Allowed

Raj Kumar Aravinth v. The State of Tamil Nadu

Madras HC18 Dec 2024CRL OP(MD)/16861/2024

Case brief

AI extract

What is this about?

The Madurai Bench of the Madras High Court disposed of a Criminal Original Petition seeking conversion of attached bitcoins into Indian currency. The Court permitted the conversion process and directed that the net proceeds, after tax deduction, be invested in a Fixed Deposit within six weeks.

What did the court decide?

Directing the conversion of attached bitcoins to Indian currency and investment of the net proceeds in a Fixed Deposit within six weeks.

Raj Kumar Aravinth Vs The State of Tamil Nadu — Narcotics (NDPS) | Madras HC (2024)

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Crl.O.P.(MD)No.16861 of 2024

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 18.12.2024

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CORAM

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THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN and THE HONOURABLE MS.JUSTICE R.POORNIMA

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Crl.O.P.(MD)No.16861 of 2024

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1.Raj Kumar Aravinth

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2.S.Bharath Raj

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3.Gopalakrishnan ... Petitioners / Accused 2 to 4

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Vs.

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1.The Assistant Director (PMLA) Directorate Enforcement, Government of India, Madurai.

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2.The Deputy Director, Directorate of Enforcement, Madurai Sub Zonal Office, Madurai.

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3.The District Revenue Official, Competent Authority, under TANPID Act, Tirunelveli. ... Respondents / Complainants (R3 is Impleaded as Per Order of the Court District 04.12.2024 in Crl.Mp(MD). 12947 of 2024)

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PRAYER::

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Crl.O.P.(MD)No.16861 of 2024

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PRAYER:: Criminal Original Petition filed under Section 528 of BNSS, 2023 under Section 482 of Criminal Procedure Code, to direct the respondent to convert the bitcoins numbering 8.2177 seized by the respondent vide ECIR No.ECIR/MDSZO/24/2021, dated 15.12.2021 in C.C.No.1 of 2023 on the file of the Principal Sessions Judge, Madurai (Special Court constituted under Section 43(1) of the Prevention of Money Laundering Act, 2002 to the Indian Currency).

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For Petitioners : Mr.G.Prabhu Rajadurai For Respondent : Mr.A.R.L.Sundaresan Additional Solicitor General of India for Mr.K.Govindarajan Deputy Solicitor General of India

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JUDGMENT

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(Judgment of the court was delivered by G.R.Swaminathan, J.)

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Heard both sides.

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2.The petitioners are facing prosecution for the offences under the TNPID Act and also under Section 420 of IPC. The Enforcement Directorate also registered ECIR No.MDSZO/24/2021 against the petitioners herein. After the complaint was lodged under Section 44 & 45 of PMLA before the Special Court, cognizance was taken in C.C.No.1 of 2023. The bitcoins possessed by the petitioners herein were

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Crl.O.P.(MD)No.16861 of 2024

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attached by the Enforcement Directorate under Section 8 of PMLA, 2002. All that the petitioners now seek is the conversion of the crypto currency into regular currency. With the aforesaid prayer, the present criminal original petition came to be filed.

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3.The learned Additional Solicitor General appearing for Enforcement Directorate submitted that the Enforcement Directorate may not have any objection. The following memo was also filed by them.

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“1. The respondent submits that the bitcoins attached u/8 17(1)(A) of PMLA may be converted into Indian rupees.

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After conversion into Indian rupees the money realised shall be invested in the form of Fixed Deposit in any nationalized bank as mandated under Rule 4(3) of The Prevention of Money-Laundering (Taking Possessing) of Attached or Frozen Properties Confirmed by The Adjudicating Authority) Rules, 2013 in the name of the respondent department, i.e., The Deputy Director, Directorate of Enforcement, Madurai Sub-Zonal Office, Madurai.

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The Petitioners shall extend full cooperation with the Enforcement Directorate for the above process.

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Crl.O.P.(MD)No.16861 of 2024

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The bitcoins which are now in ED Wallet with WazirX exchange

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will be transferred to another crypto currency exchange and converted into Indian currencies and the proceeds will be invested in a Fixed Deposit in a nationalized bank as stated herein above.

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Out of the proceeds of the bitcoins, taxes if any, shall be borne by

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the petitioners and the net amount, after payment of taxes, will be invested in the form of Fixed Deposit.

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The above process will take an outer limit of six weeks from the

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date of order that may be passed by this Court.”

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The petitioners have also filed an affidavit stating that after conversion of the bitcoins to Indian currency, they can be kept under attachment by way of fixed deposit.

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Taking note of the submission made by either side, this criminal original

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petition is disposed of with the following directions:-

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(I) The petitioners are permitted to go to the office of the second respondent on

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(*)03.02.2025 at 11.30 A.M.

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Crl.O.P.(MD)No.16861 of 2024

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(II) It is stated that the bitcoins are presently under attachment in ED wallet with Wazirx exchange. The petitioners are permitted to give appropriate instructions so as to facilitate and enable the conversion of the crypto currency to regular Indian currency. The second respondent will do everything needful so as to effect the aforesaid conversion. Once the conversion is effected, the entire amount will be kept in a fixed deposit. The converted amount minus tax deducted will be invested in the form of a fixed deposit in any nationalized bank.

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(III) The entire exercise shall be completed within a period of six weeks from the date of receipt of a copy of this order.

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The criminal original petition is disposed of accordingly. No costs.

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Sd/-

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18.12.2024

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(*)Corrected as per the order of this court dated 28.01.2025 made in CRL OP(MD).No.16861 of 2024.

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Sd/-

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Assistant Registrar(CS I)

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// True Copy //

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/01/2025 Sub Assistant Registrar( )

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Crl.O.P.(MD)No.16861 of 2024

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rmi

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To:1.The Assistant Director (PMLA) Directorate Enforcement, Government of India, Madurai. 2.The Deputy Director, Directorate of Enforcement, Madurai Sub Zonal Office, Madurai. 3.The District Revenue Official, Competent Authority, under TANPID Act, Tirunelveli.

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+1 CC to M/s.G.PRABHU RAJADURAI, Advocate ( SR-75833[F] dated 20/12/2024 )

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Crl.O.P.(MD)No.16861 of 2024

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18.12.2024

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ES(21/01/2025) 6 P /5C MK(29/01/2025) 6 P /5C

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Madurai Bench of Madras High Court is issuing certified copies in this format from 17.07.2023.

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