple misrepresentations and suppression of facts before various statutory authorities and government bodies in order to fraudulently attain the allocation letter. The details of alleged misrepresentations are as follows: S.No. Mode of alleged Misrepresentation (Document/Occasion) Claimed position by PIL Actual alleged position as per investigation 1. Letter dated 03.06.1997 to Ministry of Coal (MoC) Installed capacity of the company is 4 LTPA. Only 3 LTPA installed capacity of sponge iron. 2. Letter dated 13.01.1998 to SECL Company has 4 LTPA capacity and intends to double it Company had only 3 LTPA installe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Section 3 of the PMLA. The term process is stated to mean "a continuous and regular action or succession of actions taking place or carried on in a definite manner and leading to the accomplishment of some result." It has been submitted that as per the aforestated interpretation, Section 3 of the PMLA is sufficiently wide enough to include any process or activity connected with or leading to the generation of proceeds of crime. Therefore, on the basis of the above interpretation, it has been submitted that the extraction of 84,42,725 MT of coal, valued at Rs. 9,51,77,34,115/-, the license for which was derived through fraudulent allocation of coal blocks from 2006-07 to 2014-15 and which is a scheduled offence would be covered under the ambit of Section 3 of the PMLA. 16.3 Controverting the position recorded at Paragraph No.83 by the LSJ, it has been submitted that the LSJ erroneously records that the ECIR No. ECIR/01/CDZO/2017 pertains to events that occurred upto 04.09.2003, the date of allocation. However, the impugned PAO and SCN relate to properties acquired both prior to as well as post the date of allocation. 16.4 The attention of this Court has been drawn to Paragraph....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... was directly obtained as a result of criminal activity recognized as scheduled offence under sections 420, 120B and 471 of the IPC. 16.7 On the basis of the above said submissions made, it is the case of the Directorate that as per the definition of proceeds of crime provided under PMLA, such proceeds can only be derived directly or indirectly as a result of criminal activity in relation to a scheduled offence. Therefore, the proceeds of crime will only arise after the commission of scheduled offence and the scope of inquiry cannot be restricted upto the date of allocation alone. A similar position has also been given by the LSJ in Paragraph No.88 of the IJ. In this regard, reliance has been placed on Paragraph No. 270 of Vijay Madanlal Chaudhary v Union of India 2022 SCC OnLine SC 929, wherein the Supreme Court has held as under: "270. Needless to mention that such process or activity can be indulged in only after the property is derived or obtained as a result of criminal activity (a scheduled offence). It would be an offence of money-laundering to indulge in or to assist or being party to the process or activity connected with the proceeds of crime; and such process....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the allocation letter itself constitutes property involved in the offence of money laundering, as it not only confers rights, and thereby constitutes "proceeds of crime" and proceed further to grant the rights for extraction of coal, thereby also generating proceeds of crime capable of attachment. It has been submitted that the LSJ failed to recognize the settled law that if an order can sustain on any one ground provided under Section 2(1)(v) of the PMLA, then no interference is warranted by a Writ Court. 16.10 Reliance in this regard has been placed on the ML Sharma judgment to contend that the observations made by the LSJ in Paragraph No.88 are in teeth of the said judgment. On one hand, the IJ states that the allocation cannot be construed as property; whereas on the other hand, the ML Sharma judgement makes it amply clear that allocation letter creates and confers a valuable right upon the allotee. Moreover, it is also argued that the fact of a pending investigation against PIL in respect of scheduled offences makes no difference to the legal position. Whether the Directorate treated the allocation letter itself as proceeds of crime or not, is immaterial, as the undisputed ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 17.1 It is the case of PIL that the PAO issued by the Directorate, based on the presumption of proceeds of crime as defined under Section 2(1)(u) of the PMLA, would not be equivalent to the value of the coal already extracted, rather it would be equivalent to the benefit derived by the accused from the offence and the equivalent loss caused to the exchequer. Reliance in this regard has been placed on ML Sharma (Supra) to contend that such allocations were cancelled by the Supreme Court as on 24.09.2014, wherein the Court also directed the allotees to pay an additional levy of Rs. 295/- per metric ton of coal extracted from the respective coal blocks. Additionally, reference is made to Section 415 of the IPC to submit that the loss caused to the exchequer is emanating from the offence of cheating, which, in the present case, constitutes the benefit derived by PIL through allocation obtained on the basis of false and forged documents. 