SC on Money Laundering.pdf

7/21/2019 SC on Money Laundering.pdf

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1

REPORTABLE

IN THE SUPREME COURT OF INDIA

CRIMINAL APPELLATE JURISDICTION

CRIMINAL APPEAL NO. 1706 OF 2015(Arising out of SLP(Crl.) No.!"# of $"#%)

&AUTAM 'UNDU APPELLANT(S)

*ERSUS

MANOJ 'UMAR+ ASSISTANT DIRECTOR+

EASTERN RE&ION+ DIRECTORATE OF

ENFORCEMENT (PRE*ENTION OF MONE,LAUNDERIN& ACT) &O*T. OF INDIA RESPONDENT(S)

J U D G M E N T

Pinaki Chanda Gh!"#$ J.

1. L-/- grnt-0.

2. T1is 22-l+ 34 s2-5il l-/-+ is 0ir-5t-0 ginst t1-

6u0g7-nt n0 or0-r 0t-0 $#st Jul4+ $"#% 2ss-0 34 t1- Hig1

Court of Cl5utt in CRM No.$8% of $"#%+ 91-r-34 t1- Hig1

Court 1s r-6-5t-0 22-llnt:s 22li5tion for 3il un0-r

S-5tion ;<= of t1- Co0- of Cri7inl Pro5-0ur-+ #=!<. T1-

22-llnt 9s rr-st-0 on $%."<.$"#% in r-ltion to n off-n5-

ll-g-0 to 1/- 3--n 5o77itt-0 un0-r S-5tion < of t1-



2

Pr-/-ntion of Mon-4 Lun0-ring A5t+ $""$+ (1-r-inft-r

r-f-rr-0 to s >PMLA>).

%. T1- 22-llnt is t1- C1ir7n of Ros- *ll-4 R-l Estt-

Constru5tion Lt0. (1-r-inft-r r-f-rr-0 to s t1- >Ros- *ll-4>)+

2u3li5 5o72n4 in5or2ort-0 in t1- 4-r #=== n0

r-gist-r-0 un0-r t1- Co72ni-s A5t+ #=%. C-rtin

non?5on/-rti3l- 0-3-ntur-s 9-r- issu-0 34 t1- Ros- *ll-4 34

:2ri/t- 2l5-7-nt 7-t1o0.: No 0/-rtis-7-nts -t5. 9-r-

issu-0 to t1- 2u3li5. T1- si0 0-3-ntur-s 9-r- issu-0 to t1-

-72lo4--s of t1- Co72n4 n0 to t1-ir fri-n0s n0 sso5it-s

ft-r fulfilling t1- for7liti-s for 2ri/t- 2l5-7-nt of

0-3-ntur-s. T1us+ t1- 22-llnt 5oll-5t-0 7on-4 34 issuing

s-5ur-0 0-3-ntur-s 34 94 of 2ri/t- 2l5-7-nt in 5o72lin5-

9it1 t1- gui0-lin-s issu-0 34 t1- S-5uriti-s n0 E@51ng-

or0 of In0i fro7 ti7- to ti7-.

&. On $."<.$"#<+ t1- A06u0i5ting Offi5-r+ SEI+ 2ss-0

n or0-r i72osing 2-nlt4 of Rs.# 5ror- u2on t1- Ros- *ll-4

for /ioltion of t1- 2ro/isions of S-5tions ##(C) of t1-

S-5uriti-s n0 E@51ng- or0 of In0i A5t+ #==$ (1-r-ft-r

r-f-rr-0 to s t1- SEI A5t) 91i51 9s r-0u5-0 to Rs.#" lB1s



3

34 t1- S-5uriti-s A22-llt- Tri3unl+ Mu73i. A l-tt-r 9s

issu-0 on $.".$"#< 34 t1- S-5uriti-s n0 E@51ng- or0

of In0i (>SEI>) to t1- 22-llnt Ros- *ll-4 infor7ing t1-

22-llnt 3out t1- off-n5-s ll-g-0 to 1/- 3--n 5o77itt-0

34 it un0-r t1- Co72ni-s A5t+ SEI A5t R-gultions+ n0

S-5tion ;"% of t1- In0in P-nl Co0-. T1- 22-l fil-0 34 t1-

22-llnt 3-for- t1- S-5uriti-s A22-llt- Tri3unl 9s llo9-0

on #$.#$.$"#<+ 1ol0ing t1t t1- 22-llnt Co72n4 1s

r-2i0 ll t1- 7on-4 5oll-5t-0 fro7 t1- in/-stors. It 9s

furt1-r 1-l0 34 t1- S-5uriti-s A22-llt- Tri3unl t1t t1-r- r-

no groun0s for /ioltion of S-5tion ##(C)(<) of t1- SEI A5t.

5. On t1- 3sis of t1- for-7-ntion-0 l-tt-r 0t-0

$.".$"#< issu-0 34 SEI+ t1- r-s2on0-nt fil-0 r-2ort

3-ing ECIR No.'IO"$$"#; 0t-0 $!."$.$"#;+ ll-ging

5o77ission of off-n5- 34 t1- Ros- *ll-4 n0 its offi5-rs+

2unis13l- un0-r S-5tion $; of t1- SEI A5t. T1-r-ft-r+

s-r51 n0 s-iur- 9s 5on0u5t-0 t t1- offi5-s of t1- Ros-

*ll-4.

6. A 5o72lint 9s fil-0 34 t1- r-s2on0-nt ut1oriti-s+

3-ing C#;$#; of $"#<+ ll-ging t1t t1- Ros- *ll-4



4

trnsf-rr-0 t1- 7on-4 ris-0 34 issu- of 0-3-ntur-s fro7 t1-

55ount of on- 5o72n4 to t1t of not1-r 5o72n4. It is lso

ll-g-0 t1t t1- 7on-4 5oll-5t-0 34 issuing t1- 0-3-ntur-s for

t1- 2ur2os- of on- 3usin-ss 1s 3--n in/-st-0 in so7- ot1-r

3usin-ss. T1- 2ro5--0ings un0-r S-5tion $; of t1- SEI A5t

1s 3--n 51ll-ng-0 in t1- Hig1 Court 34 94 of r-/ision n0

t1- si0 r-/ision is 2-n0ing for 1-ring n0 furt1-r 2ro5--0ing

of t1- 5o72lint 5s-+ 3-ing C#;$#; of $"#<+ 1s 3--n

st4-0 34 t1- Hig1 Court. T1- Hig1 Court lso 0ir-5t-0 t1-

r-s2on0-nt not to tB- n4 5o-r5i/- 7-sur- ginst t1-

22-llnt.

7. *i0- its or0-r 0t-0 #8.".$"#;+ SEI 0ir-5t-0 t1-

22-llnt Ros- *ll-4 to r-fun0 t1- 7on-4 to t1- 5usto7-rs of

t1- As1ir30 S51-7-. T1is or0-r 9s 51ll-ng-0 3-for- t1-

S-5uriti-s A22-llt- Tri3unl 34 94 of A22-l No.$<< of

$"#;. On #=.".$"#;+ S1o9 Cus- Noti5- un0-r S-5tion 8(#)

of t1- PMLA 9s s-r/-0 u2on Ros- *ll-4 n0 its offi5ils.

