TaxTMI 
TaxTMI 
2026 (7) TMI 1947
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....instant writ petition and staying the operation of Freezing Order dated 7th July, 2026, issued by the respondent no.4 under Section 17(1-A) of the PMLA, 2002 till the disposal of the writ petition. 2. One Shri Biswanath Das, MLA, West Bengal Legislative Assembly, lodged a written complaint to the Cyber Crime Police Station, Bidhannagar Police Commissionerate on 18th June, 2026, on the allegation that certain funds allegedly arising out of illegal activities including misuse of influence, dishonest financial dealings and suspected unlawful collection of money may have been routed and deposited into three bank accounts lying in the HDFC Bank, Central Plaza Branch, Kolkata. On the basis of the said complaint, Cyber Crime Station registered FIR No. 94 of 2026 dated 18th June, 2026 under Sections 111(4)/111(6)/316(2)/318(4)/61(2) of the Bharatiya Nyaya Sanhita (BNS), 2023, read with Sections 66C and 66D of the Information Technology Act, 2000. 3. On getting information about the FIR No. 94 of 2026, the Enforcement Directorate initiated ECIR No. ECIR/KLZO-II/20/2026 dated 23rd June, 2026, as per Section 318(4) and Section 6(2) of the BNS, 2023, falls under paragra....
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....dinate Bench of this Court after taking into consideration of the report submitted by the investigating agency and the bank has appointed a former Judge of this Court as Special Officer to facilitate the operation of the three bank accounts for incurring day-to-day/ monthly expenditure to run the political party. 8. Mr. Singhvi has referred upon the order passed by the Coordinate Bench of this Court dated 9th July, 2026 and submits that the Hon'ble Court is of the prima facie view that the complaint dated 18th June, 2026, appears to be omnibus without pin pointing particular incidents or transactions based on which three bank accounts were illegally freezed. He further submits that the Hon'ble Court has also observed that the complaint was lodged on 18th June, 2026 based on which the FIR was lodged on 18th June, 2026 and hurriedly on the next day i.e. 19th June, 2026, three accounts were debit-frozen. 9. Mr. Singhvi further referred the said order and submits that the Hon'ble Court also unable to find particular materials which could have been the basis of taking such steps for freezing the accounts of the petitioners. He submits that as per Section 17(1) of the PMLA, 2002, t....
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.... has reason to believe that any person has committed an offence under Section 3 or is in possession of proceeds of crime, a notice will be served to such person calling upon him to indicate the source of his income, earning or assets out of which or by means by which he has acquired the property and the Adjudicating Authority after considering the reply to the notice and after hearing of the agreed person and the Director or any other authorized officer shall decide the same whether any property is involved in money laundering. 15. Learned ASGI submits that if the agreed person or the Enforcement Directorate are aggrieved with the said order by the Adjudicating Authority can prefer an appeal before the Appellate Tribunal under Section 26 of the PMLA, 2002. He further submits that being aggrieved with the order of the Appellate Tribunal, an appeal will lie to this Court under Section 42 of the PMLA, 2002. By referring the said provision, he submits that the writ petition is not maintainable. 16. Learned ASGI submits that the petitioners have relied upon the interim order passed by the Coordinate Bench of this Court dated 9th July, 2026, but the interim order cannot be treated ....
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.... of 2002 is a special Act and is a self-contained code regarding the subject of searches and seizures in connection with the offence of money laundering under the Act of 2002, coupled with the fact that the purpose and object of the Act of 2002, is prevention of money laundering, and the offence of money laundering being an independent offence concerning the process and activity connected with the proceeds of crime, the deletion of the first proviso has reasonable nexus with the objects sought to be achieved by the Act of 2002 for strengthening the mechanism of prevention of money laundering and to secure the proceeds of crime. 21. Heard the Learned Counsel for the respective parties, perused the materials on record and the judgments relied by the parties. There is no dispute with regard to registration of case by Cyber Crime Police Station, Bidhannagar Police Commissionerate dated 18th June, 2026 for the offence under Sections 111(4)/111(6)/316(2)/ 318(4)/61(2) of the BNS, 2023, read with Sections 66C and 66D of the Information Technology Act, 2000. Sections 318(4) and 61(2) of BNS, 2023, falls under paragraph 1 of Part-A of the PMLA, 2002 as defined under Section 2(1)(y) of th....
