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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 ..... ers 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 capable of being decided by a competent statutory authority, there appears to me little reason for this Court to exercise its extraordinary constitutional writ jurisdiction at this stage. While several show cause notices have been annexed as Annexure-36 series relating to the group companies and its officials, nothing has been brought on record to show that any such show notice was at all issued to the petitioner-company in violation of the interim order passed in its favour as aforesaid. Such statement by the Petitioner is thus misleading. In these circumstances, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 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 admission when extensive arguments have been advanced by the parties. 5. The facts of the case in brief are as follows. Pursuant to certain information received from the Deputy Inspector General of Police, EOW, Odisha, Bhubaneshwar dated 29.05.2014, a case was registered vide ECIR No. BSZO/03/2014 dated 13.06.2014 by the Assistant Director, Enforcement Directorate, (PMLA), Kolkata Zonal Office, Kolkata) and the matter was taken up for investigation under the provisions of the Prevention of Money Laundering Act, 2002 (the 'PMLA' hereinafter for brevity) and the Rules ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 attachment order, the Joint Director recorded that he had reasons to believe that if no Provisional Attachment Order was passed in the case at that crucial stage, the investments in the properties made out of proceeds of crime were likely to be concealed, transferred or dealt with in such a manner that may result in frustrating the proceedings relating to confiscation of such proceeds of crime under Chapter III of the PMLA. Accordingly, he ordered the provisional attachment of the immovable properties mentioned in Schedule-A to the order comprising 2807 Bank accounts iden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thin 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, the writ petition is maintainable before this Court. 8. Mr. Nageswara Rao has questioned the overall validity of the entire action of the Respondent authorities and more particularly, the issuance of the provisional attachment order under Section 5 of the PMLA. He submits that such provisional attachment order is wholly without jurisdiction in terms of Section 5(1)(b) of PMLA, which primarily envisages a precondition with regard to the likelihood of a proceeding relating to confiscation of the proceeds of crime being frustrated, which, in turn, presupposes the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dulged 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 as an NBFC in contravention of the provisions of the Prize Chits and Money Circulation (Banning) Act, 1978 and thereby committed the offence u/s. 420 IPC being a Scheduled Offence under the PMLA, and such proceeds of crime metamorphosed into the untainted share capital of the Petitioner's group Companies through crossholding thus amounting to the offence of money laundering under the PMLA. 11. Serious allegations have therefore been leveled against the petitioner-company and its group companies which raise the issue of their having prima-facie indulged i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 capable of being decided by a competent statutory authority, there appears to me little reason for this Court to exercise its extraordinary constitutional writ jurisdiction at this stage. 14. We also feel it necessary to observe that the averment made in paragraph 17 of I.A. No. 1044 of 2015 is not entirely accurate in stating that a host of show cause notices dated 26.12.2014 (Annexure-36 series) were issued in utter violation of the undertaking given by the respondent No. 3 before this Court, in the face of the interim order dated 23.12.2014 passed w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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