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TMI Blog2015 (3) TMI 1432X X X X Extracts X X X X X X X X Extracts X X X X ..... .2013 and 27.07.2013, the summons, the seizure Memorandum dated 22.05.2014, the communication dated 22.09.2014 and the provisional attachment order dated 27.11.2014 variously contained in Annexures 15 to 20, 23 and 24 respectively and for other ancillary reliefs. 2. I.A. No. 1044 of 2015 has been filed praying for amendment of the relief portion in the writ petition, inter alia, seeking quashing/setting aside of the ECIR dated 13.06.2014 (Annexure-35 series) as also the impugned show cause notices all dated 26.12.2014 (Annexure-36 series). 3. We allow I.A. No. 1044 of 2015 and the same is treated as forming part of the writ petition, wherein the prayer shall stand amended accordingly. 4. Heard the parties. The matter is listed for admiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll as other similar activities. Scrutiny of the balance-sheets of the Group Companies also revealed cross-shareholding leading to an inference that to defraud the public, the deposits collected from the public was shown as share capital of the group companies constituting fake capital by changing the colour of public deposits collected illegally into share capital of the group companies. On initial analysis of the documents collected during course of investigation, it came to light that an amount of Rs. 466,19,08,264/- had been collected from the investors in the Odisha region and further that total collections from the public at large exceeded Rs. 15,484 crores. On these as well as other extensive materials enumerated in the provisional at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he cause of action has arisen within the territorial jurisdiction of this Court and in view of Article 226(2) of the Constitution of India, the writ petition is maintainable. For this purpose he relies on a recent decision of the Hon'ble Apex Court reported in (2014) 9 Supreme Court Cases 329 (Nawal Kishore Sharma v. Union of India). 7. We are in agreement with the submissions of learned senior counsel for the petitioner and have no hesitation in holding that in view of the fact that some of the petitioner-company's accounts maintained with banks located within the State of Bihar have been attached, the cause of action has partially arisen within the State of Bihar and as such, in view of Article 226(2) of the Constitution of India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at such a decision that an order confirming the provisional attachment made under Section 5(1) of the PMLA can be passed. Furthermore, if upon conclusion of trial under the Act, the Special Court finds that the offence of money laundering has not taken place and the property is not involved in money laundering, the same shall be ordered to be released under Section 8(6) of the PMLA. In other words, the adjudicating authority is vested with the requisite powers to determine the legality and validity of the provisional attachment and whether the Petitioner has indulged in the offence of money laundering. 10. As indicated above, the allegations against the Petitioner-Company, in a nutshell, are that it dishonestly collected public deposits a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and circumstances of the case, therefore, we would refrain at this stage from expressing any opinion on the issue of money laundering by the Petitioner or the applicability of the PMLA, which if done, would not only preempt the exercise of jurisdiction statutorily entrusted to the authorities under the PMLA, but is also likely to prejudice the Petitioner in the proceedings before the adjudicating authority. The elaborate statutory provisions of PMLA are well-equipped to deal with cases of the present nature and the adjudicating authority is amply imbued with powers under Section 8 of the PMLA to decide the validity of the provisional attachment. When the Petitioner's claims based in considerable proportion on issues of fact are c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sleading. In these circumstances, the challenge to the show cause notices dated 26.12.2014 issued to various other persons as contained in Annexure-36 series to the amendment petition at the instance of the Petitioner-Company is clearly completely misconceived. 16. We also note that the interim relief granted to the Petitioner-Company by order dated 23.12.2014 was effective specifically only till the next date of hearing and is thus no longer in force. Needless to say, therefore, the Respondent authorities shall be at liberty to proceed for adjudication in accordance with Section 8 of the PMLA. 17. In the above view of the matter, we do not find this a fit case calling for interference in exercise of the discretionary and extraordinary po ..... X X X X Extracts X X X X X X X X Extracts X X X X
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