Prevention of Money Laundering Act (PMLA) – Powers of the ED – Communication to Third Parties – Judicial Review – The Court examined the scope of ED’s authority under Section 66(2) of the PMLA. The petitioner contended that ED overstepped its statutory powers by coercing the petitioner’s customers to file criminal complaints through a questionnaire. However, the Court held that the ED was within its rights to gather information in furtherance of its investigation into proceeds of crime, and such actions were not violative of statutory or constitutional provisions. The communication merely sought to gather material relevant to the investigation [Paras 1.2, 3.13-3.18].

No Quashing of ECIR or Communication – Lawful Investigation Powers – The petitioner's plea for quashing the Enforcement Case Information Report (ECIR) and the communication was dismissed. The Court observed that ongoing investigations were justified, given that one of the original FIRs remained pending, and the ECIR could include subsequent related complaints. Moreover, ED’s actions to solicit information and share it with other enforcement agencies, such as the Economic Offences Wing (EOW), were permissible under the PMLA [Paras 3.9, 3.8-3.13].

Decision: Petition dismissed – The communication by ED was found to be lawful, and no grounds were established to quash the ECIR or restrict ED’s investigation methods under the PMLA. The Court upheld the ED’s powers to investigate and gather information regarding money laundering [Paras 3.17-3.18].

Criminal Law – Quashing of Proceedings Under the Drugs and Cosmetics Act – Madras High Court quashes the criminal complaint against Sumathi, accused of selling drugs without a pharmacist's supervision – Allegations stem from an inspection on 30/09/2021 at M/s Pradhan Mandri Bharthiya Janaushadhi Kendra by the Drug Inspector, which resulted in a complaint against both the proprietor, Kalidass, and his wife, Sumathi (A-2) – Petitioner argued lack of involvement in the shop's daily operations, claiming she was only temporarily managing the shop in her husband's absence – High Court finds no substantial evidence against Sumathi, noting that mere presence during inspection is insufficient for prosecution under Section 18(c) r/w Rule 65(2) of the Drugs and Cosmetics Act, 1940 [Paras 2-11].

Evidence – Insufficiency of Evidence – High Court emphasizes lack of direct evidence linking Sumathi to the alleged drug sales – Inspector's presumption of Sumathi's involvement due to her presence during the inspection deemed inadequate without corroborating evidence of her direct involvement in the sales – Court highlights procedural lapse in not conducting a test purchase to verify the complaint, leading to the conclusion that the complaint against Sumathi lacks prima facie merit [Paras 9-11].

Decision – Quashing of Complaint – Held – The complaint against Sumathi (A-2) is quashed due to insufficient evidence demonstrating her active management or involvement in the contravention of the Drugs and Cosmetics Act – Case against her in C.C. No.599/2024 dismissed, and connected miscellaneous petitions closed [Para 11].

Criminal Law – Parole – Premature Release – Constitutional Law – Writ Petition under Articles 226 and 227 of the Constitution of India – Request for Premature Release – Petitioner challenges the failure of the Life Convicts Premature Release Committee to act in compliance with notification Annex-A, seeking a mandamus for his premature release after serving over 17 years in jail for life imprisonment under IPC sections 347, 364(A), 120(B), 397 [Para 1].

Judicial Custody and Release – Eligibility and Procedure for Premature Release – Petitioner's case recommended by Advisory Committee, still pending before the Release Committee. Reference made to similar cases and Supreme Court directives in RASHIDUL JAFAR @ CHOTA vs. STATE OF UTTAR PRADESH for implementing policies allowing premature release without the necessity of an application by the convict [Paras 3-5].

High Court Directions – Mandamus Issued for Timely Meeting of Release Committee – High Court orders Karnataka State Government to ensure the Life Convicts Release Committee meets bi-monthly, addressing backlogs and procedural delays in considering premature release applications. Petitioner granted general parole until committee review, with specific conditions for behavior and possible extension of parole [Paras 6-9].

