Delhi High Court - Orders
Rui Chuang Technologies Pvt Ltd vs Directorate Of Enforcement & Anr on 8 August, 2022
Author: Yashwant Varma
Bench: Yashwant Varma
$~38, 40, 44, 47, 53 to 58, 60, 61, 65 & 71
* IN THE HIGH COURT OF DELHI AT NEW DELHI
38
+ W.P.(C) 11661/2022, CM APPL. 34622/2022(Stay)
RUI CHUANG TECHNOLOGIES PVT LTD ..... Petitioner
Through: Mr. Mohit Mathur, Senior Advocate
and Mr. Rajshekhar Rao, Senior
Advocate with Mr. Rajiv Mohan, Ms.
Pooja Chandra, Ms. Priyadarshini
Dewan, Mr. Kunal Dewan, Ms.
Aarohi Mikkilineni, Mr. Aanshul
Agarwal, Mr. Rishi Gupta, Mr. Sumit
Mishra, Mr. Mohit Joshi, Mr. Abhay
Sachan and Mr. Saurabh Kushwaha,
Advocates
versus
DIRECTORATE OF ENFORCEMENT & ANR. ..... Respondent
Through: Mr. Zoheb Hossain and Mr. Vivek
Gurnani, Advocates with Mr. Amit
Kumar (AD, ED), Mr. Tarun
Bhardwaj, (EO, ED) and Mr.
Sudeepto (LC, ED)
40
+ W.P.(C) 11671/2022, CM APPL. 34698/2022(Stay)
M/S UNIMAY ELECTRONIC PVT. LTD. ..... Petitioner
Through: Mr. Mohit Mathur, Senior Advocate
and Mr. Rajshekhar Rao, Senior
Advocate with Mr. Rajiv Mohan, Ms.
Pooja Chandra, Ms. Priyadarshini
Dewan, Mr. Kunal Dewan, Ms.
Aarohi Mikkilineni, Mr. Aanshul
Agarwal, Mr. Rishi Gupta, Mr. Sumit
Mishra, Mr. Mohit Joshi, Mr. Abhay
Sachan and Mr. Saurabh Kushwaha,
Signature Not Verified
Digitally Signed
By:NEHA
Signing Date:08.08.2022
18:33:16
Advocates
versus
DIRECTORATE OF ENFORCEMENT & ANR. ..... Respondent
Through: Mr. Zoheb Hossain and Mr. Vivek
Gurnani, Advocates with Mr. Amit
Kumar (AD, ED), Mr. Tarun
Bhardwaj, (EO, ED) and Mr.
Sudeepto (LC, ED)
44
+ W.P.(C) 11700/2022, CM APPL. 34809-10/2022
M/S TECHNOLOGY TRANSFORMS PVT. LTD. ..... Petitioner
Through: Mr. Rajiv Mohan, Ms. Pooja
Chandra, Ms. Priyadarshini Dewan,
Mr. Kunal Dewan, Mr. Saurabh
Kushwaha, Ms. Aarohi Mikkilineni,
Mr. Aanshul Agarwal, Mr. Rishi
Gupta, Mr. Mohit Joshi and Mr.
Abhay Sachan, Advocates
versus
DIRECTORATE OF ENFORCEMENT & ANR. ..... Respondent
Through: Mr. Zoheb Hossain and Mr. Vivek
Gurnani, Advocates with Mr. Amit
Kumar (AD, ED), Mr. Tarun
Bhardwaj, (EO, ED) and Mr.
Sudeepto (LC, ED)
47
+ W.P.(C) 11718/2022, CM APPL. 34836-37/2022
M/S JUNWEI ELECTRONIC PVT. LTD. ..... Petitioner
Through: Mr. Rajiv Mohan, Ms. Pooja
Chandra, Ms. Priyadarshini Dewan,
Mr. Kunal Dewan, Mr. Saurabh
Signature Not Verified
Digitally Signed
By:NEHA
Signing Date:08.08.2022
18:33:16
Kushwaha, Ms. Aarohi Mikkilineni,
Mr. Aanshul Agarwal, Mr. Rishi
Gupta, Mr. Mohit Joshi, Mr. Abhay
Sachan and Mr. Divay Thareja,
Advocates
versus
DIRECTORATE OF ENFORCEMENT & ANR. ..... Respondent
Through: Mr. Zoheb Hossain and Mr. Vivek
Gurnani, Advocates with Mr. Amit
Kumar (AD, ED), Mr. Tarun
Bhardwaj, (EO, ED) and Mr.
