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S. M. SUBRAMANIAM, V. SIVAGNANAM
Jain Housing & Construction Ltd. , (presently M/s Jain Housing), Represented by its Managing Director, Thiru. Sandeep Mehta – Appellant
Versus
Directorate of Enforcement, Represented by Assistant Director – Respondent
ORDER :
(S.M. Subramaniam, J.) :
(Prayer: Writ Petition filed under Article 226 of the Constitution of India to issue a Writ of Certiorari, to call for the entire records in connection with the summon No.PMLA/SUMMON/CEO/2022/658 issued by the respondent dated 08.07.2022 and F.no.ECIR/CEZO-1/50/2022 and quash the same as illegal and unconstitutional.)
The writ petition has been instituted questioning the validity of Summon issued by the Assistant Director of Directorate of Enforcement in proceedings dated 08.07.2023.
2. The impugned Summon has been issued in exercise of the powers conferred upon the Authority under sub-Section (2) and sub-Section (3) of Section 50 of Prevention of Money Laundering Act, 2002 (hereinafter referred to as 'PMLA Act').
3. Section 50 of the PMLA Act enumerates powers of Authorities regarding Summons, production of documents and to give evidence, etc., Sub-Section (1), (2) and (3) are extracted hereunder:
(a) discovery and inspection’
(b
The court established that summons under the PMLA can only be challenged on limited grounds, emphasizing the importance of allowing the competent authority to adjudicate the merits of the case.
(1) Money laundering – Law does not mandate taking of prior permission from Magistrate for carrying out further investigation, even after filing of charge-sheet.(2) Mere issuance of summons to accuse....
Mere summons does not constitute a positive action entitling petitioner to question it in a writ petition – Mere charge-sheet or show-cause notice does not give rise to any cause of action.
The Enforcement Directorate can issue summons for further investigation under the PMLA Act without prior permission from the Special Court, and this does not violate the accused's rights under Articl....
Compliance with summons under PMLA is mandatory unless issued by an incompetent authority or with allegations of malafides; courts should not interfere at the summons stage.
Writ Petitions challenging summons under Special enactments are not maintainable unless issued by an incompetent authority or tainted with malafides; cooperation in investigations is essential.
Money Laundering – Issuance of summons – PMLA is a self-contained Code and dispensations envisaged thereunder, must prevail – At the stage of issue of summons, the person cannot claim protection unde....
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