17.2 It is submitted that, in the present case, the coal block allocation formed the very basis on which the Respondent was able to derive any benefit which subsequently constituted the proceeds of Crime. However, on the basis of the submissions ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....spective of whether the corresponding scheduled offence which may or may not be registered as an offence, is contrary to the scheme of the provision itself. In support of this contention, reliance has been placed on Vijay Madanlal Chaudhary (Supra), Indrani Ptanaik v Enforcement Directorate (2022) SCC OnLine SC 2167. 17.6 Controverting the submissions advanced by the learned counsel for the Directorate that the cut-off date of 04.09.2003 is of no relevance, learned senior counsel has relied upon Paragraph No.93 of the IJ, wherein the LSJ observed that "the utilisation of the allocation and consequential generation of alleged proceeds of crime are all issued which fall beyond the realm of the second chargesheet". Further, it is submitted that this finding was based on the submissions made by PIL, who contended that, in terms of the first FIR, the allegation against PIL was that 2,27,000 MT of coal had been diverted to the open market, resulting in the earning of illegal profits amounting to Rs. 22.7 crores. 17.7 Additionally, the attention of this Court has been drawn to a portion of the second chargesheet, which reads as follows: "16.57 A CASE RC AC2 2010 A0001 WAS R....
X X X X Extracts X X X X
X X X X Extracts X X X X
....session, acquisition or use of the coal block allocation occurred after the date of allotment qua which no chargesheet has been filed. Therefore, the essential ingredient of proceeds of crime and the applicability of Section 3 of the PMLA are both absent in the case at hand. In light of these, it is contended that the Directorate couldn't have issued a PAO against PIL. ANALYSIS & FINDINGS: 18. Having heard the rival submissions advanced by the learned counsel for the parties and upon perusal of the record, this Bench has identified the following five issues: A. Maintainability: Preliminary Objection regarding the present appeal. B. Section 2(1)(v) of the PMLA: Whether the allocation letter can be construed as 'property'? C. Section 2(1)(u) and Section 3 of the PMLA: Whether misrepresentation in allocation of coal block leads to proceeds of crime making it an offence of money laundering? D. Attachment under Section 5 of the PMLA: Whether the Directorate is justified in attaching the value of coal extracted? E. Relevance of 04.09.2003: Whether the LSJ erred in restricting the applicability of PMLA, pre-allocation, in view of the quas....
X X X X Extracts X X X X
X X X X Extracts X X X X
....SCN and the complaint proceedings. The aforestated underscores that the gravamen of the challenge lay against the exercise of executive authority under statutory powers, thereby attracting Article 226 of the COI. 23. Additionally, a perusal of the arguments advanced by learned counsel for PIL, with respect to the merits of the present case, reflect that the intention of PIL was not merely confined to the quashing of the orders, rather the Writ Petition was filed with an intention to directly strike the very foundation of the powers exercised by the Directorate to initiate attachment proceedings followed by the SCN and the complaint. Meaning thereby, PIL sought to impugn the reasoning adopted by the Directorate in invoking its power under Sections 5 and 8 of the PMLA, by challenging the alleged existence of proceeds of crime and their alleged nexus to a scheduled offence which is a statutory requirement under Section 2(1)(u) and Section 3 of the PMLA. 24. The arguments advanced by learned counsel for PIL were targeting the substantive legality and the jurisdictional validity of the actions initiated by the Directorate, which was argued to be going beyond statutory compliances.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....poreal or incorporeal, movable or immovable, tangible or intangible and includes deeds and instruments evidencing title to, or interest in, such property or assets, wherever located; [Explanation.-For the removal of doubts, it is hereby clarified that the term "property" includes property of any kind used in the commission of an offence under this Act or any of the scheduled offences;] 3. Offence of money-laundering.-Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the 1[proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming] it as untainted property shall be guilty of offence of money-laundering. [Explanation.-For the removal of doubts, it is hereby clarified that,- (i) a person shall be guilty of offence of money-laundering if such person is found to have directly or indirectly attempted to indulge or knowingly assisted or knowingly is a party or is actually involved in one or more of the following processes or activities connected with proceeds of crime, namely:- (a) conceal....