Sudeepto (LC, ED)
53
+ W.P.(C) 11762/2022, CM APPL. 35072/2022 & 35227/2022
M/S YINGJIA COMMUNICATION PVT. LTD. ..... Petitioner
Through: Mr. Rajiv Mohan, Ms. Pooja
Chandra, Ms. Priyadarshini Dewan,
Mr. Kunal Dewan, Mr. Saurabh
Kushwaha, Ms. Aarohi Mikkilineni,
Mr. Aanshul Agarwal, Mr. Rishi
Gupta, Mr. Mohit Joshi and Mr.
Abhay Sachan, Advocates
versus
DIRECTORATE OF ENFORCEMENT & ANR. ..... Respondent
Through: Mr. Zoheb Hossain and Mr. Vivek
Gurnani, Advocates with Mr. Amit
Kumar (AD, ED), Mr. Tarun
Bhardwaj, (EO, ED) and Mr.
Sudeepto (LC, ED)
54
+ W.P.(C) 11764/2022, CM APPL. 35073-74/2022
M/S JOINMAY ELECTRONIC PVT. LTD. ..... Petitioner
Through: Mr. Rajiv Mohan, Ms. Pooja
Signature Not Verified
Digitally Signed
By:NEHA
Signing Date:08.08.2022
18:33:16
Chandra, Ms. Priyadarshini Dewan,
Mr. Kunal Dewan, Mr. Saurabh
Kushwaha, Ms. Aarohi Mikkilineni,
Mr. Aanshul Agarwal, Mr. Rishi
Gupta, Mr. Mohit Joshi and Mr.
Abhay Sachan, Advocates
versus
DIRECTORATE OF ENFORCEMENT & ANR. ..... Respondent
Through: Mr. Zoheb Hossain and Mr. Vivek
Gurnani, Advocates with Mr. Amit
Kumar (AD, ED), Mr. Tarun
Bhardwaj, (EO, ED) and Mr.
Sudeepto (LC, ED)
55
+ W.P.(C) 11765/2022, CM APPL. 35075-76/2022
M/S HUIJIN ELECTRONIC INDIA PVT. LTD. ..... Petitioner
Through: Mr. Rajiv Mohan, Ms. Pooja
Chandra, Ms. Priyadarshini Dewan,
Mr. Kunal Dewan, Mr. Saurabh
Kushwaha, Ms. Aarohi Mikkilineni,
Mr. Aanshul Agarwal, Mr. Rishi
Gupta, Mr. Mohit Joshi and Mr.
Abhay Sachan, Advocates
versus
DIRECTORATE OF ENFORCEMENT & ANR. ..... Respondent
Through: Mr. Zoheb Hossain and Mr. Vivek
Gurnani, Advocates with Mr. Amit
Kumar (AD, ED), Mr. Tarun
Bhardwaj, (EO, ED) and Mr.
Sudeepto (LC, ED)
56
+ W.P.(C) 11766/2022, CM APPL. 35077-78/2022
M/S HAIJIN TRADE INDIA PVT. LTD. ..... Petitioner
Signature Not Verified
Digitally Signed
By:NEHA
Signing Date:08.08.2022
18:33:16
Through: Mr. Rajiv Mohan, Ms. Pooja
Chandra, Ms. Priyadarshini Dewan,
Mr. Kunal Dewan, Mr. Saurabh
Kushwaha, Ms. Aarohi Mikkilineni,
Mr. Aanshul Agarwal, Mr. Rishi
Gupta, Mr. Mohit Joshi and Mr.
Abhay Sachan, Advocates
versus
DIRECTORATE OF ENFORCEMENT & ANR. ..... Respondent
Through: Mr. Zoheb Hossain and Mr. Vivek
Gurnani, Advocates with Mr. Amit
Kumar (AD, ED), Mr. Tarun
Bhardwaj, (EO, ED) and Mr.
Sudeepto (LC, ED)
57
+ W.P.(C) 11767/2022, CM APPL. 35079-80/2022
M/S FANGS TECHNOLOGY PVT. LTD. ..... Petitioner
Through: Mr. Rajiv Mohan, Ms. Pooja
Chandra, Ms. Priyadarshini Dewan,
Mr. Kunal Dewan, Mr. Saurabh
Kushwaha, Ms. Aarohi Mikkilineni,
Mr. Aanshul Agarwal, Mr. Rishi
Gupta, Mr. Mohit Joshi and Mr.