Ros- *ll-4 fil-0 9rit 2-tition 3-for- t1- Hig1 Court of

Cl5utt 51ll-nging t1- si0 S1o9 Cus- Noti5-. T1- si0

9rit 2-tition 9s 0is7iss-0 34 t1- l-rn-0 Singl- Ju0g- of t1-



5

Hig1 Court. T1-r-ft-r+ t1- 7tt-r 9s tB-n in 22-l 3-for-

t1- Di/ision -n51 of t1- Cl5utt Hig1 Court+ 3-ing AST

No.<;% of $"#;. T1- Di/ision -n51 of t1- Hig1 Court

0is7iss-0 t1- si0 22-l n0 0ir-5t-0 t1- 22-llnt Ros-

*ll-4 to 22-r 3-for- t1- A06u0i5ting Aut1orit4 un0-r

S-5tion 8 of t1- PMLA n0 0ir-5t-0 t1- A06u0i5ting Aut1orit4

to 0-5i0- t1- 2r-li7inr4 o36-5tions s 74 3- ris-0 34 t1-

Ros- *ll-4+ in5lu0ing t1- 22li53ilit4 of t1- PMLA s lso t1-

/li0it4 of t1- s-r51 n0 s-iur- ginst Ros- *ll-4. It 9s

furt1-r 0ir-5t-0 t1t t1- A06u0i5ting Aut1orit4 s1oul0 2ss

r-son-0 or0-r in t1- 7tt-r n0 5o77uni5t- t1- s7- to

t1- 22-llnt Ros- *ll-4 9it1in t9o 04s fro7 t1- 0t- of

2ssing su51 or0-r.

'. A 5o72lint 9s fil-0 34 t1- r-s2on0-nt on A2ril $+ $"#%+

in t1- Court of l-rn-0 C1i-f Ju0g-+ Cit4 S-ssions Court t

'olBt+ ginst t1- 22-llnt un0-r S-5tion ; of PMLA+

t1oug1 no off-n5- is 70- out ginst t1- 22-llnt un0-r

S-5tion < of t1- PMLA. T1- si0 5o72lint 1s 3--n r-gist-r-0

s ML Cs- No.< of $"#%. D-s2it- 1/ing full4 5oo2-rt-0 9it1

t1- in/-stigtion+ t1- 22-llnt 9s rr-st-0 on $%."<.$"#% on



6

sus2i5ion of 1/ing 5o77itt-0 n off-n5- 2unis13l- un0-r

t1- 2ro/isions of t1- PMLA n0 is 0-tin-0 in 5usto04 sin5-

t1-n.

(. G1il- t1- 22-llnt 9s in 5usto04+ 1is ft1-r -@2ir-0 on

".";.$"#% u2on 91i51 1- 7o/-0 n 22li5tion 3-for- t1-

Hig1 Court of Cl5utt for int-ri7 3il to 2-rfor7 t1- rituls

for 1is 0-5-s-0 ft1-r. T1- Hig1 Court /i0- its or0-r

"8.";.$"#%+ 0ir-5t-0 r-l-s- of t1- 22-llnt on 2ro/isionl

3il for t9o 9--Bs on t1- 5on0itions 7-ntion-0 in t1- si0

or0-r. On 5o72l-tion of t1- 2-rio0 of 2ro/isionl 3il+ t1-

22-llnt 0ul4 surr-n0-r-0 3-for- t1- Court of l-rn-0 C1i-f

Ju0g-+ Cit4 S-ssions Court t 'olBt.

10. On "."!.$"#%+ t1- 22-llnt fil-0 fr-s1 3il

22li5tion un0-r S-5tion ;<= of t1- Co0- of Cri7inl

Pro5-0ur- 3-for- t1- Hig1 Court of Cl5utt+ 3-ing CRM

No.$8% of $"#%. *i0- i72ugn-0 6u0g7-nt n0 or0-r t1- Hig1

Court 1s r-6-5t-0 t1- si0 22li5tion of t1- 22-llnt

1ol0ing t1t no or0-r 1s 4-t 3--n 2ss-0 34 n4 5o72-t-nt

Court of l9 t1t no off-n5- is 70- out ginst t1- 22-llnt

un0-r S-5tion $; of t1- SEI A5t. It is 2-rtin-nt to 7-ntion



7

1-r- t1t 5ri7inl r-/ision 2r4ing for us1ing of t1-

2ro5--0ings initit-0 ginst t1- 22-llnt un0-r S-5tion $; of

t1- SEI A5t is still 2-n0ing for 0-5ision 3-for- t1- Hig1

Court.

11. Aggri-/-0 34 t1- r-6-5tion of t1- 3il 22li5tion fil-0

un0-r S-5tion ;<= of t1- Co0- of Cri7inl Pro5-0ur-+ t1-

22-llnt 1s 22ro51-0 t1is Court t1roug1 t1is 22-l 34

s2-5il l-/-.

12. G- 1/- 1-r0 Mr. &o2l Su3r7niu7+ l-rn-0 s-nior

5ouns-l 22-ring for t1- 22-llnt n0 lso Mr. Rn6it

'u7r+ l-rn-0 Soli5itor &-n-rl for In0i. For 2ro2-r

22r-5ition of su37ission 70- 34 l-rn-0 5ouns-l

22-ring for t1- 2rti-s+ it 9oul0 3- n-5-ssr4 to 5onsi0-r t1-

ut1oriti-s 5it-0 on 3-1lf of t1- 3ot1 2rti-s.

1%. Mr. &o2l Su3r7niu7+ l-rn-0 s-nior 5ouns-l

22-ring for t1- 22-llnt su37itt-0 t1t t1-r- is no off-n5-

70- out un0-r PMLA ginst t1- 22-llnt s S-5tion $; of

t1- SEI A5t is not s-2rt- s51-0ul-0 off-n5- un0-r t1-

PMLA. S-5tion #$A r-0 9it1 S-5tion $; of SEI A5t is t1-

s51-0ul-0 off-n5- un0-r t1- PMLA sin5- $""=. N-it1-r t1-



8

5o72lint fil-0 34 SEI nor t1- 5o72lint fil-0 34 t1-

r-s2on0-nt (91i51 is 3s-0 -ntir-l4 on SEI 5o72lint)

2ros-5ut-s t1- 22-llnt for /ioltion of S-5tion #$A r-0 9it1

S-5tion $; of t1- SEI A5t.

1&. A55or0ing to l-rn-0 s-nior 5ouns-l for t1- 22-llnt+

S-5tion $; of t1- SEI A5t 9s 2rint-0 s-2rt-l4 in t1-

S51-0ul- of PMLA for t1- first ti7- /i0- PMLA (A7-n07-nt)

A5t+ $"#$ 9.-.f. #%."$.$"#<+ 91i51 is 5l-rl4 n in0/-rt-nt

t42ogr21i5l -rror. T1- 0-s5ri2tion of off-n5- gi/-n un0-r

2rgr21 ## of t1- S51-0ul- to PMLA for S-5tion $; of t1-

SEI A5t r-0s s >5uisition of s-5uriti-s or 5ontrol>+ 91i51

is 0iff-r-nt fro7 t1- 0-s5ri2tion gi/-n to t1- S-5tion un0-r t1-

SEI A5t+ 91i51 0-s5ri3-s t1- S-5tion s >Off-n5-s>. Rt1-r

t1- 1-0ing >5uisition of s-5uriti-s or 5ontrol> is 2rt of t1-

1-0ing of S-5tion #$A r-0 9it1 S-5tion $; 91i51 is t1-

s51-0ul-0 off-n5-. T1- r-l-/nt -@tr5t of t1- S51-0ul- to t1-



9

PMLA+ s it stoo0 ft-r t1- $""= A7-n07-nt+ is s follo9s

Paa)a*h ' + Th# ,#-i/i#" and E-han)# B!ad ! IndiaA-/$ 1((2 15 ! 1((23

#$A r-0 9it1S-5tion $;

Pro1i3ition of 7ni2ulti/- n00-5-2ti/- 0-/i5-s+ insi0-r tr0ingn0 su3stntil 5uisition of s-5uriti-s or 5ontrol

T1- r-l-/nt -@tr5t of t1- S51-0ul- to t1- PMLA s it stn0s

to04 ft-r t1- A7-n07-nt A5t of $"#$ 9.-.f. #%."$.$"#< is s

follo9s

Paa)a*h 11 + Th# ,#-i/i#" and E-han)# B!ad ! IndiaA-/$ 1((2 15 ! 1((23

#$A r-0 9it1

S-5tion $;

Pro1i3ition of 7ni2ulti/- n0

0-5-2ti/- 0-/i5-s+ insi0-r tr0ingn0 su3stntil.

