Disposed

FPA-PMLA-1708/BNG/2017 of Devidas Venkatesh Chandankar v. The Deputy Director Directorate of Enforcement, Bangalore

ATFP6 Jun 2024FPA-PMLA-1708/BNG/2017

Case brief

AI extract

What is this about?

Appeals against provisional attachment orders were disposed of. Since underlying PMLA proceedings were quashed by the High Court and the Special Court, attached properties were released. Liberty granted to revive appeals if quashing orders are set aside.

What did the court decide?

The appeals along with other pending applications were disposed of and properties were released from attachment.

FPA-PMLA-1708/BNG/2017 of Devidas Venkatesh Chandankar Vs. The… — Money Laundering | ATFP (2024)

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APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI

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1. MP-PMLA-1299/BNG/2024 (Direction) MP-PMLA-3281/BNG/2017 (Stay) MP-PMLA-3282/BNG/2017 (Exp) FPA-PMLA-1708/BNG/2017

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DevidasVenkateshChandankar … Appellant

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2. MP-PMLA-1298/BNG/2024 (Direction) MP-PMLA-2458/BNG/2016 (Stay) FPA-PMLA-1253/BNG/2016

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PrashanthPrabhakarChodankar … Appellant

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Versus

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The Deputy Director Directorate of Enforcement, Bangalore … Respondent

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Advocates/Authorized Representatives who appeared

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For the Appellant : Mr. CharudattaMahindrakar, Adv. For the Respondent : Mr. N. K. Matta, Adv.

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CORAM

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SHRI G. C. MISHRA : MEMBER

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ORDER

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06.06.2024

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These Appeals have been preferred against the Impugned Order dated 30.12.2015 passed by Ld. Adjudicating Authority, PMLA in Original Complaint (OC) bearing No.419/2015 in Provisional Attachment Order (PAO) bearing No.01/2015 in ECIR No.50/BZ/2009 dated 06.02.2015 praying for quashing of the aforesaid order dated 30.12.2015.

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2. During the course of pendency of the present Appeals, Appellants

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filed an Application bearing No. MP-PMLA-1299/BNG/2024 in Appeal

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FPA-PMLA-1708/BNG/2017 & FPA-PMLA1253/BNG/2016

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Page 1

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No. FPA-PMLA-1708/BNG/2017 & MP-PMLA-1298/BNG/2024 in Appeal No. FPA-PMLA-1253/BNG/2016 have been filed on dated 11.03.2024 for quashing of the impugned order on the ground that the appellants have been acquitted in predicate offence by Principal Senior Civil Judge and CJM, Belagavi, at Belagavi vide judgment dated 27.10.2022 in Crl. Case No. 4/2012 and on the basis of same the Hon’ble High Court of Karnataka, Bengaluru has quashed the entire proceedings in special case no. 126/2016 pending before the Court of Ld. III additional District and Session Judge and Special Judge under Prevention of Money Laundering Act, 2002 by allowing the Criminal Petition 6452/2023 on 26.02.2024 filed by the present appellants and thereafter the Ld. III Additional District and Sessions and Special Judge, D.K., Mangaluru, closed the special case No. 126/2016 instituted under PMLA, 2002 as quashed against the present appellants vide order dated 05.03.2024.

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3. The applications and the judgments passed by the Ld. Judges as well as the Hon’ble High Court are perused and the applications were heard. It appears from the papers that the criminal proceedings under PMLA, 2002 against the appellants has been closed as quashed by the Ld. III Additional District & Session Judge & Special Judge., D.K., Mangaluru, in Special Case No. 126/2016 on 05.03.2024 on the basis of the orders passed by Hon’ble High Court of Karnataka, Bengaluru dated 26.02.2024 in Crl. P. No.6452/2023. The relevant portion of the order passed by Ld. Special Judge in Special Case No. 126/2016 dated 05.03.2024 is reproduced below:

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FPA-PMLA-1708/BNG/2017 & FPA-PMLA1253/BNG/2016

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Page 2 of 5

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“Counsel Smt. JMM for Sri NMS for accused has advance the case on today’s board from 26.03.2024.

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Advancement application heard and allowed.

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LD. Special PP is present.