Abhay Sachan, Advocates
versus
DIRECTORATE OF ENFORCEMENT & ANR. ..... Respondent
Through: Mr. Zoheb Hossain and Mr. Vivek
Gurnani, Advocates with Mr. Amit
Kumar (AD, ED), Mr. Tarun
Bhardwaj, (EO, ED) and Mr.
Sudeepto (LC, ED)
58
+ W.P.(C) 11768/2022, CM APPL. 35081-82/2022
Signature Not Verified
Digitally Signed
By:NEHA
Signing Date:08.08.2022
18:33:16
M/S IQONIC MOBILE PVT LTD ..... Petitioner
Through: Mr. Anshul Agrawal, Ms.
Priyadarshini Dewan, Mr. Kunal
Dewan, Mr. Saurabh Kushwaha, Ms.
Aarohi Mikkilineni, Mr. Rishi Gupta
and Mr. Divay Thareja, Advocates
versus
DIRECTORATE OF ENFORCEMENT & ANR. ..... Respondent
Through: Mr. Zoheb Hossain and Mr. Vivek
Gurnani, Advocates with Mr. Amit
Kumar (AD, ED), Mr. Tarun
Bhardwaj, (EO, ED) and Mr.
Sudeepto (LC, ED)
60
+ W.P.(C) 11776/2022, CM APPL. 35099/2022 & 35100/2022
M/ S AOHUA MOBILE INDIA PVT. LTD ..... Petitioner
Through: Mr. Anshul Agrawal, Ms.
Priyadarshini Dewan, Mr. Kunal
Dewan, Mr. Saurabh Kushwaha, Ms.
Aarohi Mikkilineni, Mr. Rishi Gupta
and Mr. Divay Thareja, Advocates
versus
DIRECTORATE OF ENFORCEMENT & ANR. ..... Respondent
Through: Mr. Zoheb Hossain and Mr. Vivek
Gurnani, Advocates with Mr. Amit
Kumar (AD, ED), Mr. Tarun
Bhardwaj, (EO, ED) and Mr.
Sudeepto (LC, ED)
61
+ W.P.(C) 11780/2022, CM APPL. 35116-17/2022
M/S JOINMAY ELECTRONICS PVT LTD. ..... Petitioner
Through: Mr. Rajiv Mohan, Ms. Pooja
Chandra, Ms. Priyadarshini Dewan,
Signature Not Verified
Digitally Signed
By:NEHA
Signing Date:08.08.2022
18:33:16
Mr. Kunal Dewan, Mr. Saurabh
Kushwaha, Ms. Aarohi Mikkilineni,
Mr. Aanshul Agarwal, Mr. Rishi
Gupta, Mr. Mohit Joshi and Mr.
Abhay Sachan, Advocates
versus
DIRECTORATE OF ENFORCEMENT & ANR. ..... Respondent
Through: Mr. Zoheb Hossain and Mr. Vivek
Gurnani, Advocates with Mr. Amit
Kumar (AD, ED), Mr. Tarun
Bhardwaj, (EO, ED) and Mr.
Sudeepto (LC, ED)
65
+ W.P.(C) 11797/2022, CM APPL. 35146-47/2022
M/S HISOA ELECTRONIC PVT. LTD. ..... Petitioner
Through: Mr. Rajshekhar Rao, Senior Advocate
with Mr. Rajiv Mohan, Ms. Pooja
Chandra, Ms. Priyadarshini Dewan,
Mr. Kunal Dewan, Mr. Saurabh
Kushwaha, Ms. Aarohi Mikkilineni,
Mr. Rishi Gupta, Mr. Mohit Joshi,
Mr. Harshil Wason, Mr. Abhay
Sachan and Mr. Divay Thareja,
Advocates
versus
DIRECTORATE OF ENFORCEMENT & ANR. ..... Respondent
Through: Mr. Zoheb Hossain and Mr. Vivek
Gurnani, Advocates with Mr. Amit
Kumar (AD, ED), Mr. Tarun
Bhardwaj, (EO, ED) and Mr.