S-5tion $; A5uisition of s-5uriti-s or 5ontrol

15. T1- l-rn-0 s-nior 5ouns-l for t1- 22-llnt su37itt-0

t1t if t1- off-n5-s 2r-s5ri3-0 ginst t1- s-5tions in

2rgr21 ## in 3ot1 t1- ro9s r- r-0 tog-t1-r+ t1- s7- 9ill

22-r s t1- 1-0ing of S-5tion #$A of t1- SEI A5t. A

5on6oint r-0ing of t9o ro9s un0-r 2rgr21 ## of Prt A of

t1- S51-0ul- 9oul0 s1o9 t1t t1- s7- is in su3stn5-



10

r-2ro0u5tion of 2rgr21 8 of Prt of t1- S51-0ul- of PMLA

s 9s 2r-/iling 2rior to t1- 7-n07-nt -ff-5t-0 on

#%."$.$"#< n0 t1-r-for-+ t1- 2osition r-7ins un51ng-0.

S-5tion #$A of t1- SEI A5t is s follo9s

4P!hii/i!n ! ani*a/i8# and d#-#*/i8# d#8i-#"$in"id# /adin) and ""/an/ia a-9i"i/i!n ! "#-i/i#" !-!n/!.

#$A. No 2-rson s1ll 0ir-5tl4 or in0ir-5tl4 ?

() us- or -72lo4+ in 5onn-5tion 9it1 t1- issu-+ 2ur51s- orsl- of n4 s-5uriti-s list-0 or 2ro2os-0 to 3- list-0 on r-5ogni-0 sto5B -@51ng-+ n4 7ni2ulti/- or 0-5-2ti/-0-/i5- or 5ontri/n5- in 5ontr/-ntion of t1- 2ro/isions of t1isA5t or t1- rul-s or t1- r-gultions 70- t1-r-un0-r

(3) -72lo4 n4 0-/i5-+ s51-7- or rtifi5- to 0-fru0 in5onn-5tion 9it1 issu- or 0-ling in s-5uriti-s 91i51 r- list-0or 2ro2os-0 to 3- list-0 on r-5ogni-0 sto5B -@51ng-

(5) -ngg- in n4 5t+ 2r5ti5-+ 5ours- of 3usin-ss 91i51o2-rt-s or 9oul0 o2-rt- s fru0 or 0-5-it u2on n4 2-rson+in 5onn-5tion 9it1 t1- issu-+ 0-ling in s-5uriti-s 91i51 r-list-0 or 2ro2os-0 to 3- list-0 on r-5ogni-0 sto5B -@51ng-+in 5ontr/-ntion of t1- 2ro/isions of t1is A5t or t1- rul-s ort1- r-gultions 70- t1-r-un0-r

(0) -ngg- in insi0-r tr0ing

(-) 0-l in s-5uriti-s 91il- in 2oss-ssion of 7t-ril ornon?2u3li5 infor7tion or 5o77uni5t- su51 7t-ril ornon?2u3li5 infor7tion to n4 ot1-r 2-rson+ in 7nn-r91i51 is in 5ontr/-ntion of t1- 2ro/isions of t1is A5t or t1-rul-s or t1- r-gultions 70- t1-r-un0-r

(f) 5uir- 5ontrol of n4 5o72n4 or s-5uriti-s 7or- t1nt1- 2-r5-ntg- of -uit4 s1r- 52itl of 5o72n4 91os-



11

s-5uriti-s r- list-0 or 2ro2os-0 to 3- list-0 on r-5ogni-0sto5B -@51ng- in 5ontr/-ntion of t1- r-gultions 70-un0-r t1is A5t.>

S-5tion $; of t1- SEI A5t r-0s s follo9s

42&. O#n-#". ? (#) Git1out 2r-6u0i5- to n4 9r0 of 2-nlt4 34 t1- A06u0i5ting Offi5-r un0-r t1is A5t+ if n4 2-rson5ontr/-n-s or tt-72ts to 5ontr/-n- or 3-ts t1-5ontr/-ntion of t1- 2ro/isions of t1is A5t or of n4 rul-s orr-gultions 70- t1-r-un0-r+ 1- s1ll 3- 2unis13l- 9it1i72rison7-nt for t-r7 91i51 74 -@t-n0 to t-n 4-rs+ or9it1 fin-+ 91i51 74 -@t-n0 to t9-nt4?fi/- 5ror- ru2--s or 9it13ot1.

($) If n4 2-rson fils to 24 t1- 2-nlt4 i72os-0 34 t1-A06u0i5ting Offi5-r or fils to 5o72l4 9it1 n4 of 1is0ir-5tions or or0-rs+ 1- s1ll 3- 2unis13l- 9it1i72rison7-nt for t-r7 91i51 s1ll not 3- l-ss t1n on-7ont1+ 3ut 91i51 74 -@t-n0 to t-n 4-rs or 9it1 fin-+ 91i5174 -@t-n0 to t9-nt4?fi/- 5ror- ru2--s or 9it1 3ot1.>

16. A55or0ing to t1- l-rn-0 s-nior 5ouns-l for t1- 22-llnt+

t1- f5t t1t no n-9 off-n5- 9s 7-nt to 3- 00-0 34 94 of

t1- $"#$ 7-n07-nt+ is 5l-r fro7 2lin r-0ing of t1-

>Stt-7-nt of O36-5ts n0 R-sons> to t1- A7-n07-nt of

$"#$+ s 9-ll s t1- >Not-s on Clus-s> on t1- A7-n07-nt

A5t+ $"#$ n0 fro7 5o72rison of t1- S51-0ul-s of PMLA of

$""= n0 7-n0-0 PMLA of $"#$. It is su37itt-0 34 t1-

l-rn-0 s-nior 5ouns-l for t1- 22-llnt t1t t1- r-s2on0-nt is

9rongl4 r-0ing S-5tion $; of SEI A5t si72li5itor s



12

s-2rt- s51-0ul-0 off-n5-+ 91-r-s S-5tion $; is g-n-rl

2-nl 2ro/ision for /ioltion of n4 n0 -/-r4 2ro/isions of t1-

SEI A5t or n4 rul-s or r-gultions 70- t1-r-un0-r.

17. It 9s furt1-r su37itt-0 34 t1- l-rn-0 s-nior 5ouns-l

22-ring for t1- 22-llnt t1t if t1- int-nt of t1- l-gisltur-

9s to in5or2ort- S-5tion $; of SEI A5t lon- s n off-n5-+

in t1t -/-nt+ t1-r- 9oul0 1/- 3--n no n-5-ssit4 to

in5or2ort- >#$A r-0 9it1 S-5tion $;> ins7u51 s S-5tion

$; of t1- SEI A5t 2r-s5ri3-s t1t ll /ioltions of 2ro/isions

of SEI A5t 9oul0 3- 2unis13l- in t-r7s of S-5tion $; of t1-

SEI A5t+ #==$. H0 t1t 3--n t1- int-ntion of t1- l-gisltur-+

t1- l-gisltur- 9oul0 1/- 7-ntion-0 -it1-r >off-n5-s n0

2-nlti-s un0-r SEI A5t+ #==$> or onl4 S-5tion $; n0 t1-

1-0ing t1-r-of+ s s51-0ul-0 off-n5-. T1-r- 9s or 5oul0 3-

no n-5-ssit4 to s2-5if4 s-5tion #$A s-2rt-l4 if t1- l-gisltur-

int-n0-0 to in5or2ort- S-5tion $; s s-2rt- s51-0ul-0

off-n5-.

