2021 (10) TMI 48 - HC - Money Laundering

Acute shortage of staff members as also vacancies at the level of the Chairperson, Member (Administration) and Member (Law) - HELD THAT - Considering the fact that benches of the Adjudicating Authority hold hearings, and the quantum of cases is considerable, it is not sufficient to merely fill up the vacancies as they exist today, but there is also a need to increase the manpower within the Adjudicating Authority, in order to enable the authority to function in an efficient manner. Insofar as the Chairperson is concerned, it is submitted by Mr. Mahajan, ld. CGSC, under instructions from Mr. Pandey, that the selection for the Chairperson is underway and is likely to conclude shortly - For the positions of Member (Administration) and Member (Law), the proposal for issuance of vacancy circulars is stated to be under consideration. Since these positions have been vacant for a considerable period of time, the Government is directed to take steps for filling up the said posts, within a period of three months. Insofar as the Administrative Officer and Registrar are concerned, in view of the recommendations of the UPSC, as also the lack of a sufficient number of applicants, it appears that appointments have not taken place despite the vacancy circulars having been issued - if these vacancies cannot be filled up through fresh recruitment, the Ministry shall take steps to fill up all these vacancies through alternate means, within a period of one month from today. Let a fresh status report be filed in this regard, within a period of two months - List for conclusion of submissions in all these petitions on 30 th September, 2021 at 3 30 pm.

Summary

Issues:
1. Vacancies in the Adjudicating Authority under the Prevention of Money Laundering Act, 2002 (PMLA).
2. Filling of vacant positions and increasing manpower within the Adjudicating Authority.
3. Status of cases filed before the Adjudicating Authority.
4. Directions issued by the Court regarding filling up of vacancies and increasing staff strength.
5. Exchange of affidavits and scheduling of further proceedings.

Issue 1: Vacancies in the Adjudicating Authority under the PMLA

The Court noted the vacancies in various positions within the Adjudicating Authority, including the Chairman, Members, Administrative Officer, Registrar, and working staff. The affidavit presented detailed information on the sanctioned strength, positions filled, and remarks on vacancies. The Court highlighted the prolonged vacancies, such as the Chairman's position vacant for over a year and the Registrar position vacant for more than five years.

Issue 2: Filling of vacant positions and increasing manpower within the Adjudicating Authority

The Court emphasized the substantial workload at the Adjudicating Authority and the acute shortage of staff members, including key positions like Chairperson, Member (Administration), and Member (Law). Directions were issued to expedite the selection process for the Chairperson and to fill vacancies within three months for Member (Administration) and Member (Law). The Court also directed the Government to explore alternative means to fill vacancies if recruitment processes faced delays.

Issue 3: Status of cases filed before the Adjudicating Authority

The Court reviewed the number of cases filed before the Adjudicating Authority for comparative analysis from 2019 to 2021. The data presented showed an increase in cases over the years, indicating a growing workload for the Authority.

Issue 4: Directions issued by the Court regarding filling up of vacancies and increasing staff strength

The Court issued specific directions to address the vacancies and increase the staff strength within the Adjudicating Authority. It mandated the Government to take steps to fill vacancies within a specified timeline, considering the critical roles of Administrative Officer, Registrar, Court Masters, and working staff. The Court also highlighted the need to assess if additional staff was required based on the workload.

Issue 5: Exchange of affidavits and scheduling of further proceedings

The Court directed the exchange of affidavits between the parties and scheduled further proceedings to conclude submissions on the writ petitions. Additionally, a status report on appointments and vacancies at the Adjudicating Authority was requested to be filed within two months for ongoing monitoring and assessment.

This comprehensive summary outlines the key issues addressed in the judgment, detailing the vacancies, directions issued by the Court, and the need to address staffing shortages within the Adjudicating Authority under the PMLA.