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r this Chapter, the non-attachment of the property is likely to frustrate any proceeding under this Act.] [Provided also that for the purposes of computing the period of one hundred and eighty days, the period during which the proceedings under this section is stayed by the High Court, shall be excluded and a further period not exceeding thirty days from the date of order of vacation of such stay order shall be counted.]; (2) The Director, or any other officer not below the rank of Deputy Director, shall, immediately after attachment under sub-section (1), forward a copy of the order, along with the material in his possession, referred to in that sub-section, to the Adjudicating Authority, in a sealed envelope, in the manner as may be prescribed and such Adjudicating Authority shall keep such order and material for such period as may be prescribed. (3) Every order of attachment made under sub-section (1) shall cease to have effect after the expiry of the period specified in that sub-section or on the date of an order made under 3[sub-section (3)] of section 8, whichever is earlier. (4) Nothing in this section shall prevent the person interested i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vernment." It also goes on to define it as, "the word commonly used to denote everything which is the subject of ownership, corporeal or incorporeal, tangible or intangible, visible or invisible, real or personal; everything that has an exchangeable value or which goes to make up wealth or estate. It extends to every species of valuable right and interest and includes real and personal property, easements, franchises and incorporeal hereditaments". 32. The definition of 'property' as provided under Section 2(1)(v) of the PMLA, is inclusive and expansive, broadly including every description of asset provided thereunder, in form of a deed or instrument evidencing title or interest in such assets. To put it simply, the definition of 'property' as provided under the PMLA is broad and inclusive in its approach towards what constitutes as property within the contours of the Act. This statutory definition is further supported by the constitutional jurisprudence of India, reiterating the understanding of what constitutes as property in India under Article 300A of the COI, which recognizes property as inclusive of intangible interests and rights created through incorporeal assets. 33.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t acted as a conduit to derive the proceeds of crime. Further, the allocation letter was attained through misrepresentation and suppression of material facts, which if revealed truly would have led PIL to not be in the possession of the allocation letter, amounting to criminal activity relating to scheduled offences under the PMLA. Since, the allocation letter enabled the commission of money laundering, the letter is not only relevant but also constitutes property involved in money laundering under the scheme of the Act. 38. In view of the aforestated, the finding of the LSJ under Paragraph No.86, whereby the LSJ while relying upon the procedure for allotment of coal blocks as explained in the judgment of ML Sharma, has highlighted that the allocation of a coal block cannot be construed either as property or conferment of a right in property, falls short of nuanced understanding of the rights conferred upon the allotee through the allotment letter. The LSJ erred in coming to such a finding, specifically when in the present case the allotment letter leading to allocation of coal block is alleged to have been obtained through criminal means. The mere fact that subsequent statutory....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tivity connected with the proceeds of crime is a continued activity and continues till such time a person enjoys such proceeds by concealing or being in possession or acquiring or using or projecting or claiming it as an untainted property. 42. The Statement of Objects and Reasons of the PMLA also highlights certain important recommendations made by the Financial Task Force held in Paris in 1989, which also forms the foundation of the present-day legislation of PMLA dealing with offence of money laundering in India, which are: "(i) declaration of laundering of monies carried through serious crimes as criminal offence; xxxx xxxx xxxx xxxx xxxx (iii) confiscation of the proceeds of crime;" 43. These two recommendations forming part of the objects of the PMLA when read together, reveal the legislative intent behind the Act. It means that the offence of money laundering as envisaged under Section 3 of the PMLA is a stand-alone offence and not just a by-product of crimes; rather it is a crime in itself and the illicit financial gains arising from the criminal activities forming a part of money laundering is subject to confiscation. To put it succinctly, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the submission made by learned Senior Advocate Ranjit Kumar for the respondent that the respondent has not been shown as an accused in the predicate offence. It is no more res integra that the offence of money laundering is an independent offence regarding the process or activity connected with the proceeds of crime, which had been derived or obtained as a result of criminal activity relating to or in relation to a schedule offence. Hence, involvement in any one of such process or activity connected with the Proceeds of Crime would constitute offence of money laundering. This offence otherwise has nothing to do with the criminal activity relating to a schedule offence, except the Proceeds of Crime derived or obtained as a result of that crime. The precise observations made in Vijay Madanlal (supra) in this regard may be reproduced hereunder:- "270. Needless to mention that such process or activity can be indulged in only after the property is derived or obtained as a result of criminal activity (a scheduled offence). It would be an offence of money laundering to indulge in or to assist or being party to the process or activity connected with the proceeds of crime; and such....