Sudeepto (LC, ED)
71
+ W.P.(C) 11819/2022, CM APPL. 35216-17/2022
M/S HAICHENG MOBILE INDIA PVT. LTD ..... Petitioner
Signature Not Verified
Digitally Signed
By:NEHA
Signing Date:08.08.2022
18:33:16
Through: Mr. Anshul Agrawal, Ms.
Priyadarshini Dewan, Mr. Kunal
Dewan, Mr. Saurabh Kushwaha, Ms.
Aarohi Mikkilineni, Mr. Rishi Gupta
and Mr. Divay Thareja, Advocates
versus
DIRECTORATE OF ENFORCEMENT & ANR. ..... Respondent
Through: Mr. Zoheb Hossain and Mr. Vivek
Gurnani, Advocates with Mr. Amit
Kumar (AD, ED), Mr. Tarun
Bhardwaj, (EO, ED) and Mr.
Sudeepto (LC, ED)
CORAM:
HON'BLE MR. JUSTICE YASHWANT VARMA
ORDER
% 08.08.2022
1. This batch of writ petitions have been preferred by the petitioners assailing the validity of debit freeze orders made by the respondents in purported exercise of powers conferred by Section 17(1A) of the Prevention of Money Laundering Act, 2002 ["PMLA"].
2. The petitioners here are stated to be the agents of Vivo Mobile India Pvt. Ltd. which had also challenged debit freeze orders in terms of W.P.(C) 10382/2022. While entertaining that challenge, the Court had on 13 July 2022 passed interim orders permitting the petitioner to operate its bank accounts on terms provided in that order. The Court notes that in that writ petition, the allegation against the petitioner there was with respect to proceeds of crime which had at that time been quantified at approximately Rs. 1200 crores. The aforesaid amount was securitised by that petitioner by providing a bank guarantee of Rs. 950 crores coupled with its undertaking to maintain a credit balance of Rs. 250 crores in the subject accounts at all times.
Signature Not Verified Digitally Signed By:NEHA Signing Date:08.08.2022 18:33:163. Mr. Hossain, learned counsel appearing for the Directorate, however points out that, all these writ petitioners have assailed debit freeze orders after the expiry of the period of thirty days as contemplated under Section 17(4) of the Act and whereafter an original application has been duly moved before the Adjudicating Authority seeking continuation of the freezing order made under Section 17(1A) of the PMLA.
4. It is further pointed out that the present batch is not confined to remittances of proceeds of crime which had been quantified at Rs. 1200 crores and formed subject matter of W.P.(C) 10382/2022. According to Mr. Hossain, the material gathered in the course of the search would indicate that the transactions between these petitioners and Vivo Mobile India Pvt. Ltd. resulted in the generation of proceeds of crime amounting to Rs. 38,641 crores.
5. Bearing the aforesaid facts in mind coupled with the circumstance that the Adjudicating Authority has already been moved by the respondents, the ends of justice would warrant the disposal of these writ petitions leaving it open to the petitioners to raise all contentions on merits before that Authority.
6. The Court also takes note of the fair suggestion made by Mr. Hossain who contended that subject to all the petitioners maintaining a balance of the amounts which stood to the credit of the freezed accounts on the date of freezing of the individual accounts, permission may be accorded to them to operate the accounts and the debit freeze orders shall stand modified accordingly.
7. In view of the aforesaid stand as taken, the suggestion is accepted. The petitioners may file their requisite undertakings before the competent Signature Not Verified Digitally Signed By:NEHA Signing Date:08.08.2022 18:33:16 authority of the respondents to effect compliance with the terms set out in paragraph 6 above forthwith. Upon the filing of those undertakings, the respondents may permit operation of the concerned accounts subject to the petitioners complying with the aforesaid condition.
8. The Court further observes that it shall be open to the Directorate to duly verify that all the petitioners maintain balances as were standing to the credit of the respective accounts on the date of seizure and that those balances are retained and preserved at all times during the pendency of proceedings before the Adjudicating Authority. All the petitioners shall also furnish to the Enforcement Directorate all details of remittances that may be made from the concerned bank accounts every 48 hours.
9. The writ petitions along with pending applications stand disposed of accordingly.
10. Order dasti under the signatures of Court Master.
YASHWANT VARMA, J.
AUGUST 8, 2022/neha Signature Not Verified Digitally Signed By:NEHA Signing Date:08.08.2022 18:33:16