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2013 (8) TMI 1025

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..... efforts made by way of investigation, the evidence collected during the investigation and find out as to whether the final report was justified or not. The complainant shall also get an opportunity to look into the report and submit a protest petition, if he desires. Dispose of this writ petition directing the Enforcement Directorate, in case of contingencies given above, to submit Final Form before the designated Court within 2 months from the date of knowledge of the same. - Criminal Misc. Writ Petition No. 4909 of 2010. - - - Dated:- 1-8-2013 - N.A. MOONIS, L.K. MOHAPATRA AND SUSHIL HARKAULI. JUDGEMENT (Delivered by Hon'ble L.K.Mohapatra, J.) The prayers in this writ application are for a direction to the Enforcement Directorate (the respondent no. 4) to take up the investigation of Crime Case No. 458/09 registered for commission of offences under Sections 420/467/471/120-B of the Indian Penal Code read with Sections 7/8/9/10/13(I)(e) of the Prevention of Corruption Act, 1988 (hereinafter referred to as 'the Act') and Sections 3/4 of the Prevention of Money-Laundering Act, 2002 (hereinafter referred to as 'the Money-Laundering Act') in poli .....

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..... ess was a deception and in the process of amalgamation, the companies in which Amar Singh had controlling shares were enriched by wealth of around 400 crores. Thus, he was in possession of wealth disproportionate to his known sources of income and misused his position by indulging in Money-Laundering business by conspiring with other Directors, officials and statutory authorities. Amar Singh filed Criminal Misc. Writ Petition No. 24225 of 2009 before this Court for quashing the above F.I.R. The present writ petition was filed by the complainant Shiv Kant Tripathi for the relief mentioned in the beginning of the judgement. Both the writ petitions were heard by a Division Bench of this Court. Criminal Misc. Writ Petition No. 24225 of 2009 filed by Amar Singh was dismissed and so far as the present writ petition is concerned, keeping it pending for monitoring the investigation, the following direction was issued. In the above perspective we are of the view that regard being had to the various materials on record and also considering the averments made in the writ petitions and also in counter and rejoinder affidavits, we are of the firm view that it is a pre-eminently fit case .....

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..... #39;scheduled offences' has been committed. We will assume that even if the police submits a final report, alleging that no scheduled offence has been committed, but the Magistrate does not accept the same and issues process, even then the directorate can initiate investigation into money -laundering allegations. In that view the investigation done by the directorate under the interim orders passed herein, even before a charge-sheet by the police regarding any scheduled offence having been committed, was premature. So far as the offences under the Money-Laundering Act are concerned, it was informed by the learned counsel appearing for the Enforcement Directorate that the investigation has been completed but on the basis of materials made available during investigation, the Directorate did not find any thing against Amar Singh to submit a charge sheet and therefore, the investigation has been closed but no report has been submitted in any Court. So far as the scheduled offences are concerned, Final Form having been submitted before the concerned Magistrate, this Court need not pass any further order as it is open for the Magistrate to either accept or differ with the repor .....

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..... investigation' has not been defined in the Money-Laundering Act but it has been defined in the Code. With reference to the said definition of the term 'investigation' appearing in the Code, it was contended on behalf of the Enforcement Directorate that the investigation as defined in the Code, only includes the proceedings for the purpose of collection of evidence conducted by the police officer and does not include submission of final report, which is provided under Section 173 of the Code. It is true that the term 'investigation' has not been defined in the Money-Laundering Act, but the said term has been defined under the Code, as quoted below: (h) investigation includes all the proceedings under this Code for the collection of evidence conducted by a police officer or by any person (other than a Magistrate) who is authorised by a Magistrate in this behalf; The question as to whether the term 'investigation' shall include submission of Final Form or not, has been set at rest by the Supreme Court in the case of H.N.Rishbud and another vs. State of Delhi reported in (A.I.R. 1955 SC 196). The relevant finding of the Supreme Court in paragrap .....

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..... erial is found in respect of the offence alleged under the said Act against an accused keeping the public, the complainant and most importantly the Court in dark regarding nature and extent of investigation and outcome thereof. Lack of judicial scrutiny, coupled with lack of transparency would confer too excessive a power/discretion upon the Director of Enforcement. Judicial scrutiny under Article 226 would also not be of any help when the petitioner has no access to the nature, manner and extent of investigation by the Directorate. We cannot overlook the fact that generally persons engaged in money laundering are likely to be rich and powerful. This should not be seen as doubting the personnel presently serving in the directorate, but then there would be others who would occupy these positions in future. For avoiding undesirable consequences it is open in statutory interpretation to read it down or read it wide. However, we are of the view that Section 65 of the Money-Laundering Act takes care of such a situation and the Enforcement Directorate is duty bound to submit final report or charge sheet, as the case may be, before the Court which is designated as Special Court by the .....

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