9911796707
TMI Blog2024 (3) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... erty and take necessary measures in this regard as per provisions of PMLA, 2002. Since ECIR in an internal document created by Department before initiation of prosecution against persons involved with process or activity connected with proceeds of crime, it is not necessary to reveal the evidence collected by the ED at this stage in the summons forwarded to the petitioner. Petitioner is yet to be absolved of scheduled offence by way of discharge, acquittal or quashing and as such protection orders cannot be issued in favour of petitioner ignoring the mandate under Section 45 of PMLA, 2002 for grant of bail. Further the summoning in exercise of statutory powers cannot be stalled merely on mere apprehension that petitioner may be arrested and prosecuted on basis of summons issued after registration of ECIR, in proceedings initiated by ED. In the facts and circumstances, no grounds for interim relief are made out at this stage. It may be clarified that no observations have been made on merits or demerits of the proceedings initiated by Enforcement of Directorate at this stage, and the questions are left open to be considered in the light of investigation by ED. Application disposed of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directing the Respondent to forthwith refrain from taking any further coercive steps against the Petitioner 3. Petitioner is aggrieved by the continuance of ED investigation conducted by the respondent based on RC 0772020E0002 dated 02.12.2020 by CBI Mumbai under Section 120B read with Section 420 IPC, Section 13(2) read with Section 13(1)(d) of Prevention of Corruption Act, 1988 against M/s Technovaa Plastic Industries Private Limited (Company) and others, wherein petitioner is named as accused No. 3. 4. In brief, as per the case of the petitioner, M/s Technovaa Plastic Industries Private Limited was sanctioned a term loan of Rs. 85.62 crores by Bank of Baroda which was disbursed and utilized before 01.04.2015. The account of the company was declared NPA by Bank of Baroda on 30.03.2018 and further M/s Ernst Young were engaged for conducting forensic audit of the company for the period 01.04.2015 to 31.03.2018. 5. It is further the case of the petitioner that NCLT Ahmedabad admitted an application for initiation of Corporate Insolvency Resolution Process (CIRP) against the company. Thereafter, in one of the CoC meetings, once again M/s Ernst Young LLP was appointed by Bank of Baro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er is being summoned as a witness or suspect and neither the details of the documents and records has been specified in Annexure 1 of the summons, which are required to be investigated by ED. The entire exercise undertaken by ED is contended to be a fishing expedition and an arbitrary exercise of power. Reliance is further placed upon A.P. Mahesh Cooperative Urban Bank Shareholders Welfare Association v. Ramesh Kumar Bung and Ors., SLP (Criminal) No. 3869 of 2021 decided on July 20, 2021, Mewa Ram Jain v. State of Rajasthan and Others, S.B. Criminal Miscellaneous Petition No. 7313/2023 decided by High Court of Judicature for Rajasthan at Jodhpur on 22.11.2023. 10. On the other hand, interim relief is opposed by learned counsel for the respondent/ED. He submits that the petitioner cannot be insulated from any coercive action at the initial stage itself and no protective orders can be passed in favour of the petitioner ignoring the mandate of Section 45 of PMLA, 2002. It is further submitted that proceedings initiated by Enforcement Directorate (ED) is an independent investigation into money laundering allegations based upon the ECIR and the benefit cannot be granted at this stage me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.P. Mahesh Cooperative Urban Bank Shareholders Welfare Association v. Ramesh Kumar Bung and Ors.(supra), it was observed that Neeharika Infrastructure Pvt. Ltd. v. State of Maharashtra Ors, (2021) SCC OnLine SC 315 allows space for the High Court to pass an interim order in exceptional cases with caution and circumspection, giving brief reasons and what is frowned upon in Neeharika Infrastructure Pvt. Ltd. v. State of Maharashtra Ors (supra) is the tendency of the Courts to pass blanket, cryptic, laconic, non-speaking orders relating to no coercive steps shall be adopted . The proposition of law to aforesaid extent is not disputed but exercise of power depends upon examination of factual matrix of each case. 12. The summons issued by ED cannot be quashed merely because the relevant documents required for purpose of investigation or confrontation to the petitioner, have not been specified in the summons. It needs to be kept in perspective that under the scheme of PMLA, 2002 upon identification of existence of property being proceeds of crime, the Competent Authority is to inquire into relevant aspects in relation to such property and take necessary measures in this regard as per pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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