1'. Furt1-r+ t1- Enfor5-7-nt Dir-5tort-:s o9n 0o5u7-nt

titl-0 >FAs> on t1-ir 9-3sit- 7-ntions t1- S51-0ul- to PMLA

91i51 tr-ts S-5tion #$A r9 S-5tion $; of t1- SEI A5t s



13

s51-0ul-0 off-n5- n0 not S-5tion $; lon-. Si7ilrl4+ t1-

S51-0ul- to PMLA on t1- 9-3sit- of t1- Ministr4 of

Finn5-?Finn5il Int-llig-n5- Unit lso 7-ntions S.#$A r9

$; of t1- SEI A5t s t1- s51-0ul-0 off-n5- n0 not S-5tion

$; lon-. T1is r-fl-5ts t1- ut1orit4go/-rn7-nt:s o9n

un0-rstn0ing of t1- S51-0ul-. T1us+ it 5n 3- sf-l4 si0 t1t

t1- 2rinting of S-5tion $; of SEI A5t s-2rt-l4 un0-r t1-

S51-0ul- to t1- PMLA is /i0- n in0/-rt-nt t42ogr21i5l

-rror t1t 1s 5r-2t into t1- l-gisltion s is 22r-nt fro7 t1-

7rginl not- t1-r-in. It is n 55-2t-0 2rin5i2l- of

int-r2r-ttion of sttut-s t1t 91-r- n in0/-rt-nt

gr77ti5l or ot1-r -rror 1s 2l23l4 5r-2t into t1-

l-gisltion+ t1- Court is t li3-rt4 to 0isr-gr0 t1- -rror in

22l4ing t1- sttut-. (A-!n" Ina"/-/# L/d. 8. Ch#ian

:#k#; C!n"/-/i!n C!. P3 L/d.+ ($"#") 8 SCC $;).

1(. L-rn-0 s-nior 5ouns-l for t1- 22-llnt furt1-r

su37itt-0 t1t t1- 0-s5ri2tion gi/-n to t1- off-n5- un0-r

S-5tion $; of SEI A5t+ in t1- S51-0ul- to PMLA is

>5uisition of s-5uriti-s or 5ontrol>+ n0 -/-n if S-5tion $; is

tr-t-0 s s-2rt- s51-0ul-0 off-n5-+ t1- 9or0s us-0 in t1-



14

0-s5ri2tion 1/- to 3- gi/-n 7-ning to n0 its 22li5tion

1s to 3- r-stri5t-0 to t1- off-n5- 0-s5ri3-0 un0-r it in t1-

S51-0ul-. T1- l-rn-0 s-nior 5ouns-l for t1- 22-llnt furt1-r

su37itt-0 t1t t1is Court 1s 1-l0 in nu7-rous 6u0g7-nts

t1t t1- Court s1oul0 gi/- 7-ning to -51 n0 -/-r4 9or0

us-0 34 t1- l-gisltur- n0 it is not soun0 2rin5i2l- of

5onstru5tion to 3rus1 si0- 9or0s in sttut- s 3-ing

in22osit- sur2lus+ if t1-4 5n 1/- 2ro2-r 22li5tion in

5ir5u7stn5-s 5on5-i/3l- 9it1in t1- 5ont-72ltion of t1-

sttut-. KS-- Gd#8a//a :<,,, Ma;adi/ 8. ,/a/# !

Mahaa"h/a+ ($""#) ; SCC %<; t 2r $. It 1s lso 3--n

1-l0 34 t1is Court t1t >t1- 5ourts l94s 2r-su7- t1t t1-

l-gisltur- ins-rt-0 -/-r4 2rt t1-r-of for 2ur2os- n0 t1-

l-gislti/- int-nt is t1t -/-r4 2rt of t1- sttut- s1oul0 1/-

-ff-5t. T1- l-gisltur- is 0--7-0 not to 9st- its 9or0s or to

s4 n4t1ing in /in n0 5onstru5tion 91i51 ttri3ut-s

r-0un0n54 to t1- l-gisltur- 9ill not 3- 55-2t-0 -@5-2t for

5o72-lling r-sons.> [ Visitor, AMU v. K.S. Misra,

($""!) 8 SCC %=<+ t 2r #<).



15

20. T1- r-f or -+ l-r n- 0 s -nior 5oun s-l for t1-

22-llnt s u3 7i tt- 0+ t 1- 9or 0s >5uisition of

s-5uriti-s or 5ontrol>+ 22-ring n-@t to S-5tion $; of

t1- SEI A5t in t1- S51-0ul- to t1- PMLA 7ust 3-

gi/-n 0u- 7-n ing n0 5ons t ru-0 t o 7-n t1t

onl4 t1t -@t-nt o f t1- off-n5- 91i51 2-rtins to

>>5uisition of s-5uriti-s or 5ontrol> is 2unis13l-

off-n5- un0-r PMLA n0 not n4 ot1-r /ioltion un0-r

t1- SEI A5t.

21. It 9s furt1-r su37itt-0 34 t1- l-rn-0 s-nior

5ouns-l for t1- 22-llnt t1t S-5tion $; lon- 5nnot

34 its-lf 3- s51-0ul-0 off-n5- un0-r t1- PMLA sin5-

it 0o-s not -nu7-rt- s2-5ifi5 off-n5- rt1-r it is t1-

ntur- of >5t51?ll> 2-nl 2ro/ision+ 91i51 i72os-s

2unis17-nt for n4 5ontr/-ntion of t1- SEI A5t+

Rul-s or R-gult ions n0 0o-s not 2r-5is-l4 0-f in-

or s2-5i f4 n4 o ff -n5- in 2rti 5u lr. In5lusion of

S-5tion $; s s-2rt- off-n5- 9oul0 3- /ioltion

of t1- 3si5 2rin5i2l- of 5ri7inl 6uris2ru0-n5- t1t

:5r i7inl l9 1s to 3- 5 l-r n0 un73iguous.: I t



16

1s 3--n 1-l0 34 t1is Court in nu7-rous 6u0g7-nts

t1t 5r i7inl l 9 oug1t to 3- 3solut-l4 5l-r +

s2-5ifi5 n0 not /gu-+ fil ing 91i51 it 9oul0 suff-r

fro7 r3 it r ri n- ss . K R- f ( i ) S ta te o f M ad hy a

P radesh v . Ba ldeo P rasad , ( 1961 ) # S C R = ! "

( i i ) Har ak ha !d "at a! ha !d Ba!thia # $rs. v.

U!io! of %!dia # $rs., (#==) $ SCC # n0 ( ii i)

A.K. "oy # $rs. v. U!io! of %!dia # $rs., (#=8$)

SCR $!$.

22. I t 9s lt-rnti/- l4 su37itt-0 34 t1- l-rn-0

s-n io r 5ouns-l 22-r ing for t1- 22-l ln t t1t

ssu7ing i f S-5tion $; s i72l i5 itor is t r-t-0 s

s51-0ul-0 o ff -n5- + i t 9s int ro0u5-0 / i0- PMLA

(A7-n07-nt) A5t + $"#$+ 9 .- .f . #%."$ .$"#< i .- .

7u51 ft-r t1- off-n5-s 9-r- l l-g-0 to 1/- 3--n

5o77itt-0 n0 3r ginst -@?2ost f5to l9s un0-r

Arti5l- $"(#) 9oul0 3- ttr5t-0. S-5tion $(u) of PMLA

0-fin-s >2ro5--0s of 5ri7-> n0 stt-s t1t it 7ust 3-

s r-sult of 5ri7inl 5ti/it4 r-lting to

s51-0ul-0 off-n5-. Un0-r S-5tion < of t1- PMLA+ in



17

or0-r for t1- off-n5- of 7on-4 lun0-ring to 3-

tr igg-r-0+ i t 7ust 3- -st3l is1-0 t t1- t1r-s1ol0

t1 t t1- >2ro5--0s of 5ri7-> 9s s r-sult of

5ri7inl 5ti/it4 r-lting to s51 -0u l-0 off -n5 - on

t1- 0t- su 51 5r i7- 9s 5 o77itt-0. H- su37itt-0

t1t t1- off-n5-s r- l l-g-0 to 1/- 3--n

5o77itt-0 3-t9--n t1- 4-rs $""# n0 $""!. T1-

of f-n5- un0-r S-5t ion #$A r9 S-5tion $; of SEI

A5t 3-57- s51-0ul-0 o ff-n5- onl4 34 94 o f t1-

Pr-/-ntion of Mon-4 Lun0-ring (A7-n07-nt) A5t+

$""= 9.-.f. "#.".$""=+ 7u51 ft-r t1- ll-g-0

5o77ission of 5ri7- n0 t1- 22-llnt is 07itt-0l4

not 55us-0 of /ioltion of S-5tion #$A r9 S-5tion $;

of t1- SEI A5t.

