2019 Supreme(Mad) 1019
IN THE HIGH COURT OF JUDICATURE AT MADRAS
K. RAVICHANDRABAABU, J.
B. Narayanaswamy - Appellant
Versus
Deputy Director, Enforcement Directorate Chennai Zone, Ministry of Finance, Department of Revenue, Chennai & Others - Respondents
W.P.Nos. 33158 & 33163 of 2018 & W.M.P.No. 38470 & 38480 of 2018
Decided On : 04-04-2019
For the Petitioner:V.C. Janardhanan, Advocate.
For the Respondent: Hema, Special Public Prosecutor (Directorate of Enforcement).
Headnote:
Constitution of India, 1950 - Article 21 - Indian Penal Code ,1860 - Section 120B read with 420, 468 , 193 , 228 and 471 - Prevention of Money Laundering Act - section 50 ,50(2) and 50(3) - Protection of Human Rights Act - Foreign Exchange Regulation Act - Offence of Criminal conspiracy – Cheating and dishonestly inducing delivery of property – Forgery – False evidence – F.I.R - Petitioner has been complying with summons issued by first respondent, being promptly appearing for enquiry by rendering utmost cooperation - On petitioner received summons from first respondent to appear in person - However, on petitioner received telephonic summons from the first respondent to appear in person - Due to medical emergency involving petitioners mother, he was not able to do so and informed same to concerned official and requested him to permit petitioner to appear - When petitioner appeared before first respondent to his shock and surprise they confronted petitioner in an aggressive manner and compelled him to make statements which they desired in writing against certain persons, who are in no manner related to petitioner or on-going enquiry - Petitioner was unable to recover immediately -Held, Court do not think that above said relief need to be granted to petitioner in view of his categorical averment made in affidavit filed in support of second writ petition in W.P.No. stating that he had issued a letter to respondents retracting his statement which was obtained afresh from out of coercion - When such retraction has already taken place, law will have to take its own course to decide about veracity of statement already obtained from petitioner and effect of such retraction, at the appropriate time, during proceedings - First respondent shall permit lawyer to be present with petitioner at time of interrogation, however, making it clear that such lawyer should be made to sit at visible distance at back of petitioner but beyond hearing distance from place of interrogation - In other words, seating arrangement of the petitioner and his lawyer should be made in such a way that both should not have eye contact with each other - Both writ petitions are disposed of accordingly - Consequently, connected miscellaneous petitions are closed.
W.P.No.33158/2018 is filed for a Mandamus directing the first respondent, not to cause any physical, mental or verbal harassment to the petitioner during the pendency of investigation in the proceedings in File No.ECIR/CEZO/05/2016.
2. W.P.No.33163/2018 is filed for a Mandamus directing the first respondent to re-record the statement to be tendered under section 50 of the Prevention of Money Laundering Act and conduct the proceedings in File No.ECIR/CEZO/05/2016 in camera and in presence of the Advocate appointed by the petitioner.
3. The petitioner in both the writ petitions is one and the same.
4. The case of the petitioner in both the writ petitions is as follows:
He is the Director in M/s.Best & Crompton Engineering Projects Limited, engaged in the business of Engineering, procurement, construction and trading. The Central Bureau of Investigation, Bangalore, registered F.I.R. on 01.02.2016 against M/s. Best & Cromption Engineering Projects Limited and its Managing Director for the offence under Section 120B read with Sections 420, 468 and 471 of the Indian Penal Code on the basis of a complaint given by the Central Bank of India. On the basis of the above said F.I.R, the Enforcement Directorate, registered a case in ECIR.No.CEZO/05/2016 dated 27.04.2016, alleging that a prima facie case for the offence of money laundering under sections 3 and 4 of the Prevention of Money Laundering Act appears to have been made out. On completion of investigation by the Central Bureau of Investigation, a charge sheet was filed on 15.06.2017 before the Additional Chief Metropolitan Magistrate, Egmore, Chennai. The petitioner herein is arrayed as Accused No.4 therein. The petitioner has been complying with the summons issued by the first respondent, being promptly appearing for enquiry by rendering utmost cooperation. On 02.11.2018, the petitioner received summons from the first respondent to appear in person on 22.11.2018. However, on 15.11.2018, the petitioner received telephonic summons from the first respondent to appear in person on 16.11.2018. Due to medical emergency involving the petitioner's mother, he was not able to do so and informed the same to the concerned official and requested him to permit the petitioner to appear on 19.11.2018. When the petitioner appeared before the first respondent, to his shock and surprise, they confronted the petitioner in an aggressive manner and compelled him to make statements, which they desired in writing, against certain persons, who are in no manner related to the petitioner or the on-going enquiry. The petitioner was intimidated by the 1st respondent. They also threatened to cause physical harm and injury to the petitioner if the petitioner did not agree to give the said statement. As the petitioner refused to make such false statement, the 1st respondent had resorted to barbaric treatment by beating the petitioner with lathi. The petitioner was subjected to third degree torture and harassment. Out of fear and apprehension, the petitioner unwillingly relented to give written statement which were not voluntary, naming certain persons who were not involved in the transactions. The petitioner was unable to recover immediately. He issued a letter dated 06.12.2018 to the respondent to retract the statement which was obtained from him on 19.11.2018. The act of the first respondent is expressly illegal and unconstitutional. The facts enunciated above would reveal that the first respondent was not only biased but also detriment in making false case so as to secure the convention as per their desire for the reasons best known to them. The act of the first respondent in torturing the petitioner and causing mental treatment is grossly in violation of Article 21 of the Constitution of India and the Prevention of Money Laundering Act. The statement made by the petitioner on 19.11.2018, on threat and duress, cannot be used against him in any other proceedings. Therefore, the present writ petitions are fi