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Counsel for accused files memo stating that:

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“the proceedings in the above case were pleased to be quashed by the Hon’ble High Court of Karnataka, Bengaluru by its order dated 26.02.2024 in Crl. P. No. 6452/2023. The certified copy of the same is produced herewith for kind perusal of this Hon’ble Court.

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In view of the order of the Hon’ble High Court of Karnataka, Bengaluru, the above case may kindly be closed, in the interest of justice.”

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Further in the order of Hon’ble High Court of Karnataka, Bengaluru dated 26.02.2024 in Crl. P. No. 6452/2023 stated that:

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“Criminal Petition is allowed. The entire proceedings in

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Spl. C. No. 126/2016 pending before the Court of III Additional District and Sessions Judge and Special Court under Prevention of Money Laundering Act, 2002, D.K., Mangaluru, for the offences punishable under section 2 45(1) 3 and 4 of Prevention of Money Laundering Act, 2002, is hereby quashed. Liberty is reserved to the respondent to revive the proceedings in the event that the acquittal orders passed against the petitioners

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in the above referred cases are set aside.”

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In view of the memo filed and submissions made, this case is closed as quashed.

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FPA-PMLA-1708/BNG/2017 & FPA-PMLA1253/BNG/2016

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Page 3 of 5

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4. During the course of hearing, it was submitted from the side of the Respondent ED that the order dated 05.03.2024 passed by the Ld. Special Judge under PMLA is at the stage of opinion. It was further pleaded that in the event the applications are allowed then liberty may be granted to the Respondent ED to revive the present appeals if orders passed by the Hon’ble High Court and the Special Court (under PMLA) is/ are set aside.

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5. I haveconsidered the submissions made from both the sides and also perused the materials available on record. It is an undisputed fact that the proceedings in special case No. 126/2016 pending before the court of III Additional District and Sessions Judge and Special Court under Prevention of Money Laundering Act, 2002, D.K., Mangaluru, for the offences punishable u/sections 45 r/w 3 &4 of Prevention of Money Laundering Act, 2002, has been quashed by Hon’ble High Court of Karnataka at Bengaluru vide its order dated 26.02.2024 in Criminal Petition No. 6452/2023 relying on the judgment passed by the Hon’ble Supreme Court in the matter of Vijay MadanlalChaudhary&Ors. V. Union of India &Ors. - 2022 SCC online SC 929 and ParvathiKollur and Anr. Vs. State by Directorate of Enforcement- 2022 SCC online SC 1975 and on the basis of the aforesaid orders of Hon’ble High Court, the Ld. Special Court under PMLA,2002 has closed as quashed the Special Case No. 126/2016 pending against the present appellants. There is nothing on record that any other proceedings under PMLA,2002 is pending against these appellants concerning the properties involved in the present appeals.

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FPA-PMLA-1708/BNG/2017 & FPA-PMLA1253/BNG/2016

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Page 4 of 5

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6. Aforesaid being the facts, it appears that, there is no other criminal proceedings under PMLA, 2002 nor any document is produced regarding reversal of the orders dated 26.02.2024 passed by Hon’ble High Court of Karnataka, Bengaluru (supra) and/or the orders dated 05.03.2024 passed by Ld. III Additional District and Sessions Judge and Special Judge, Mangaluru (supra).

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7. In the light of above, these appeals along with the application bearing Nos. MP-PMLA-1299/BNG/2024 & MP-PMLA1298/BNG/2024 and other pending applications are disposed of and the properties involved herein are released from attachment. However, liberty is granted to the Respondent ED to approach this Tribunal for revival of these Appeals, in the event the aforesaid orders of Hon’ble High Court of Karnataka, Bengaluru and/or of the Court of Ld. III, Additional District and Sessions Judge and Special Judge, Mangaluru under PMLA, 2002, are set aside.

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It may be noted here that I have not gone into the merit of the Appeal.

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Order is pronounced in Open Court.

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In the facts and circumstances there is no order as to costs.

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(G. C. Mishra) Member

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New Delhi 06th,June, 2024 ‘ST’

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FPA-PMLA-1708/BNG/2017 & FPA-PMLA1253/BNG/2016