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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Hamilton Housewares Pvt. Ltd. - Appellant
Versus
Directorate of Enforcement - Respondent
W.P.(C) 5235 of 2020, W.P.(C) 2331 of 2021, W.P.(C) 4680 of 2021, W.P.(C) 5424 of 2020, W.P.(C) 5643 of 2020, W.P.(C) 5657 of 2020, W.P.(C) 5671 of 2020, W.P.(C) 5713 of 2020, W.P.(C) 5797 of 2020, W.P.(C) 5855 of 2020, W.P.(C) 6499 of 2020, W.P.(C) 7034
Decided On : 28-09-2021
| Table of Content |
|---|
| 1. status of vacancies in adjudicating authority (Para 2 , 3 , 4) |
| 2. current staffing issues in adjudicating authority (Para 5 , 6) |
| 3. directions for filling vacancies and increasing staff (Para 7) |
| 4. future steps and scheduling for hearings (Para 8 , 9 , 10) |
JUDGMENT
Prathiba M. Singh, J. (Oral)--This hearing has been done through video conferencing.
2. Pursuant to order dated 2nd September 2021, the situation of the manpower and staff, at the level of Chairman, Members, as also administrative and working staff, in the Adjudicating Authority, under the Prevention of Money Laundering Act, 2002 (hereinafter referred as "PMLA"), as on 1st September, 2021, was placed on record on 8th September, 2021 in W.P.(C) 9384/2020. As per the said affidavit, the following is the position in respect of various vacancies in the Adjudicating Authority.
| "Sl. No. | Post | Sanctioned Strength | In Position | Remarks |
| (A) Members | ||||
| 1. | Chairman | 1 | Vacant | Vacant since 1.9.2020 (more than a year) |
| 2. | Members | 2 | 1 | Vacant since 15.2.2021 (more than six months) |
| (B) Administrative Officer/Registrar | ||||
| 3. | Administrative Officer | 1 | Vacant | Vacant since 29.7.2020 (more than one year) which is (Pay Level-11) post. |
| 4. | Registrar | 1 | Vacant | The post has been lying vacant for more than 5 years. The work is looked after by one of officer in the pay level-10. At present, Sh. Amar Singh, AO has been looking after the work for last one year as additional charge. |
| (C) Working Staff | ||||
| 5. | Assistant | 1 | 1 | - |
| 6. | Court Master | 1 | Vacant | Post has been lying vacant. |
| 7. | Stenographers | 4 | 4* | There is no regular appointment. The work is being taken from outsourced staff through Contractor. |
| (D) MTS/Peons | ||||
| 8. | MTS (Peons) | 4 | 4* | There is no regular appointment. The work is being taken from outsourced staff through Contractor. " |
3. This Court had further enquired from Mr. Ravi Prakash, ld. CGSC, as to the number of cases which were filed before the Adjudicating Authority during January to August, as a comparator, to which, he had submitted the following:
January, 2019 to August, 2019 = 148
January, 2020 to August, 2020 = 130
January, 2021 to August, 2021 = 230
4. Upon perusing the affidavit filed, as also hearing the submission of ld. CGSC on this aspect, this Court had, vide the last order dated 13th September 2021, directed the concerned Joint Secretary (Revenue), Ministry of Finance, Government of India, to file an affidavit stating the following facts:
"(a) As to whether the status of vacant positions in the Adjudicating Authority, as mentioned in today's order are correct and if so since when the said vacancies have existed;
(b) As to what steps are being taken for filling this vacancies, especially Administrative Officers, Registrars, working staff etc.; and
(c) As to what is the stipulated time schedule for filling up the said vacancies."
5. Further to the last order, a further affidavit has been filed, which has been deposed by Sh. Ritvik Pandey, Joint Secretary (Revenue) of the Ministry of Finance, wherein the position in respect of the Presiding Officers as also the Senior Officials, at the Adjudicating Authority under the PMLA, has been given as under:
| " Sr. No. | Name of Post | Name of Officer | Date of Appointment | Completing the tenure/ vacant w.e.f. |
| 1 | Chairperson | Shri Vinodanand Jha (Acting Chairperson) | 14.02.2021 | 22.06.2023 |
| 2 | Member (Administration) & Chairperson | Vacant | - | 31.08.2020 |
| 3 | Member (Law) | Vacant | - | 14.02.2021 |
| 4 | Member (Finance or Accountancy) | Shri Vinodanand Jha | 24.10.2018 | 22.06.2023 (65 Years) |
| 5 | Administrative Officer | Vacant | - | 13.04.2020 |
| 6 | Registrar | Vacant | - | Since the creation of Post w.e.f. 20.08.2010 |
6. From the above affidavit that has been filed on record in WP(C) 4680/2021, it is clear that the current quantum of work at the Adjudicating Authority is quite substantial. There is an acute shortage of staff members as also vacancies at the level of the Chairperson, Member (Administration) and Member (Law). The positions of the Administrative Officer, Registrar, and the Court Master are all vacant.
7. Considering the fact that benches of the Adjudicatin
Efficient functioning of the Adjudicating Authority under the Prevention of Money Laundering Act requires timely appointments to address substantial staff shortages.
The court emphasized the need for efficient functioning of the Adjudicating Authority under the PMLA and directed the government to take steps to fill up vacant positions within specified timeframes.
The judgment established the principle that statutory remedies should be exhausted before seeking extraordinary writ jurisdiction under Article 226 of the Constitution of India.
The adjudicating authority under the Prevention of Money Laundering Act, 2002, can function with a single-member bench as per Section 6(5)(b) of the Act, which empowers the Chairperson to constitute ....
The court established that the Adjudicating Authority under the PMLA, while exercising powers that may appear judicial, operates primarily as an administrative body, and its composition does not nece....
Judicial Members are essential in significant cases under the Prevention of Money Laundering Act, and modification applications to revisit judgments after many years are typically viewed as an abuse ....
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