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2023 (6) TMI 594 - SC - Money Laundering


Issues Involved
1. De Novo Investigation
2. Proceedings by Enforcement Directorate (ED)
3. Permission to ED to Inspect Records
4. Extension of Time to Complete Investigation

Summary

Part-I: De Novo Investigation
1. Background: The High Court ordered de novo investigation based on a petition by Devasagayam, who initially lodged a complaint in 2015 but later sought de novo investigation after the inclusion of the Minister and others in the final report.
2. High Court's Decision: The High Court ordered reinvestigation to start ab initio, wiping out earlier investigations altogether.
3. Supreme Court's Analysis: The Supreme Court found the High Court's order problematic, as it was not based on the grounds raised in Devasagayam's petition. The Court highlighted that the High Court's order undermined judicial discipline and the principles laid down in Vinay Tyagi vs. Irshad Ali.
4. Conclusion: The Supreme Court set aside the High Court's order for de novo investigation, allowing further investigation to proceed without starting afresh.

Part-II: Proceedings by Enforcement Directorate (ED)
1. Background: ED registered an Information Report and issued summons based on the final report under Section 173(8) of the Code, which included offences under the Prevention of Corruption Act (PC Act).
2. High Court's Decision: The High Court restrained ED from proceeding further until the disposal of related criminal cases.
3. Supreme Court's Analysis: The Supreme Court found that the High Court's decision was only a temporary reprieve. The Supreme Court emphasized that the foundational facts for ED's investigation were present, and the proceedings were not initiated without jurisdictional facts.
4. Conclusion: The Supreme Court allowed ED to proceed with its investigation, setting aside the High Court's order.

Part-III: Permission to ED to Inspect Records
1. Background: ED sought certified copies of documents from the Special Court, which was partly allowed, but denied access to unmarked documents.
2. High Court's Decision: The High Court permitted ED to inspect documents under Rule 237 of the Criminal Rules of Practice, 2019.
3. Supreme Court's Analysis: The Supreme Court found no merit in the appeal against the High Court's order, as it did not contravene Rule 231(3) or Section 65B of the Indian Evidence Act.
4. Conclusion: The Supreme Court dismissed the appeal, allowing ED to inspect the records.

Part-IV: Extension of Time to Complete Investigation
1. Background: A petition for extension of time to complete further investigation was rejected by the High Court.
2. Supreme Court's Analysis: The Supreme Court noted that the direction for further investigation was still valid, and a final report had already been filed.
3. Conclusion: The Supreme Court dismissed the appeal, directing the Investigation Officer to proceed with further investigation and file reports within two months.

Contempt Petitions and Special Investigation Team (SIT)
1. Contempt Petitions: The petitions alleging willful disobedience by the State were dismissed, with the Supreme Court accepting the explanation provided by the State officials.
2. Special Investigation Team (SIT): The application for constituting an SIT was rejected, with liberty to file a substantial petition if future foul play is suspected.

Final Outcome
1. De Novo Investigation: Appeals allowed, High Court's order set aside.
2. ED Proceedings: Appeals allowed, High Court's order set aside.
3. Inspection of Records: Appeal dismissed.
4. Extension of Time: Appeal dismissed.
5. Contempt Petitions and SIT: Both dismissed.

 

 

 

 

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