2%. Mr. Rn6i t 'u7r+ l -rn-0 Sol i5 itor &-n-rl

22-ring on 3-1lf of t1- r-s2on0-nt+ on t1- ot1-r

1n0+ su37itt-0 t1t Ros- *l l-4 &rou2 of

Co72ni-s f lot-0 s 7n4 s $! 5o72ni-s

lt1oug1 t9o out of t1-7+ i.-. Ros- *ll-4 R-l Estt-

Constru5tion Lt0. (>Ros- *ll-4>) n0 Ros- *ll-4 Hot-ls



18

Ent-rtin7-nt Lt0. 9-r- t1- front runn-rs to llur-

t1- in/-stors to in/-st in (i) As1ir30 S51-7-+

( i i )Ti7- S1r- S51-7-+ n0 ( i i i ) D-3-ntur- S51-7-+

2ro7ising 1ig1 r-turns to t1- in/-stors n0 t1- fun0s

so 5oll-5t-0 fro7 t1- 2u3li5 t lrg- 9-r-

su3s-u-ntl4 lun0-r-0 in sso5it-0 5o72ni-s. Ros-

*ll-4 70- 2u3li5 issu- of 0-3-ntur-s 9it1out

f i l ing n4 o f f - r 0o5u7-nt in / i o l t i on o f S-5 t i on

% o f t1- Co72ni-s A5t+ #=%+ nor 0i0 it fil-

stt-7-nt in li-u of 2ros2-5tus s 5l i7 -0 34 it . On

t1- 3s is o f t1- in for7t ion0o5u7-nts r-5- i/-0

fro7 SEI+ t1- r-s2on0-nt f i l-0 5o72lint in t1-

Court of C1i-f M-tro2olitn Mgistrt- t Cl5utt for

S51-0ul-0 Off-n5- un0-r S-5tion $; of t1- SEI A5t.

T1- r-s2on0-nt 5on0u5t-0 s-r51-s of t1- 2r-7is-s

of t1- Ros- *ll-4 &rou2 on $$."%.$"#; n0

$<."%.$"#;+ r-sulting into s-iur- of in5ri7inting

0o5u7-nts n0 In0in 5urr-n54 of Rs.<!."! l5s. T1-

r-s2on0-nt:s 5tion of s-r51 n0 s-iur- 9s

51ll-ng-0 34 t1- 22-llnt 34 filing 9rit 2-tition



19

3-for- t1- Hig1 Court of Cl5utt 91i51 9s 0is7iss-0

on !.!.$"#;.

2&. H- furt1-r su37itt-0 t1t t1- in/-stigtion

5on0u5t-0 34 t1- r-s2on0-nt r-/- l-0 t1t Ros-

*l l-4 i ll -gl l4 n0 f ru0ul-ntl4 5oll-5t-0 2u3li5

7on-4 fro7 t1- g-n-rl 2u3li5 in t1- Stt- of G-st

-ngl + Ass7+ Tri2ur n0 O0is1+ 7ounting to

Rs.#$<<.< 5ror-s (22ro@) . In 00i t ion to t1is +

Ros- *l l-4 i ll -gl l4 n0 fru0ul-ntl4 5oll-5t-0

2u3li5 fun0s fro7 t1- Stt-s of 'rntB+ i1r+

M1rs1tr+ J1rB1n0+ Uttr Pr0-s1+ D-l1i +

M014 Pr0-s1+ 7ounting to 7or- t1n

Rs.<# $".=! 5ror-s (22ro @). T1-r-for-+ t1- fun0s of

Rs.#$.8$ 5ror-s 5ol l-5t-0 fro7 t1- g-n-rl 2u3li5

un0-r t1- gr3 of D-3-ntur- S51-7-s is ti2 of t1-

i5-3-rg.

25. Mr. Rn6it 'u7r+ l-rn-0 Soli5itor &-n-rl

furt1-r su37itt-0 t1t t1- >s51-0ul-0 off-n5-s> n0

>off-n5- of 7on-4 lun0-ring> r- 7utull4 -@5lusi/-



20

n0 in0-2-n0-nt of -51 ot1-r. S-5tion < of t1- PMLA

0-ls 9it1 t1- off-n5- of 7on-4 lun0-ring

2unis13l- un0-r S-5tion ; of t1- si0 A5t+ 91-r-s

t1- :S51-0ul- : to PMLA in/ol/ing off-n5-s un0-r $8

2rgr21s -n3l- t1- r-s2on0-nt to 5on0u5t t1-

in/-stigtion for t1- 5oll-5tion of -/i0-n5- r-lting to

off-n5- of 7on-4 lun0-ring. In t1- 2r-s-nt 5s-+ t1-

r-s2on0-nt f i l-0 t1- 5o72lint un0-r S-5tion ;% of

PMLA n0 5ognin5- o f t1- s7- 1s 3--n tB-n

34 t1- S2-5 i l Court on "$.";.$"#% un0-r S-5t ion

;;(#) (3 ) o f PMLA. H- fur t1-r su37itt-0 t1t t1-

5o72lint f i l-0 34 SEI 1s not1ing to 0o 9it1 t1-

7-rits of t1- 2 r-s -n t 5 s - n0 t1- Hi g1 Court

st4-0 t1- 2ro5--0ings of t1- SEI 5o72lint on t1-

groun0 t1t t1- CMM 10 no ut1orit4 to tB-

5ognin5- of t1- off-n5- s t1- lt-st 7-n07-nt in

S-5tion $ of SEI A5t 7B-s t1- off-n5- tri3l- 34

t1- Court of S-ssions.

26. T1- l-rn-0 Sol i5 itor &-n-rl su37itt-0 t1t

S-5tion ;% of PMLA r-f-rs onl4 to t1- t-r7 :S2-5il



21

Cour t: n0 t1-r-for- 1s to 3- gi/-n r-stri5t-0

7-ning. A55or0ing to 1i7+ PMLA is . :S2-5il L9:

22li53l- to t1- su36-5t of 7on-4 lun0-ring+ n0

0-ls 9it1 -5ono7i5 off-n0-rs n0 91it- 5ollr

5ri7inls. T1- o36-5t of PMLA is to 2r-/-nt

7on-4?lun0-ring n0 to 2ro/i0- for 5onfis5tion of

2ro2-rt4 0-ri/-0 fro7+ or in/ol/-0 in+

7on-4?lun0-ring. To -n3l- t1- s51-7- of t1- A5t+

r-lin5- 9s 2l5-0 on /rious 2ro/isions of t1- PMLA.

H- furt1-r su37itt-0 t1t S-5tion ;; of t1- PMLA onl4

5onf-rs 6ur is0i5 tion on t1- S2-5i l Court to 0-l

9it1 off-n5-s un0-r t1- PMLA. S-5tion ;% of PMLA

7B-s t1- off-n5- of 7on-4 lun0-ring 5ogni3l-

n0 non?3il3l- n0 lso 2ro/i0-s t1t

not9it1stn0ing t1- 2ro/isions of Cri7inl Pro5-0ur-

Co0-+ #=!<+ n o 2 -r so n 55 us -0 o f n o f f -n 5-

2 u n i s1 3 l - f o r t - r 7 o f i 72 r is on 7- nt o f 7 o r -

t 1 n t 1r -- 4 - rs u n0 -r P r t A o f t 1- S51-0ul-

s1ll 3- r-l-s-0 on 3il or on 1is o9n 3on0+ unl-ss



22

t1- Pu3li5 Pros-5utor 1s 3--n gi/-n n o22or tunit4

to o22os- t1- 22li5tion for su51 r-l-s-.

