TaxTMI 
TaxTMI 
2020 (12) TMI 1422
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....t : Sri M.B. Nargund, ASG A/W Sri P. Karunakar, Standing Counsel & Sri M.B. Nargund, ASG A/W Sri P. Karunakar, Standing Counsel. ORDER Criminal Petition No. 584/2018 is filed by accused Nos. 1 and 2 challenging the prosecution instituted against them for the alleged offence punishable under Section 3 of the Prevention of Money-laundering Act, 2002 ('PML Act' for brevity). Criminal Petition No. 9373/2016 is filed by the very same accused Nos. 1 and 2 alongwith their daughter (defendant No. 3) challenging the proceedings initiated by respondent Nos. 2 and 3 under Section 5 of the PML Act. 2. The case of the respondents is that a charge sheet was filed against accused No. 1 Sri H.M. Maltesh in FIR No....
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.... advanced are the proceeds generated out of criminal activity related to the scheduled offence under PMLA and hence, these are proceeds of crime in terms of section 2(1)(u) of PMLA, 2002." (underlining supplied) 4. In order to lay a foundation for attachment of the properties of accused Nos. 1 and 2 and their daughter, it is averred in the complaint at para-28 as under: "28. Investigations under the PMLA, 2002 revealed that the property bearing No. 119/1, Dodda Hunsur, Hunsur Taluk, Mysore District offered as security by Sri H.M. Maltesh was the family property among three brothers and his portion as per the Partition deed is only (a) 0.33 guntas in Sy. No.119/1A..." 5. In the light of the above facts, the ....
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....he prosecution under Sections 406 and 420 of IPC, but by the said acts, it cannot be said that accused No. 1 was involved directly or indirectly in any process or activity connected with the "proceeds of crime". For constituting an offence of money-laundering, the offender must directly or indirectly attempt to indulge or knowingly assist or knowingly is a party or is actually involved in any activity connected with the "proceeds of crime.'' 9. In the instant case, there is nothing in the complaint or in the charge sheet filed against accused No. 1 to suggest that either accused No. 1 or any other accused persons were involved in the criminal activity connected with the failure to return the advance amount of Rs. 2.15....
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....h property' used in the definition cannot be given such a wider meaning, so as to confer right on the adjudicating authority to proceed against all and every assets standing in the name of the alleged offenders. 12. A reading of the provisions of Section 5 of the PML Act makes it clear that a Director or any other Officer not below the rank of Deputy Director authorized by the Director could proceed to attach the property only when he has a reason to believe that any person is in possession of any "proceeds of crime" and not otherwise. Therefore, the only meaning that could be ascribed to 'any such property' employed in Section 2(1)(u) of the PML Act is that it should necessarily relate to tainted properties or the properties derived or ....
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....issue prerogative writs under Article 226 of the Constitution is plenary in nature and is not limited by any other provision of the Constitution. This power can be exercised by the High Court not only for issuing writs in the nature of Habeas Corpus, Mandamus, prohibition, Quo Warranto and Certiorari for the enforcement of any of the Fundamental Rights contained in Part III of the Constitution but also for "any other purpose". 15. Under Article 226 of the Constitution, the High Court, having regard to the facts of the case, has a discretion to entertain or not to entertain a writ petition. But the High Court has imposed upon itself certain restrictions one of which is that if an effective and efficacious remedy is available, the Hi....