M.MALLA REDDY Vs. UNION OF INDIA

JUDGEMENT

(1.) This Writ Petition is filed assailing the action of respondent No.3 in issuing summons bearing No. PMLA/SUMMON/HYZO/ 2024/2633 in File No.ECIR/HYZO/26/22 dtd. 7/2/2024 to the petitioner under Sec. 50 (2) and (3) of Prevention of Money Laundering Act, 2002 (for short "PMLA Act"), calling upon him to attend before him, despite the case in S.C.No.16 of 2023 is pending on the file of learned Metropolitan Sessions Judge-cum- Special court under PMLA Act, 2002, at Nampally, Hyderabad, as illegal, arbitrary and violative of Article 14 and 21 of Constitution of India and in contravention with provisions of PMLA Act, and for other consequential reliefs.

(2.) The brief facts of the case that are necessary for disposal of the writ petition are stated under:

(3.) The petitioner claims to be Director of M/s. Farmax India Limited upto 23/11/2011 and thereafter he resigned from his directorship. It is stated that the petitioner herein is looking after sales and marketing division of the company. Basing on the FIR No.664/2013 dtd. 29/10/2013 registered on the file of Station House Officer, Dundigal Police Station, the respondent No.3 herein registered ECIR No.IHY/ZO/26/2022 on 5/5/2022. The FIR initially registered was transferred to Crime Investigation Department CID) and thereafter, it was referred to the Enforcement Directorate (ED). Initially, complaint was filed by one of the Director of the company and on the basis of said predicate offence, the respondent No.3 issued summons to the petitioners and other directors of the company. It is stated that Criminal Petition No.10076/2022 has been filed on the file of this Court seeking to quash the proceedings in ECIR/HYZO/26/22 and this Court has granted interim stay on 15/11/2022. In view of the stay granted by this Court, the proceedings against the Morthala Srinivasa Reddy/A.2 stalled. While the matter stood thus, the respondent No.3 herein proceeded to file a complaint under Ss. 44 and 45 of PMLA Act for the alleged offences under Ss. 3 r/w Sec. 4 r/w 70 (1) and (2) of the Act and said complaint was taken on record as SC No.16/2023 on the file of learned Metropolitan Sessions Judge-cum-Special Court under PMLA Act, Nampally, Hyderabad. It is also case of the petitioner, the respondents while invoking provisions of Sec. 37(A) (1) of Foreign Exchange Management Act, seized certain properties vide order dtd. 20/11/2023.