2011 (3) TMI 1789 - SC - Money Laundering

Summary

Issues involved: Stay of impugned order, commission of offence under Prevention of Money Laundering Act, extraordinary situation created by the order, detention for custodial interrogation.

In the judgment, the Supreme Court granted a stay of the operation of the impugned order passed by the Principal Judge, City Civil and Sessions Court and Special Court under the Prevention of Money Laundering Act, 2002. The Court found that the material on record prima facie disclosed the commission of an offence by the Respondent under the provisions of the Prevention of Money Laundering Act, 2002. The Court noted that the order passed by the Principal Judge created an extraordinary situation that could frustrate the ongoing investigation if allowed to stand, leading to the decision to interfere with the order at that stage. Due to the extraordinary circumstances and complexity of the issues involved, the Court authorized the detention of the Respondent for custodial interrogation by the authorities of the Enforcement Directorate for a period of four days.