A Division Bench of the Delhi High Court comprising Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad recently remanded a Prevention of Money Laundering Act (PMLA) letter patent appeal by the Directorate of Enforcement (ED) to the Appellate Authority for adjudication on the merits of the matter.
The appellant, Directorate of Enforcement is investigating a number of Non-Banking Financial Companies (NBFCs) and Fintech Companies under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA). In exercise of the powers conferred under the PMLA, the appellant seized an amount of Rs.106,93,84,385/- vide seizure order [later corrected as Rs.87,84,26,805/-] and approximately Rs.51,22,88,087/- under Section 37A(1) of Foreign Exchange Management Act, 1999 (FEMA).
After a series of Writ and Special Leave Petitions (SLPs) by the respondents, an amount of Rs.15,35,45,317/- and Rs.25,00,00,000/- was directed to be released from the ED.
By a Letters Patent Appeal, the release of Rs.25,00,00,000/- was challenged by the ED. The matter was remanded to the Single Bench for an early hearing. It was clarified by the Delhi HC that the order was passed by this Court requesting the learned Single Judge to decide the matter on merits only because at the relevant point of time, the Tribunal was not functional.
It was brought to the notice of the Single Bench that the tribunal became functional within the set hearing date. The matter was still taken up for hearing by the Single Bench.
It was observed by the division bench that, “there is an equally efficacious remedy available under Section 26 of the PMLA and the High Court is an Appellate Authority above the Appellate Authority by virtue of Section 42 of the PMLA. Hence as the Appellate Authority is very much functional, the matter deserves to be heard by the Appellate Authority only” and requested the Appellate Tribunal for PMLA (AT PMLA) to hear the matter at an early date.
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