27. T1- l-rn-0 Soli5itor &-n-rl lstl4 su37itt-0

t1t :7on-4 lun0-ring: 3-ing n -5ono7i5 off-n5-

2os-s s-rious t1r-t to t1- Ntionl E5ono74 n0

Ntionl Int-r-st n0 5o77itt-0 9it1 5ool 5l5ultion

n0 0-li3-rt- 0-sign 9it1 t1- 7oti/- of 2-rsonl gin

r-gr0l-ss of t1- 5ons-u-n5-s to t1- so5i-t4. H-n5-+

for Mon-4 Lun0-r-rs : 6il is t1- rul- n0 3il is n

-@5-2tion+ 91i51 fin0s su22ort fro7 7n4 ln07rB

6u0g7-nts of t1is Court.

2'. -for- 0-ling 9it1 t1- 22li5tion for 3il on

7-rit+ it is to 3- 5onsi0-r-0 91-t1-r t1- 2ro/isions of

S-5tion ;% of t1- PMLA r- 3 in0ing on t1- H ig1

Court 91i l- 5onsi0-ring t1- 22 li 5 tion for 3il

un0-r S-5tion ;<= of t1- Co0- of Cri7inl Pro5-0ur-.

T1-r- is no 0ou3t t1t PMLA 0-ls 9it1 t1- off-n5-

of 7on-4 lun0-ring n0 t1- Prli7-nt 1s -n5t-0

t1is l9 s 2-r 5o77it7-nt of t1- 5ountr4 to t1-



23

Unit-0 Ntions &-n-rl Ass-73l4. PMLA is . s2-5il

s t t u t- - n 5t - 0 3 4 t 1- P rl i 7- n t f o r 0 - l in g

9i t1 7on-4 lun0-r ing. S-5 tion % o f t1- Co0- o f

Cri7in l Pro5-0ur- + #=!< 5 l-r l4 l4s 0o9n t1t

t1- 2ro/ isions o f t1- Co0- o f Cr i7in l Pro5-0ur-

9ill not ff-5t n4 s2-5il sttut- or n4 lo5l l9. In

ot1-r 9or0s+ t1- 2ro/isions of n4 s2-5il sttut- 9ill

2r-/il o/-r t1- g-n-rl 2ro/is ions of t1- Co0- of

Cri7inl Pro5-0ur- in 5s- of n4 5onfli5t.

2(. S -5 ti on ;% o f t1- PMLA s tr ts 9 i t1 non

o3stnt- 5lus- 91i51 in0i5t-s t1t t1- 2ro/isions

li0 0o9n in S-5tion ;% of t1- PMLA 9ill 1/-

o/-rri0ing -ff-5t on t1- g-n-rl 2ro/isions of t1- Co0-

of Cr i7inl Pro5-0ur- in 5s- o f 5onf l i5 t 3-t9--n

t1-7. S-5tion ;% of t1- PMLA i72os-s follo9ing t9o

5on0itions for grnt of 3il to n4 2-rson 55us-0 of n

off-n5- 2unis13l- for t-r7 of i72ris on7-nt o f

7or- t1n t1r-- 4-rs un0-r Prt ?A o f t1-

S51-0ul- of t1- PMLA (i ) T1t t1- 2ros-5utor 7ust

3- g i/-n n o22ortunit4 to o22os- t1- 22l i5tion



24

for 3i l n0 ( i i) T1t t1- Court 7ust 3- st is f i-0

t 1 t t 1- r- r- r - so n 3l - g ro un 0s f or 3-li-/ing

t1t t1- 55us-0 2-rson is not guilt4 of su51 off-n5-

n0 t1t 1- is not liB-l4 to 5o77it n4 off-n5- 91il-

on 3il.

%0. T1- 5on0itions s2-5ifi-0 un0-r S-5tion ;% of t1-

PMLA r- 7 n0 to r 4 n0 n - -0 s t o 3 - 5 o7 2 li - 0

9i t1 91 i51 i s fur t1- r str-ngt1-n-0 34 t1-

2ro/isions of S-5tion % n0 lso S-5tion !# of t1-

PMLA. S-5t ion % r-uir-s t1t t1- 2ro/is ions of

Cr.P.C. s1ll 22l4 in so fr s t1-4 r- not

in5ons ist-nt 9it1 t1- 2ro/isions o f t1is A5t n0

S-5tion !# 2ro/i0-s t1t t1- 2ro/isions of t1- PMLA

s1ll 1/- o/-rri0ing -ff-5t not9it1stn0ing n4t1ing

in5onsist-nt t1-r-9it1 5ontin-0 in n4 ot1-r l9 for

t1- ti7- 3-ing in for5-. PMLA 1s n o/-rri0ing -ff-5t

n0 t1- 2ro/isions of Cr.P.C. 9oul0 22l4 onl4 if t1-4

r- not in5onsist-nt 9it1 t1- 2ro/isions of t1is A5t.

T1-r-for-+ t1- 5on0itions -nu7-rt-0 in S-5tion ;% of

PMLA 9ill 1/- to 3- 5o72li-0 9it1 -/-n in r-s2-5t of



25

n 22li5tion for 3i l 70- un0-r S-5t ion ;<= of

Cr.P.C. T1t 5ou2l-0 9it1 t1- 2ro/isions of S-5tion

$; 2ro/i0-s t1t unl-ss t 1- 5ontr r4 is 2ro/-0+ t1-

Aut1orit4 or t1- Court s1ll 2r-su7- t1t 2ro5--0s of

5ri7- r- in/ol/-0 in 7on-4 lun0-r ing n0 t1-

3ur0-n to 2ro/- t1t t1- 2ro5--0s of 5ri7- r- not

in/ol/-0+ li-s on t1- 22-llnt.

1 %1. I t 9s su37itt-0 on 3-1lf of t1- 22-llnt

t1t S-5tion #$A r-0 9it1 S-5tion $; of t1- SEI

A5t 0o-s not in5lu0- S-5tion $; of t1- si0 A5 t s

s 51-0ul -0 o ff -n5- 3ut i t i s onl 4 S-5t ion #$A

91i51 is to 3- 5onstru-0 s s51-0ul-0 off-n5- s

t1- 0-s5ri2tion of of f-n5- ginst S-5t ion $; of

t1- SEI A5t 7-ntion-0 un0-r 2rgr21 ## of t1-

S51-0ul- to PMLA is 2rt of S-5tion #$A of t1- si0

A5t. In t1is 5ont-@t it 9s su37itt-0 34 t1- l-rn-0

Soli5itor & -n -r l t 1 t P ML A 3 -i ng S 2- 5i l

Sttut- 5nnot 3- gi/-n r-stri5t-0 7-ning 91il-

int-r2r-ting its 2ro/isions in5lu0ing t1- S51-0ul-

91i51 is n int-grl 2rt of t1is A5t. PMLA 1s



26

3--n -n5t-0 34 t1- Prli7-nt s 2-r 5o77it7-nt

of t1- 5ountr4 to t1- Unit-0 Ntions n0 1/ing

g lo3 l 0 i7-nsi ons n0 5nno t 3- 5 on fin-0 t o

ntionl 3oun0r i-s o f our 5ountr4 . Mor-o/-r +

its l-gislti/- int-nt 1s to 3- gt1-r-0 fro7 t1-

2lin r-0ing of t1- lngug- us-0 in t1-

2ro/isions of t1- A5t n0 t1- S51-0ul- 22-n0-0

t1-r-un0-r. H-n5-+ t1-r- is no 73iguit4 t1t

S-5tion $; of t1- SEI A5t is s51-0ul-0 off-n5-

un0-r Prgr21 ## of t1- S51-0ul-. T1- f5 t

r-7ins t1t S-5tion $; of t1- SEI A5t is

in5lusi/- in ntur- n0 lso in5lu0-s S-5tion #$A

9it1in its 73it n0 s5o2-. Furt1-r+ on 2-rusl of

/rious off-n5-s list-0 in t1- S51-0ul - i n $8

P rg r21s + i t 5 ou l0 3- s - -n t1 t on l 4 2-n l

2ro/isions of t1- Sttut-s 1/- 3--n in5or2ort-0

in t1- S51-0ul-. T1-r- is no 0-n4ing t1- f5t t1t

S-5tion $; of t1- SEI A5t is 2-nl 2ro/ision of

in5lusi/- ntur- n0 t1us it 5l-rl4 r-f l-5ts t1-

l-gislti/- int-nt of s51-0ul-0 off-n5- un0-r PMLA.



