That apart, a learned Single Judge in Crl.O.P.No.21536 of 2022 has passed an order dated 07.09.2022 directing the CCB-I not to file final report in  CCB-I P.S.Crime No.161 of 2022. Superadded, the FIR does not even disclose anything about wrongful loss to the Axis Bank and wrongful gain to the accused in the transaction. The allegations in the FIR, even if is accepted as gospel truth, does not prima facie appear to have any scope for generating “proceeds of crime” at the cost of Axis Bank. It is the simple grievance of Axis Bank that, the petitioner company did not disclose to them that there is a FEMA case against them, in the application for making foreign remittance. However, as P.N.PRAKASH, J and  RMT. TEEKAA RAMAN  , J gm pointed out by Mr.B.Kumar, learned Senior Counsel, the said application form does not have column in this regard. Prima facie, we find that no ‘proceeds of crime’ has been generated pursuant to the criminal activity alleged in CCB-I P.S.Crime No.161 of 2022. The petitioner has made out a prima facie case for grant of stay. Accordingly, there shall be an order interim stay until further orders. [PNP, J.]                 [TKR, J.]                                                                                          20.10.2022    (2/2) gm W.M.P.No.27428 of 2022 in Writ Petition No.28140 of 2022

W.M.P.No.27428 of 2022 in

Writ Petition No.28140 of 2022

P.N.PRAKASH, J

and

 RMT. TEEKAA RAMAN  , J

[Made by P.N.PRAKASH, J]

Mr.A.Kumaraguru, learned Senior Advocate [ED], takes notice for the respondent.

  1. A case under the Foreign Exchange Management Act [in short “FEMA”] was registered against the petitioner company on the allegation that they had sent foreign exchange abroad in violation of FEMA Rules and investigation was taken up by the Enforcement Directorate. The Enforcement Directorate passed provisional orders of seizure of certain movable and immovable properties of the petitioner company, which were not confirmed by the Competent Authority acting u/s.37-A of FEMA, by orders dated 13.04.2022 and 25.07.2022. Challenging the orders of the Competent Authority, the Enforcement Directorate filed two writ petitions before this Court in W.P.Nos.13114 and 25098 of 2022 and this Court has granted interim stay of the orders dated 13.04.2022 and 25.07.2022 that was passed by the Competent Authority.
  2. It appears that the petitioner company was having its account with Axis Bank and overseas remittances were made through Axis Bank, which is an authorised dealer under the FEMA. On a complaint given by Axis Bank, the Central Crime Branch registered a case in CCB-I P.S.Crime No.161 of 2022 on 08.08.2022 against the petitioner company for the offences u/s.417 and 420 IPC. Since the FIR disclosed the commission of an offence u/s.420 IPC, which is a scheduled offence under the Prevention of Money Laundering Act, the Enforcement Directorate registered a case in ECIR/CEZO-II/26/2022 and has issued summons to the petitioner company u/s.50 of the PMLA, aggrieved by which, the present writ petition has been filed.
  3. Under normal circumstances, this Court would have dismissed the writ petition in limine by holding that it would not interdict such summons.

However, in this case, we carefully perused the FIR in CCB-I P.S.Crime No.161 of 2022, wherein, there is no allegation by the Axis Bank that they had suffered any loss in the transaction and had only alleged that the petitioner company had suppressed the information relating to FEMA enquiry in their application for making foreign remittances. That apart, a learned Single Judge in Crl.O.P.No.21536 of 2022 has passed an order dated 07.09.2022 directing the CCB-I not to file final report in  CCB-I P.S.Crime No.161 of 2022. Superadded, the FIR does not even disclose anything about wrongful loss to the Axis Bank and wrongful gain to the accused in the transaction. The allegations in the FIR, even if is accepted as gospel truth, does not prima facie appear to have any scope for generating “proceeds of crime” at the cost of Axis Bank. It is the simple grievance of Axis Bank that, the petitioner company did not disclose to them that there is a FEMA case against them, in the application for making foreign remittance. However, as

P.N.PRAKASH, J and

 RMT. TEEKAA RAMAN  , J

gm pointed out by Mr.B.Kumar, learned Senior Counsel, the said application form does not have column in this regard.

  1. Prima facie, we find that no ‘proceeds of crime’ has been generated pursuant to the criminal activity alleged in CCB-I P.S.Crime No.161 of 2022. The petitioner has made out a prima facie case for grant of stay.

Accordingly, there shall be an order interim stay until further orders.

[PNP, J.]                 [TKR, J.]

                                                20.10.2022

   (2/2)

gm

W.M.P.No.27428 of 2022 in Writ Petition No.28140 of 2022

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