The court emphasizes that when statutory remedies are available, the extraordinary jurisdiction under Article 226 of the Constitution should not be exercised unless there are exceptional reasons to do so.

JUDGMENT :

Through the process of money laundering, those involved in crimes have harnessed an armoury to drain the economic stability and erode the integrity of the country. The need to obviate such threats was identified by the United Nations. Through its conventions and resolutions, the signatory countries to the United Nations were warned of the perils of such baneful conduct. India responded with a Statute named Prevention of Money Laundering Act, 2002 (for short 'the PMLA'). Petitioners challenge a proceeding initiated under the aforestated statute.

2. Properties of the petitioners have been subjected to five different provisional attachments under the PMLA. The challenge in the writ petition is against the provisional attachment order dated 09.06.2023, as well as the order dated 12.05.2022, freezing the movable properties, including mutual funds and fixed deposits of the writ petitioners. The aforesaid two orders are produced in the writ petition as Ext.P25 as well as Ext.P21, respectively. There is an ancillary challenge against the seizure memo, which is produced as Ext.P22

3. The second petitioner is a Company which is the Distributor of Sikkim Lotteries. The first petitioner is its Managing Director. The issue relates to the period 01.04.2009 to 31.08.2010. Petitioners are the first and third accused in C.C. No.218 of 2015 on the files of the Chief Judicial Magistrate, Ernakulam. The crime was investigated by the CBI. Based on the above case, the Enforcement Directorate (for short 'the ED') registered a case as ECIR No.4 of 2014, which is now pending before the Special Court (Principal Sessions Court) Ernakulam as S.C. No.533 of 2018 under the PMLA. The offences alleged in C.C. No.218 of 2015 pending before the Chief Judicial Magistrate, Ernakulam, are under sections 120(b) and 420 of the Indian Penal Code, 1860 apart from various provisions of the Lotteries (Regulation) Act, 1998 and the Lotteries (Regulation) Rules, 2010. It must be mentioned that one Sri.N.Jayamurugan is the fifth accused in the aforementioned case before the Chief Judicial Magistrate.

4. Of the six provisional attachment orders, except for one attachment of Rs.16 crores, all other attachments are over the properties of the petitioners.

5. Petitioners allege that the proceeds of crime estimated by the ED is Rs.910,29,87,566/-crores, which estimation is notional, and the attachments have been effected on that basis. It is alleged that the ED had presumed that the proceeds of the crime were generated through a partnership firm by the name 'M/s M.J Associates' in which the first petitioner was a partner having only 51% while Sri.N.Jayamurugan, another accused, was a partner having 49%. The contention raised by the petitioners is that on the estimated amount of Rs.910.29 crores, only 51% can, even going by the case of the ED, be attributed to the first petitioner. The said 51% would total to only Rs.464.25 crores, while the balance of Rs. 446.04 crores can only be to the share of Sri.N.Jayamurugan. Reliance is placed on the complaint filed in S.C. No.533 of 2018 for the aforementioned estimation. Petitioners further allege that despite the ED estimating the proceeds of crime attributable to the first petitioner only to 51% in M/s M.J Associates, they have provisionally attached properties of the petitioners for almost Rs.894 crores (Rs.910 crores minus Rs.16 crores) instead of confining the attachment to Rs.464.25 crores.

6. Petitioners allege that after effecting provisional attachments, over the properties of the petitioners, to the extent of Rs.434,70,40,759/-by the first five provisional attachments, (excluding the attachment for Rs.16 crores), the ED issued Ext.P25 Provisional Attachment Order No.3 of 2023 on 09.06.2023 under section 5 of the PMLA for a further amount of Rs.459,07,42,047/-against the properties of the petitioners. The provisional