27

A07it t-0l 4+ t1- 5 o72lint 9s f il -0 34 SEI

ginst t1- 22-llnt on t1- ll-gtion of

5o77itting off-n5- 2unis13l- un0-r S-5tion ; of

PMLA. T1- 5o72lint r-/-ls t1t SEI r-5-i/-0

l-tt-r fro7 t1- Ministr4 of Cor2ort- Affirs+ Offi5-

of t1- R-gistrr of Co72ni-s (>ROC>)+ G-st -ngl+

9it1 r-f-r-n5- to Ros- *l l-4 in 91i51 t1- ROC

1 0 s t t- 0 t1 t R os - * l l-4 1 s r -2 - t- 0l 4

issu-0 0-3-ntur-s in t1- 4-rs $""#?$""$+

$"";?$""%+ $""%?$"" n0 $""!?$""8 to 7or-

t1n ;= 2-rsons in -51 f inn5il 4-r 9it1out

fil ing off-r 0o5u7-nts 9it1 -it1-r t1- ROC or t1-

SEI n0 r - u - s t - 0 S E I t o i n / - s t i g t - i n t o

t1 - 7 t t - r . F r o7 t1 - infor7tion 2ro/i0-0 34

ROC+ it 9s o3s-r/-0 t1t Ros- *ll-4 10 ris-0

totl su7 of Rs.#$8$.$$% lB1s fro7 $%8%

2-rsons 34 i s su ing s - 5ur-0 0-3-n tur - s t o t1-

g - n- r l 2 u 3l i 5 9 i t1 o ut 5o72l4ing 9it1 t1-

nor7s r-lt-0 to IPO o f s-5urit i-s s 2-r f irst

2ro/ision to S-5tion !(<) of t1- Co72ni-s A5t+



28

#=%. Ros- *ll-4 34 7B ing 2u3 li5 issu- of

0-3-ntur-s 0uring t1- 2-rio0 3-t9--n $""#?$""$

to $""!?$""8+ 9it1out 5o72l4ing 9it1 t1- 2u3li5

issu- nor7s+ /iolt-0 t1- 2ro/isions of -rst91il-

SEI (Dis5losur- n0 In/-stor Prot-5tion)

&ui0-lin-s+ $""" n0 t1- 2ro/isions of S-5tion

##!(A) of t1- Co72ni-s A5t+ #=% n0 ot1-r

2ro/isions of SEI A5t 91i51 is S51-0ul-0 Off-n5-

un0-r PMLA.

%2. G- 1/- 1-r0 t1- l-rn-0 5ouns-l for t1- 2rti-s.

At t1is stg- 9- r-frin-0 ours-l/-s fro7 0-5i0ing t1-

u-stions tri-0 to 3- ris-0 t t1is stg- sin5- it is

not1ing 3ut 3il 22li5tion. G- 5nnot forg-t t1t

t1is 5s- is r-lting to Mon-4 Lun0-ring 91i51 9-

f--l is s-rious t1r-t to t1- ntionl -5ono74 n0

ntionl int-r-st. G- 5nnot 3rus1 si0- t1- f5t t1t

t1- s51-7-s 1/- 3--n 2r-2r-0 in 5l5ulti/-

7nn-r 9it1 0-li3-rt i/- 0-sign n0 7oti/- of

2-rsonl gin+ r-gr0l-ss of t1- 5ons-u-n5- to t1-

7-73-rs of t1- so5i-t4.



29

%%. Git1 r-gr0 to t1- u-stions ris-0 34 Mr. &o2l

Su3r7niu7+ l-rn-0 s-nior 5ouns-l 22-ring on

3-1lf of t1- 22-llnt+ t t1is stg-+ 9- 0o not t1inB

t1t 9- s1oul0 ns9-r or 0-l 9it1 t1- s7- in /i-9 of

t1- f5t t1t t1- 7tt-r is 2-n0ing 3-for- Di/ision

-n51 of t1- Hig1 Court in 9rit 6uris0i5tion+ s 1s

3--n 2oint-0 out 3-for- us. H-n5-+ n4 o3s-r/tion or

r-7rBs 70- 34 us 74 5us- 2r-6u0i5- to t1- 5s-

of 3ot1 t1- si0-s. T1-r-for-+ 9- f--l t1t it 9oul0 3-

2ro2-r for us onl4 to 0-l 9it1 t1- 7tt-r 5on5-rning

3il. G- not- t1t 07itt-0l4 t1- 5o72lint is fi l-0

ginst t1- 22-llnt on t1- ll-gtions of 5o77itting

t1- off-n5- 2unis13l- un0-r S-5tion ; of t1- PMLA.

T1- 5ont-ntion ris-0 on 3-1lf of t1- 22-llnt t1t

no off-n5- un0-r S-5tion $; of t1- SEI A5t is 70-

out ginst t1- 22-llnt+ 91i51 is s51-0ul-0 off-n5-

un0-r t1- PMLA+ n--0s to 3- 5onsi0-r-0 fro7 t1-

7t-rils 5ol l-5t-0 0uring t1- in/-stigtion 34 t1-

r-s2on0-nts. T1-r- is no or0-r s 4-t 2ss-0 34

5o72-t-nt 5ourt of l9+ 1ol0ing t1t no off-n5- is



30

70- out ginst t1- 22-llnt un0-r S-5tion $; of t1-

SEI A5t n0 it 9oul0 3- not-9ort14 t1t 5ri7inl

r-/ision 2r4ing for us1ing t1- 2ro5--0ings initit-0

ginst t1- 22-llnt un0-r S-5tion $; of SEI A5t is

stil l 2-n0ing for 1-ring 3-for- t1- Hig1 Court. G-

1/- not-0 t1t S-5t ion ;% of t1- PMLA 9i ll 1/-

o/-rri0ing -ff-5t on t1- g-n-rl 2ro/isions of t1- Co0-

of Cr i7inl Pro5-0ur- in 5s- o f 5onf l i5 t 3-t9--n

t1-7. As 7-ntion-0 -rl i-r+ S-5tion ;% of t1- PMLA

i72os-s t9o 5on0itions for grnt of 3il+ s2-5ifi-0 un0-r

t1- si0 A5t. G- 1/- not 7iss-0 t1- 2ro/iso to S-5tion

;% of t1- si0 A5t 91i51 in0i5t-s t1t t1- l-gisltur-

1s 5r/-0 out n -@5-2tion for grnt of 3il 34

S2-5il Court 91-n n4 2-rson is un0-r t1- g- of #

4-rs or is 9o7n or is si5B or infir7. T1-r-for-+

t1-r- is no 0ou3t t1t t1- 5on0itions li0 0o9n un0-r

S-5tion ;%A of t1- PMLA+ 9oul0 3in0 t1- Hig1 Court s

t1- 2ro/isions of s2-5il l9 1/ing o/-rri0ing -ff-5t on

t1- 2ro/isions of S-5tion ;<= of t1- Co0- of Cri7inl

Pro5-0ur- for grnt of 3il to n4 2-rson 55us-0 of



31

5o77itting off-n5- 2unis13l- un0-r S-5tion ; of t1-

PMLA+ -/-n 91-n t1- 22li5tion for 3il is 5onsi0-r-0

un0-r S-5tion ;<= of t1- Co0- of Cri7inl Pro5-0ur-.

%&. G- 1/- furt1-r not-0 t1- 0ir-5tions gi/-n 34 t1is Court

in S&'rata hattora v. U!io! of %!dia a!d $rs.+ ($"#;) 8

SCC !8+ in 2rti5ulr to 2rgr21 <%.;.