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....ly on the next day, 19th June, 2026 those three accounts were debit-frozen. 26. This Court has made an endeavour to find out the materials which were available before the concerned police authority leading to debit-freezing of those three bank accounts. 27. However, at this stage Court is unable to find particular materials which could have been basis of taking such abrupt step. Issue needs further consideration on placing materials before this Court prior to final adjudication of this writ petition." 25. In order to give effect to the provisions of Section 17 of the PMLA, the Central Government, in exercise of the powers conferred under sub-section (1), read with clauses (a), (m), (n), (o), (pp) and (w) of sub-section (2) of Section 73, has framed the Prevention of Money-Laundering (Forms, Search and Seizure or Freezing and the Manner of Forwarding the Reasons and Material to the Adjudicating Authority, Impounding and Custody of Records and the Period of Retention) Rules, 2005. The relevant extracts of these Rules are reproduced hereinbelow for ready reference: "3. Procedure relating to search. - (1) The Director or any other officer authorized by him....
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.... Provided that, if any such building or place is an apartment in actual occupancy of a woman, who according to custom does not appear in public, the authority shall before entering such apartment, give notice to such woman that she is at liberty to withdraw and shall afford her every reasonable facility for withdrawing and may then break open the apartment and enter it. (6) If ingress into any vessel, vehicle or aircraft authorized to be searched cannot be obtained because such vessel, vehicle or aircraft is moving or for any other reason, it shall be lawful for the authority executing the authorization, with such assistance as may be required of police officers and such officers, as specified in Section 54 of the Act, to stop any such vessel or vehicle or in the case of an aircraft, compel it to stop or land, and search any part of the vessel, vehicle or aircraft, and in order to effect an entrance into such vessel, vehicle or aircraft to break open any door or window of any such vessel, vehicle or aircraft, whether that of the person to be searched or of any other person, if after production of the authorization and demand of admittance duly made, he cannot otherwise ob....
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.... II appended to these rules which shall be delivered to the occupant of the building, place, vessel, vehicle or aircraft searched including the person in charge of such vessel, vehicle or aircraft, or some person on his behalf and the authority shall also forward a copy of the inventory so prepared to the Director and the Adjudicating Authority. (3) The authority shall place or cause to be placed the records of properties including bullion, jewellery and other valuable articles and things seized during the search in a package which shall contain the details of the bullion, jewellery and other valuable article and things placed therein, such packages shall bear an identification mark and the seal of the authority, and the occupant of such building, place, vehicle or aircraft, including the person in charge of such vessel, vehicle or aircraft searched or any other person on his behalf shall also be permitted to place his seal on packages. (4) A copy of the list prepared in accordance with sub-rule (3) shall be delivered to the occupant of the building, place, vehicle or aircraft, including the person in charge of such vessel, vehicle or aircraft searched or any othe....
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....of the account of the HDFC to one M/s Carewell Aviation India Private Limited which appears to have been incorporated for the purpose of diversion of funds from AITC accounts. In the freezing order, it is also mentioned that other similar transactions from the accounts of the HDFC bank have been routed for the purpose of siphoning off and using them for personal purposes by the persons authorizing control over the accounts unrelated to the mandated purpose. 29. The investigating agencies have not produced particular materials before the Coordinate Bench on the basis of which such steps were taken by the Cyber Crime Police and the Hon'ble Court has also taken into consideration of Section 106 of the BNS. In the present case from the order of freezing, it reveals that the Investigating Officer has analyzed the accounts and found substantial transfer of funds to various entities. 30. At the stage of grant of interim order, it is not possible for the Court to adjudge whether the transfer is legal or otherwise. The petitioners will get an opportunity to place its all grievances before the Adjudicating Authority once the Adjudicating Authority will issue notice to the petitioners f....
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....stigation, whereas attachment is intended to secure the proceeds of crime by preventing its disposal and thus ensuring its availability for legal procedure such as forfeiture and distribution to the victim/s." The order of the Learned Single Judge was challenged before the Hon'ble Supreme Court and the SLP was dismissed. In view of the above, it cannot be said that the order passed by the Coordinate Bench is per incuriam. 35. The writ petitioner no. 1, All India Trinamool Congress, has filed the instant writ petition through its authorized representative, namely, Mr. Subhasish Chakraborty. In the writ petition, the representative of the writ petitioner no.1 has disclosed authorization. The said authorization is signed by one Derek O'Brien, Member, National Working Committee, All India Trinamool Congress. Article XII(c) of the petitioner no. 1, reads as follows: "Article XII (c) The National Working Committee shall be the highest executive authority of the All India Trinamool Congress and shall have the power to carry out the policies and programmers of the Trinamool Congress as approved by the AITC Committee and shall be responsible to the AITC Committee. It....