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2022 (12) TMI 1198 - HC - Money LaunderingMoney laundering - loans were fraudulently obtained by KSBL from banks/Financial Institutions by declaring clients’ shares as its own shares - Direction to grant extension of time to the petitioners to prepare a reply to the show cause notice, for a further period of two months and consequently exclude two month period from the computation of 180 days under Section 5(3) of the Prevention of Money Laundering Act, 2002 - HELD THAT:- No doubt that the adjudicating process as envisaged under Section 8 of the Act is time-bound process. Timelines are mentioned therein. Therefore, in view of the said discussion, according to this Court, the petitioners are entitled to grant of extension of some reasonable time to submit reply to the show cause notice, dated 19.09.2022. According to this Court, two months time from today is reasonable. According to Sri Avinash Desai, learned counsel for the petitioners, the petitioners have to get information and submit explanation effectively. Unless and until the said defendants submit explanation, 1st respondent/ Adjudicating Authority will not be in a position to pass an order in terms of Section 8(3) of the Act. Therefore, no prejudice would be caused to 2nd respondent. For the purpose of computing the time period of 180 days, the period during which the proceedings were extended shall be excluded in terms of proviso 3 to Section 5 of the Act - It is relevant to note that this Court vide Common order dated 10.08.2022 in W.P.No.30753 of 2022 granted two months time to submit explanation to the show cause notice dated 22.04.2022 issued in respect of PAO therein. There is no challenge the said order and it attained finality. There is no allegation that petitioners did not comply with the said order. This court is also inclined to extend time to the petitioners - this Writ Petition is disposed of granting two months time from today to the petitioners to submit their explanation/reply to the show cause notice dated 19.09.2022.
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