SOUTH INDIAN BANK LTD Vs. DIRECTORATE OF ENFORCEMENT

JUDGEMENT

(1.) Petitioner, though a de facto complainant, has approached this Court under sec. 482 of the Code of Criminal Procedure (for short 'Cr.P.C' ) seeking to quash the proceedings initiated by the Enforcement Directorate (for short 'ED') under the Prevention of Money Laundering Act, 2002.

(2.) Petitioner is a scheduled bank, which had initiated FIR.No.38/2019 of Crime Branch, Thrissur, alleging offences including Ss. 420 and 471 of the Indian Penal Code 1868 against respondents 2 to 4 and others. The aforesaid offences are scheduled offences under the Prevention of Money Laundering Act, 2002 (for short PML Act). While the crime was being investigated by the Crime Branch, pursuant to the FIR, the Enforcement Directorate stepped in and commenced their investigation after registering ECIR No.KCZO/05/2019. In the meantime, the Crime Branch completed the investigation and filed a final report referring the case as a civil matter. The said report was accepted by the Chief Judicial Magistrate, Thrissur as RC.No.73/2023 on 5/1/2024. Thus the predicate offence has ended in a closure of the investigation as no crime was committed by the accused.

(3.) The properties which are the subject matter of mortgage with the petitioner, continue to be under attachment as per the provisions of the PML Act, and hence they claim sufficient locus standi to seek the reliefs. In view of the acceptance of the final report by the learned Magistrate, petitioner contends that the Enforcement Directorate cannot continue with the proceedings and thus the petitioner, though a de facto complainant in the predicate offence, seeks to quash the proceedings.