%5. G- 5nnot 3rus1 si0- t1- f5t t1t t1- 22-llnt flot-0

s 7n4 s $! 5o72ni-s to llur- t1- in/-stors to in/-st in

t1-ir 0iff-r-nt 5o72ni-s on 2ro7is- of 1ig1 r-turns n0

fun0s 9-r- 5oll-5t-0 fro7 t1- 2u3li5 t lrg- 91i51 9-r-

su3s-u-ntl4 lun0-r-0 in sso5it-0 5o72ni-s of Ros-

*ll-4 &rou2 n0 9-r- us-0 for 2ur51sing 7o/-3l- n0

i77o/-3l- 2ro2-rti-s.

%6. G- 0o not int-n0 to furt1-r stt- t1- ot1-r f5ts -@5-2ting

t1- f5t t1t 07itt-0l4 t1- 5o72lint 9s fil-0 ginst t1-

22-llnt on t1- ll-gtion of 5o77itting off-n5- 2unis13l-

un0-r S-5tion ; of t1- PMLA. T1- 5ont-ntion 70- on 3-1lf

of t1- 22-llnt t1t no off-n5- un0-r S-5tion $; of t1- SEI

A5t is 70- out ginst t1- 22-llnt+ 91i51 is s51-0ul-0



32

off-n5- un0-r t1- PMLA+ n--0s to 3- 5onsi0-r-0 fro7 t1-

7t-ril 5oll-5t-0 0uring t1- in/-stigtion n0 furt1-r to 3-

5onsi0-r-0 34 t1- 5o72-t-nt 5ourt of l9. G- 0o not int-n0 to

-@2r-ss ours-l/-s t t1is stg- 9it1 r-gr0 to t1- s7- s it

74 5us- 2r-6u0i5- t1- 5s- of t1- 2rti-s in ot1-r

2ro5--0ings. G- r- sur- t1t it is not -@2-5t-0 t t1is stg-

t1t t1- guilt of t1- 55us-0 1s to 3- -st3lis1-0 3-4on0

r-son3l- 0ou3t t1roug1 -/i0-n5-s. G- 1/- not-0 t1t in

*.S. +aa! Moha! "eddy v. e!tral B&rea& of

%!vestiatio! + ($"#<) ! SCC ;<=+ t1is Court 1s o3s-r/-0

t1t t1- -5ono7i5 off-n5-s 1/ing 0--2 root-0 5ons2ir5i-s

n0 in/ol/ing 1ug- loss of 2u3li5 fun0s n--0 to 3- /i-9-0

s-riousl4 n0 5onsi0-r-0 s gr/- off-n5-s ff-5ting t1-

-5ono74 of t1- 5ountr4 s 91ol- n0 t1-r-34 2osing s-rious

t1r-t to t1- finn5il 1-lt1 of 5ountr4. In Uni!n ! India 8.

=a""an Ai <han$ ($"##) #" SCC $<%+ t1is Court 1s li0

0o9n t1t 91t 9ill 3- t1- 3ur0-n of 2roof 91-n tt-72t is

70- to 2ro6-5t t1- 2ro5--0s of 5ri7- s untint-0 7on-4. It

is 1-l0 in t1- si0 2rgr21 t1t ll-gtions 74 not

ulti7t-l4 3- -st3lis1-0+ 3ut 1/ing 3--n 70-+ t1- 3ur0-n

http://indiankanoon.org/doc/3764/






33

of 2roof t1t t1- 7oni-s 9-r- not t1- 2ro5--0s of 5ri7- n0

9-r- not+ t1-r-for-+ tint-0 s1ift-0 on t1- 55us-0 2-rsons

un0-r S-5tion $; of t1- PML A5t+ $""$. T1- s7- 2ro2osition

of l9 is r-it-rt-0 n0 follo9-0 34 t1- Oriss Hig1 Court in

t1- unr-2ort-0 0-5ision of ,/. Jana/a Jha 8. A""i"/an/

Di#-/!$ Di#-/!a/# ! En!-##n/ (CRLMC No. ##; of

$"## 0-5i0-0 on D-5-73-r #+ $"#<). T1-r-for-+ tBing into

55ount ll t1-s- 2ro2ositions of l9+ 9- f--l t1t t1-

22li5tion for 3il of t1- 22-llnt s1oul0 3- s--n t t1is

stg- 91il- t1- 22-llnt is in/ol/-0 in t1- -5ono7i5 off-n5-+

in g-n-rl+ n0 for t1- off-n5- 2unis13l- un0-r S-5tion ; of

t1- PMLA+ in 2rti5ulr.

%7. G- 1/- furt1-r not-0 t1t t1- Hig1 Court t t1- ti7- of

r-fusing t1- 3il 22li5tion+ 0ul4 5onsi0-r-0 t1is f5t n0

furt1-r 5onsi0-r-0 t1- stt-7-nt of t1- Assistnt &-n-rl

Mng-r of RI+ 'olBt+ s-iur- list+ stt-7-nts of 0ir-5tors

of Ros- *ll-4+ stt-7-nts of offi5-r 3-r-rs of Ros- *ll-4+

stt-7-nts of 0-3-ntur- trust--s of Ros- *ll-4+ stt-7-nts of

0-3-ntur- 1ol0-rs of Ros- *ll-4+ stt-7-nts of A&M of

A55ounts of Ros- *ll-4 n0 stt-7-nts of R-gionl Mng-rs



34

of Ros- *ll-4 for for7tion of o2inion 91-t1-r t1- 22-llnt is

in/ol/-0 in t1- off-n5- of 7on-4 lun0-ring n0 on

5onsi0-rtion of t1- si0 stt-7-nts n0 ot1-r 7t-rils

5oll-5t-0 0uring t1- in/-stigtion+ t1- Hig1 Court s2-5ifi5ll4

stt-0 s follo9s

4 7Bing 2rg7ti5 22ro51 to t1- 2ro/isionof S-5tion ;%(#) of t1- P.M.L. A5t n0 on5onsi0-rtion of t1- nt-5-0-nts of t1- 2-tition-r in

5oll-5tion of 7on-4 fro7 o2-n 7rB-t for issuings-5ur-0 0-3-ntur-s in /ioltion of t1- gui0-lin-s of SEI n0 on furt1-r 5onsi0-rtion of t1- 7nn-r of B--2ing 55ounts of Ros- *ll-4+ I 7 un3l- to1ol0 t1t t1- 2-tition-r is not liB-l4 to 5o77it n4 off-n5- 91il- on 3il. As r-sult+ I 5nnot 2-rsu0-74s-lf to grnt 3il to t1- 2-tition-r t t1is stg-.So+ 2r4-r for 3il is r-6-5t-0. T1- 22li5tion is0is7iss-0.

%'. In t1-s- 5ir5u7stn5-s+ 9- 0o not fin0 t1t t1- Hig1

Court 1s -@-r5is-0 its 0is5r-tion 52ri5iousl4 or r3itrril4 in

t1- f5ts n0 5ir5u7stn5-s of t1is 5s-. G- furt1-r not- t1t

t1- Hig1 Court 1s 5ll-0 for ll t1- r-l-/nt 22-rs n0 0ul4

tB-n not- of t1t n0 t1-r-ft-r ft-r stisf4ing its

5ons5i-n5-+ r-fus-0 t1- 3il. T1-r-for-+ 9- 0o not fin0 t1t t1-

Hig1 Court 1s 5o77itt-0 n4 9rong in r-fusing 3il in t1-

gi/-n 5ir5u7stn5-s. A55or0ingl4+ 9- 0o not fin0 n4 r-son to


http://slidepdf.com/reader/full/sc-on-money-launderingpdf 35/35

35

int-rf-r- 9it1 t1- i72ugn-0 or0-r so 2ss-0 34 t1- Hig1 Court

n0 t1- 3il+ s 2r4-0 3-for- us+ 51ll-nging t1- si0 or0-r is

r-fus-0. Cons-u-ntl4 t1- 22-l is 0is7iss-0.

J(Pinaki Chanda Gh!"#)

J(R.<. A)a>a)

N#> D#hi?D#-## 16$ 2015.

Documents

SC on Money Laundering.pdf