2022 (12) TMI 913 - HC - Money Laundering

Seeking directions to the Respondent Adjudicating Authority, PMLA, to supply the legible copies of all the Relied-Upon Documents - seeking extension of time period for filing the reply to the Show Cause Notice - HELD THAT - The court has also seen a copy of the bundle of documents. Several of the documents are illegible or unreadable. Be that as it may, since the issue in the present petition only relates to legible copies of the RUDs being supplied, this Court is of the opinion that the said issue need not be delved into further, as the same is moot, in light of the judgment of this Court in J.K. TYRE AND INDUSTRIES LTD., KP SANGHVI AND SONS LLP ANR., SHRI VISHWANATH OVERSEAS, PARAS IMPO EXPO PVT. LTD., ALOK INDUSTRIES LIMITED, S.N. KAPOOR EXPORTS, M/S. HAMILTON HOUSEWARES PVT. LTD., SNB ENTERPRISES PVT. LTD., ORBIT EXPORTS LTD., SHANTIVIJAY JEWELS LTD., MAXIS INDUSTRIES, M/S. BLOSSOM FABRICS LIMITED, PROMPT INTERNATIONAL, M/S. MAYA TRADES, EASTMAN INDUSTRIES LIMITED, M/S. SUPRINT TEXTILES JAIPUR PVT. LTD., M/S. SUKU INNOVATIVES VERSUS DIRECTORATE OF ENFORCEMENT ANR., UNION OF INDIA ANR. 2021 (10) TMI 1176 - DELHI HIGH COURT . An inspection of all the original documents constituting the RUDs be given to the Petitioner or two representatives of the Petitioner, including a counsel, on 22nd December, 2022 at 11 00 a.m. - For the purposes of the said inspection, the Petitioner or the representatives of the Petitioner shall visit the office of the ED on the said date, and have a meeting with Mr. Amit Monga, the Investigating Officer. Upon the copies of the RUDs being supplied to the Petitioner or his representatives, after inspection, the reply to the Original Complaint shall be filed by the Petitioner, by 15th January, 2023. The Adjudicating Authority shall consider the reply filed by the Petitioner and adjudicate the matter, in accordance with law - Petition disposed off.

Summary

Issues:
1. Supply of legible copies of Relied-Upon Documents (RUDs) by the Adjudicating Authority.
2. Extension of time period for filing reply to Show Cause Notice dated 22nd September, 2022, in accordance with the Prevention of Money Laundering Act (PMLA).

Issue 1: Supply of Legible Copies of RUDs
The petitioner filed a petition seeking directions for the Adjudicating Authority, PMLA, to provide legible copies of all RUDs annexed with the Original Complaint. The petitioner highlighted that a provisional attachment order was passed by the Directorate of Enforcement (ED) against them, and the RUDs supplied were illegible or cropped out. Despite multiple requests, the Respondent failed to provide legible copies of the RUDs. The petitioner argued the inability to file a reply without clear RUDs, citing a judgment emphasizing the duty of the Adjudicating Authority to supply all relied-upon documents to ensure a fair opportunity for the respondent.

Issue 2: Extension of Time for Filing Reply
The petitioner also sought an extension of the time period for filing a reply to the Show Cause Notice issued by the Adjudicating Authority. Although the Respondent granted a 10-day extension, the issue of illegible RUDs remained unaddressed. The Respondent's response directed the petitioner to file a reply in hard copy and soft copy formats within a specified timeline, emphasizing the importance of adherence to the schedule. The petitioner argued that the inability to access clear RUDs hindered their ability to file a comprehensive reply within the given timeframe.

Court's Analysis and Judgment
The court acknowledged the issue of illegible RUDs but decided not to delve further into it, citing a previous judgment emphasizing the duty of the Adjudicating Authority to provide clear RUDs for a fair opportunity to respond. The court issued directions for an inspection of original documents constituting the RUDs to be given to the petitioner or their representatives. Following the inspection, the petitioner was directed to file a reply by a specified date, and the Adjudicating Authority was instructed to adjudicate the matter accordingly. The court disposed of the petition and pending applications based on the provided directions.