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2019 Supreme(Del) 897

RAJENDRA MENON, ANUP JAIRAM BHAMBHANI
Directorate Of Enforcement – Appellant
Versus
Abdullah Ali Balsharaf – Respondent


Advocates:
Advocate Appeared:
D.P. Singh, Adv., Amit Mahajan, Adv., Manu Mishra, Adv., Randeep Sachdeva, Adv., Biswajit Bhattacharya, Adv., Gurpreet Singh, Adv.

JUDGMENT :

Anup Jairam Bhambhani, J.

By way of the present appeal filed under clause 10 of the Letters Patent of this court, the appellant/Directorate of Enforcement ('DoE') impugns order dated 09.01.2019 made by the single Judge in W.P. (C) No. 3531/2018 (the 'impugned order').

2. Respondents Nos. 1 and 2 in the present appeal are individuals who are ordinarily resident in Riyadh, Saudi Arabia and had purchased shares of one M/s Khushi Ram Behari Lal Ltd. ('KRBL') on respondent No. 3/BSE Ltd. (Bombay Stock Exchange) ('BSE') through respondent No. 4/SMC Global Securities Ltd. ('SMC'), which last-mentioned entity was the agency in which respondents Nos. 1 and 2 held Demat Accounts.

3. By the impugned order, the single Judge has disposed of the writ petition, firstly holding that the DoE could not issue orders 'freezing' Demat accounts by resorting to the provisions of section 102 of the Code of Criminal Procedure, 1973 ('CrPC'), and secondly rejecting the contention that assets acquired prior to the enactment of the Prevention of Money Laundering Act, 2002 ('PMLA') could never fall within the definition of 'proceeds of crime' under the said enactment.

4. The foregoing issues arose when,


















































































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