Delhi High Court - Orders
Atul Chordia vs Enforcement Directorate & Anr on 2 March, 2022
Author: Siddharth Mridul
Bench: Siddharth Mridul, Anoop Kumar Mendiratta
$~5 & 6
* IN THE HIGH COURT OF DELHI AT NEW DELHI
5
+ W.P.(CRL) 440/2022, CRL.M.A. 3811-13/2022
ATUL CHORDIA ..... Petitioner
Through : Mr. Mahesh Jethmalani, Senior
Advocate along with Mr. Dheeraj
Nair, Mr.Hitesh Jain, Ms. Vishrutyi
Sahni and Ms.Siya Chaudhary,
Advocates.
versus
ENFORCEMENT DIRECTORATE & ANR. ..... Respondents
Through : Mr. Amit Mahajan, CGSC for UOI
along with Mr.Zoheb Hossain,
Special Counsel and Mr.Vivek
Gurnani, Mr.Imon Bhattarcharya,
Advocates.
6
+ W.P.(CRL) 443/2022, CRL.M.A.3845-47/2022
INDIABULLS HOUSING FINANCE LTD & ORS. ..... Petitioners
Through : Mr. Rajiv Nayar, Senior Advocate
along with Mr. Rishi Agarwala,
Mr.Karan Luthra and Mr.Ankit
Banati, Advocates.
versus
UNION OF INDIA & ANR. ..... Respondents
Through : Mr. Amit Mahajan, CGSC for UOI
along with Mr.Zoheb Hossain,
Special Counsel and Mr.Vivek
Gurnani, Mr.Imon Bhattarcharya,
Advocates.
W.P.(CRL.) Nos. 440/2022 & 443/2022 Page 1 of 5
CORAM:
HON'BLE MR. JUSTICE SIDDHARTH MRIDUL
HON'BLE MR. JUSTICE ANOOP KUMAR MENDIRATTA
ORDER
% 02.03.2022 CRL.M.A. Nos. 3812/2022 & 3813/2022 in W.P.(CRL.) 440/2022 CRL.M.A. Nos. 3846/2022 & 3847/2022 in W.P.(CRL.) 443/2022 Exemptions allowed, subject to all just exceptions. The applications stand disposed of.
W.P.(CRL.) 440/2022 & CRL. M.A. 3811/2022 (Interim Stay) W.P.(CRL.) 443/2022 & CRL. M.A. 3845/2022 (Interim Stay) Issue notice.
Mr. Amit Mahajan, learned Central Government Standing Counsel accepts notice on behalf of respondents and prays for time to file reply.
It is the petitioners' case that they are similarly situated as the petitioners in W.P.(Crl.) No. 408/2022 titled „Harish Fabiani & Ors. vs. Enforcement Directorate & Ors.‟ wherein this court was pleased to pass the following order on 21.02.2022.
"By way of the present petition, the petitioners have preferred two principal challenges.
One, they challenge the constitutional vires of sections 50(2) to (4) of the Prevention of Money Laundering Act, 2002 on the ground that the said provisions are violative of Articles 14, 20(3) and 21 of the Constitution of India.
Two, the petitioners seek quashing of ECIR No. 07/HIU/2021 registered against them; and the issuance of Look-Out Circular (LOC) and other consequential actions initiated against them arising from the said ECIR. Mr. Rajiv Nayar, learned senior counsel appearing on behalf of the petitioners, draws our attention to order dated 27.04.2021 made by a W.P.(CRL.) Nos. 440/2022 & 443/2022 Page 2 of 5 Coordinate Bench of the Hon'ble Bombay High Court, whereby the Hon'ble Bombay High Court has been pleased to grant stay of further investigation of FIR No. 129/2021 dated 13.04.2021 registered at P.S.: Wada, Thane, Maharashtra within their jurisdiction. The relevant portion of the aforesaid order dated 27.04.2021 in Crl. WP No. 1805/2021 reads as under :
"20] In the meanwhile, there shall be Ad-interim relief in terms of prayer clause (b), which reads thus:
"b. Pending the hearing and final disposal of the present Petition, this Hon'ble Court be pleased to grant interim stay of the further investigation of FIR No. 0129 of 2021 dated 13.04.2021 in P.S. Wada".
21] It is needless to observe that since we have stayed the investigation, the question of taking any further action on the basis of said FIR would not arise."
Mr. Nayar submits that the ECIR under challenge in the present proceedings is predicated on the same scheduled offence that is subject matter of the aforesaid FIR No. 129/2021.
Mr. Amit Mahajan, learned CGSC, who appears on behalf of the respondents on advance notice, submits that a challenge to the vires inter-alia of section 50 of the PMLA is already pending before the Hon‟ble Supreme Court and also before this court in other proceedings. He further submits that the impugned ECIR was recorded subsequent to the registration of the FIR and the claim of identity of transactions as between the FIR and the ECIR, is misconceived.
Issue notice, at this stage limited only to the prayers seeking quashing of ECIR No. 07/HIU/2021 and consequential actions. Mr. Amit Mahajan, learned CGSC accepts notice on behalf of the respondents; and seeks time to file counter affidavit.
Let counter affidavit be filed within 02 weeks, with advance copy to counsel for the petitioner; who may filed rejoinder thereto, if any, within 01 week W.P.(CRL.) Nos. 440/2022 & 443/2022 Page 3 of 5 thereafter, with copy to counsel for the respondent. In the meantime, since further investigation into the aforesaid FIR No. 129/2021 has already been stayed by a Coordinate Bench of the Hon'ble Bombay High Court, it is directed that, if and to the extent, the impugned ECIR No. 07/HIU/2021 is predicated on the same offence as is subject matter of FIR No. 129/2021, the respondents shall forebear from any coercive action pursuant to the impugned ECIR.
List on 16.03.2022."
Mr. Amit Mahajan, learned CGSC states that although, they have instituted a transfer petition bearing T.P.(CRL.) No. 103/2022 before the Hon'ble Supreme Court of India seeking transfer of the petition being W.P.(Crl.) No. 408/2022 titled „Harish Fabiani & Ors. vs. Enforcement Directorate & Ors.‟ pending adjudication before this court wherein the constitutional vires of sections 50(2) to (4) of the Prevention of Money Laundering Act, 2002 is challenged, however the same is yet to be listed for hearing before the Hon'ble Supreme Court of India.
In view of the foregoing, subject to Mr. Gagan Banga, the petitioner No. 2 in W.P. (Crl.) No. 443/2022 and Mr. Atul Chordia, the petitioner in W.P.(Crl.) No. 440/2022 continuing to appear before the Enforcement Directorate, in response to the summons issued to them, no coercive steps be taken against them in pursuance to the ECIR No. ECIR/07/HIU/2021, impugned in these proceedings.
A copy of this order be furnished to learned counsel appearing on behalf of the parties, through electronic mail; and be also uploaded on the website of this court forthwith.
W.P.(CRL.) Nos. 440/2022 & 443/2022 Page 4 of 5List these petitions along with W.P.(Crl.) No. 408/2022 titled „Harish Fabiani & Ors. vs. Enforcement Directorate & Ors.‟ on 16.03.2022.
SIDDHARTH MRIDUL, J.
ANOOP KUMAR MENDIRATTA, J.
MARCH 2, 2022/j Click here to check corrigendum, if W.P.(CRL.) Nos. 440/2022 & 443/2022 Page 5 of 5