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ved or obtained property as a result of criminal activity relating to or in relation to a scheduled offence and then indulges in process or activity connected with such proceeds of crime. Suffice it to observe that the argument under consideration is completely misplaced and needs to be rejected." 48. In the present case, PIL misrepresented facts and figures in the process of obtaining coal block allocations, which typically attracts offences under Sections 420 and 467 of the IPC and Section 13(1)(d) of the PCA. Thereafter, the coal block allocation letter obtained through such criminal activity conferred valuable rights in favour of PIL which enabled the party to secure mining leases from the government and subsequently undertake coal excavation. As a result, it led PIL to obtain financial benefits in the form of profits earned from the extraction and sale of coal or through the usage of the financial benefits to substitute or derive assets, which qualifies as proceeds of crime within the meaning of Section 2(1)(u) of the PMLA. 49. Subsequently, since any process or activity connected with such proceeds of crime including possession, use, concealment, layering, projection or....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... THE VALUE OF COAL EXTRACTED? 53. Section 5(1) of the PMLA permits provisional attachment where the authorized officer has a 'reason to believe' that a person is in possession of proceeds of crime and such proceeds are likely to be dealt in a manner, the result of which is likely to undermine the proceedings related to confiscation provided under the PMLA. However, the first proviso to Section 5 (1) of the PMLA, highlights that the order of attachment shall be issued following some formal action taken, namely, registration of final report under Section 173 of the CrPC; complaint filed by an authorised officer before a court or magistrate; or in case of offence committed outside India, a similar report or complaint being filed under the municipal laws of the respective countries. 54. The statutory definition of proceeds of crime under Section 2(1)(u) of the PMLA expressly includes, "the value of any such property", which enables the Directorate, subject to statutory prerequisites, to attach the equitable value where the specified property and its value obtained illegally by the person become untraceable or has been intermingled or dissipated. 55. In order to proceed with th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ort under Section 173 of the CrPC or a complaint by an authorised officer for initiation of attachment, the second proviso provides for attachment on account of a 'reason to believe' based on the material available. These provisos form a jurisdictional precondition for issuance of the PAO; however, it does not restrict the scope of the Directorate's attachment to the time period covered in the said report or complaint. 59. To put it succinctly, the report under Section 173 of the CrPC, acts as a gateway triggering the requirement to initiate action under the proviso to Section 5(1) of the PMLA; but does not confine the extent of the inquiry of the Directorate and/or the duration of the proceeds of crime sought to be attached. Having said the aforestated, it is also important to highlight that there are two provisos attached to section 5(1) of the PMLA, each operating within its own independent domain. Therefore, it is important to bear in mind that the filing of a report under Section 173 of the CrPC is one of the triggering conditions for initiating attachment under first proviso to Section 5(1) of the PMLA, but not the only one, as under the statute, other conditions may indep....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or this Court to note that the ECIR was registered on 03.03.2017, subsequent to the second FIR dated 02.12.2016, wherein eventually a chargesheet was filed on 23.01.2020 following which a supplementary chargesheet was also filed u/s 173(8) of CrPC. Thereafter, the Special Judge framed charges with respect to the second FIR; however, the Supreme Court stayed the proceedings before the Trial Court. On the contrary, the first FIR and its consequent chargesheet were quashed by this Court. Against this backdrop, notwithstanding the stay of trial proceedings arising from the second FIR, neither the second FIR nor the chargesheet or supplementary chargesheet has been quashed by any competent court till date. Therefore, quashing of the first FIR does not affect the subsistence of the ECIR, particularly when the second FIR and its consequential proceedings remain pending. As such, when the registration of the second FIR and filing of supplementary/final report u/s 173 (8) of CrPC formed the basis of proceedings under PMLA, the quashing of the first FIR is not of much relevance because the second FIR and its chargesheet have not been quashed and continue to subsist. However, it appears that ....