Decision – Grant of Parole and Directive for Systematic Review – Writ petition allowed; respondents directed to release petitioner on a 90-day parole with strict conditions against unlawful activities, ensuring systematic review of premature release cases in compliance with apex court directions and state policies [Paras 8-9].

Narcotic Drugs and Psychotropic Substances Act (NDPS), 1985 – Application for Extension of Investigation Time and Denial of Default Bail – High Court dismisses petitions challenging the extension of time for investigation under Section 36A of the NDPS Act and the denial of default bail under Section 167(2) of the Cr.P.C. – Accused involved in the conspiracy to transport Methamphetamine, arrested following intelligence-led operations. Initial investigation not completed within 180 days, leading to an application for time extension, which was granted by the Special Court. Subsequent default bail application denied, with the court holding the extension of investigation time as valid and the right to default bail as not infallible [Paras 2-16].

Judicial Review – Validity of Extension of Investigation Time – High Court finds no infraction in procedure; application for extension filed 10 days before the expiry of the 180-day period, ensuring compliance with Section 36A(4) of the NDPS Act. The court’s decision supported by specific reasons for the investigation extension, including ongoing efforts to trace other associates and suppliers involved in the drug trafficking operation [Paras 12-14].

Criminal Procedure – Denial of Default Bail – The court confirms that the timing and grounds of the extension application preclude the grant of default bail. The petitioner's subsequent application for default bail was properly dismissed based on the extended time for filing the final report, aligning with statutory and judicial requirements [Paras 15-16].

Decision – Dismissal of Petitions – The petitions challenging the extension of investigation time and the denial of default bail are dismissed, endorsing the procedural correctness and judicial discretion exercised by the trial court. The detailed reasoning illustrates adherence to legal standards and consideration of investigatory complexities in drug trafficking cases [Para 16].

Dowry Harassment – Quashing of FIR – The petitioners sought quashing of the FIR on the ground that the allegations were vague and lacked specific details – The Court observed that the allegations made against the petitioners, who are the informant's parents-in-law, were general and did not meet the threshold for constituting cruelty under Section 498-A IPC – Held that vague statements without specific allegations or details do not constitute a valid case for prosecution under the said sections​.

Abuse of Process – Section 482 CrPC – The Court emphasized that continuing proceedings against the petitioners would amount to an abuse of the process of law, as there were no specific accusations of cruelty or harassment directed against them – Quashing of the FIR ordered​.

Decision: Petition allowed – FIR No. 8 of 2022 and consequent proceedings quashed​.

Prevention of Money Laundering Act (PMLA) – Section 66 – Sharing of Information – Whether the ED exceeded its jurisdiction under Section 66(2) by sending a questionnaire to customers and compelling them to file complaints – Held, the ED's action of soliciting information was within its powers under the PMLA, and the questionnaire aimed to gather information about the proceeds of crime – No coercion or illegal pressure was exerted on the customers – [Paras 2.2, 3.2].

Money Laundering – Predicate Offence and ECIR – The petitioner argued that since 31 out of 32 FIRs had been quashed or settled, the Enforcement Case Information Report (ECIR) should be quashed – The Court held that the proceedings could continue as long as there was one FIR still pending – The ECIR could include any subsequent FIRs under Section 44 of the PMLA – [Paras 3.2, 3.25].

Scope of Investigation – Section 50 of PMLA – The Court emphasized that the ED had the power to summon individuals, request documents, and gather information under Section 50 of the PMLA – The collection of information through a questionnaire was part of the investigation process and did not violate any statutory provision – [Paras 3.28, 4.1].

Judicial Review – Scope of Interference in Investigation – The Court noted that the scope of judicial review in matters of investigation is limited and the courts should not interfere unless there is a clear abuse of power – In this case, the ED acted within its legal mandate, and there was no basis to quash the proceedings – [Paras 3.22, 3.24].

