Supreme Court Halts PMLA Judgement Until CBI Charges Framed
The Supreme Court of India has instructed a Special Court under the Prevention of Money Laundering Act (PMLA) to delay its judgement until charges are framed in a related Central Bureau of Investigation (CBI) case. The directive was issued by Justice Bela M Trivedi and Justice Satish Chandra Sharma. The case involves a director of a Hong Kong-based company, with allegations of fraudulent bank accounts and foreign exchange transactions amounting to Rs 450 Crores.
Background of the Case
In 2017, CBI Chennai registered an FIR against 19 Indian entities and unknown public officials, alleging fraudulent activities in Punjab National Bank, Chennai. The Enforcement Directorate (ED) also registered a case for the same transactions. The petitioner, represented by advocates Gaurav Gupta and Deepanshu Choithani, argued that despite not being named in the initial FIR, charges were framed against him in the PMLA Court.
Legal Arguments
The petitioner contended that the ongoing CBI investigation has not resulted in a chargesheet, creating a potential conflict if the PMLA trial concludes first. The petitioner also argued that the High Court misapplied the Supreme Court’s principle regarding Section 24 of PMLA, which places a reverse burden of proof on the accused. The petitioner claimed that there is no evidence linking the foreign exchange to criminal activity, suggesting a possible violation of FEMA instead.
Doubts Revealed
Supreme Court -: The Supreme Court is the highest court in India. It makes important decisions on legal matters and ensures that laws are followed correctly.
PMLA -: PMLA stands for Prevention of Money Laundering Act. It is a law in India that helps prevent and control money laundering, which is hiding illegal money to make it look legal.
CBI -: CBI stands for Central Bureau of Investigation. It is India’s main investigative agency that looks into serious crimes like corruption and fraud.
Charges framed -: When charges are framed, it means that the court has officially stated what crimes the accused person is being charged with. This is an important step in a legal case.
Bank Fraud Case -: A bank fraud case involves illegal activities where someone tries to take money from a bank by cheating or lying. In this case, it involves a company director and Punjab National Bank.
Hong Kong-based company -: A Hong Kong-based company is a business that is registered and operates from Hong Kong, which is a special administrative region of China.
Punjab National Bank -: Punjab National Bank is one of the largest banks in India. It provides banking services like savings accounts, loans, and more to people and businesses.
Chargesheet -: A chargesheet is a document prepared by the police or investigation agency that lists the charges against an accused person. It is submitted to the court to start a trial.