2020 (10) TMI 535 - HC - Money Laundering

Recording of the ECIR - it is contended that the recording of the ECIR is itself bad in law since the Directorate of Enforcement ( ED ) has not followed the procedure prescribed under law, including the mandatory provisions of Chapter XII of the Cr.P.C. HELD THAT - List on 14th October 2020.

Summary

Issues:
1. Quashing of ECIR and legality of arrest and remand orders.
2. Territorial jurisdiction of the court.
3. Interim bail on medical grounds and transfer of proceedings.

Analysis:
1. The petitioner, an accused in an ECIR, seeks quashing of the ECIR, claiming it was recorded unlawfully as per Cr.P.C. and PMLA provisions. The petitioner challenges the legality of arrest by ED and subsequent remand orders, alleging non-compliance with section 19(1) of the Prevention of Money-Laundering Act 2002. The petitioner also seeks other reliefs related to the arrest and remand orders. The court takes note of these contentions and issues notice to the respondents for a detailed response.

2. The issue of territorial jurisdiction arises as the ECIR was recorded in Delhi, but the alleged offenses were committed in Mumbai. The ED argues that the jurisdiction lies with the Special Judge in Mumbai as per PMLA provisions. However, the petitioner contends that since the ECIR was recorded in Delhi, this court has jurisdiction under Article 226(2) of the Constitution. The court directs the filing of a status report to resolve the jurisdictional dispute and schedules further proceedings accordingly.

3. The petitioner seeks interim bail due to medical reasons and requests the transfer of ECIR proceedings to a court in Delhi. The court issues notice on the interim bail application and directs the ED to submit a status report on the medical grounds cited by the petitioner. The court sets a date for further proceedings to consider the interim bail request and the transfer of proceedings to a competent court in Delhi.

This judgment addresses the legality of the ECIR, arrest, and remand orders, the issue of territorial jurisdiction, and the petitioner's request for interim bail and transfer of proceedings. The court has directed the parties to submit detailed responses and status reports to resolve the legal issues raised by the petitioner effectively.