Decision: Petition Dismissed – The High Court dismissed the writ petition, holding that the ED acted within the framework of the law in its investigation and there was no basis for quashing the ECIR or the communication sent to the customers – [Paras 4.1, 4.2].

Fair Trial – Right to Legible Copy of Section 164 Statement – The accused sought a legible copy of the victim’s statement recorded under Section 164 Cr.P.C., as the copy provided was illegible – The Special Judge denied the request, suggesting the Magistrate could be summoned to explain the contents during trial – Held: The refusal to provide a legible copy of the 164 statement undermines the accused's right to a fair trial, guaranteed by the Constitution – The accused has a statutory right to use the 164 statement for contradiction during cross-examination – Ensuring a readable copy is crucial for the accused’s defense [Paras 1-5].

Procedure – Issuance of Legible Copy of Section 164 Statement – The court found that the only just course is to provide the accused with a readable copy of the 164 statement before the commencement of the trial – The Special Judge is directed to issue a legible copy, with assistance from the staff of the Magistrate Court if necessary – The trial can then proceed with the assurance that the accused's rights are protected [Paras 6-7].

Decision – Order Set Aside – The impugned order refusing to provide a readable copy of the 164 statement is set aside – The Special Judge is instructed to issue a legible copy within 15 days from the date of receipt of the order – The case is disposed of with these directions to ensure a fair trial [Para 8].

Criminal Law – Dismissal of Discharge Petition in Criminal Revision Case – Petitioners sought discharge from charges of cheating under Sections 420 and 506(ii) IPC, along with conspiracy under Section 34 IPC in relation to a property sale that turned contentious. High Court of Madras examined the circumstances surrounding the execution of the sale and subsequent accusations of failing to vacate property occupiers, concluding that the matter, while having a civil flavor, contained elements justifying the continuation of criminal proceedings. The court found that the allegations, supported by witness statements and documentary evidence, necessitated a full trial to resolve factual disputes, rejecting the discharge petition [Crl.R.C.No.1402 of 2024, Paras 1-10].

Evidence Evaluation – Adequacy of Documentary and Testimonial Evidence – The High Court considered various pieces of evidence including a sale deed stating the property was sold "AS IS WHERE IS," testimonies from auction participants, and bank officials. Despite claims of extensive civil proceedings related to the property, the court deemed the criminal charges warranted further examination at trial, particularly the accusations of failing to vacate property occupiers despite receiving payments purportedly for that purpose [Paras 4-9].

Decision – Denial of Discharge – High Court held that the disputed facts concerning the execution of the property sale and the subsequent civil and criminal complaints necessitated detailed examination at trial rather than at the discharge stage. It emphasized that the intertwinement of civil and criminal elements did not preclude the continuation of criminal proceedings, underscoring the need for a trial to resolve inconsistencies and factual disputes in the case [Paras 10, Judgment dated 04.09.2024].

Criminal Law – Plantations Labour Act Violations – Cognizance of Complaint – Complaint filed against directors and managers of The Bombay Burmah Trading Corporation Limited for non-compliance with provisions under the Plantations Labour Act and Tamil Nadu Plantation Labour Rules regarding the maintenance of labour quarters, provision of potable water, and sanitation. The petitioners challenged the cognizance of the complaint on grounds including the death of two accused, resignation of three others before the alleged violations, and non-inclusion of the company as an accused.

Sanction for Prosecution – Non-Application of Mind – The Court found that the sanction for prosecution was granted without proper application of mind, as it did not consider the replies submitted by the petitioners addressing the alleged violations. Additionally, the complaint was filed beyond the statutory period without justification or reference to the petitioners’ replies.

Proceedings Against Company Officials – Legality – The Court held that the prosecution of directors and managers without arraying the company as an accused is not permissible. It was observed that there were no specific allegations against the petitioners for any individual act warranting their prosecution.

Decision:

Criminal revision petitions allowed. The order of the Judicial Magistrate, Udhagamandalam, taking cognizance of the complaint is set aside. The petitioners are discharged from the case.