JUDGEMENT OF THE HON’BLE SUPREME COURT OF INDIA IN THE CASE TITLED “UNION OF INDIA (UOI) VS. HASSAN ALI KHAN AND ANOTHER, (2011) 09 SC CK 0067” CONCERNING OFFENCES UNDER PREVENTION OF MONEY LAUNDERING ACT
Union of India (UOI) vs. Hassan Ali Khan and Another, (2011)
09 SC CK 0067
PARA NO. 3,5 & 7
3. The allegation against the Respondent No.1 and the other
accused is that they have committed an offence punishable u/s 4 of the
Prevention of Money Laundering Act, 2002, hereinafter referred to as ''the PML
Act''. The said case has been registered on the basis of a complaint filed by
the Deputy Director, Directorate of Enforcement, Ministry of Finance,
Department of Revenue, Government of India, on 8th January, 2007, on the basis
of Enforcement Case Information Report No.02/MZO/07 based on certain
information and documents received from the Income Tax Department. On the said
date, the Income Tax Department carried out a search in the premises owned
and/or possessed by the Respondent No.1 and a sum of Rs. 88,05,000/in cash was
found in his residence at Peddar Road, Mumbai, and was seized. A number of
imported watches and some jewellery were also found and seized during the
search.
5. Further, an investigation was conducted under the Foreign
Exchange Management Act, 1999, hereafter referred to as ''FEMA''. Show-cause
notices were issued to the Respondent No. 1 for alleged violation of Sections
3A and 4 of FEMA for dealing in and acquiring and holding foreign exchange to
the extent of US$ 80,004,53,000, equivalent to Rs. 36,000 crores approximately
in Indian currency, in his account with the Union Bank of Switzerland, AG,
Zurich, Switzerland.
7. Based on the aforesaid material, the Directorate of
Enforcement, Mumbai Zonal Office, arrested the Respondent No.1 on 7th March,
2011, and, thereafter, he was produced before the Special Judge, PMLA, Mumbai,
on 8th March, 2011, and was remanded in custody. Subsequently, by an order
dated 11th March, 2011, the Special Judge, PMLA, rejected the prayer made on
behalf of the Directorate of Enforcement for remand of the Respondent No.1 to
its custody and released him on bail. However, since a Public Interest
Litigation was pending in this Court in which the Directorate of Enforcement
was required to file a status report in respect of the investigations carried
out in connection with the case, the fact that the Respondent No.1 had been
released on bail was brought to the notice of this Court and this Court stayed
the operation of the bail order and authorized the detention of the Respondent
No.1 in custody, initially for a period of four days. The Union of India
thereupon filed SLP (Crl.) No. 2455 of 2011 and upon observing that the
material made available on record prima facie discloses the commission of an offence
by the Respondent No.1 punishable under the provisions of the PML Act, this
Court vide order dated 29th March, 2011, disposed of the appeal as well as the
SLP and set aside the order dated 11th March, 2011, of the Special Judge, PMLA,
Mumbai, and directed that the Respondent No.1 be taken into custody.
Thereafter, the Respondent No.1 was remanded into custody from time to time and
the complaint came to be filed on 6th May, 2011. A further prayer for bail was
thereafter made on behalf of the Respondent No.1 on 1st July, 2011, but the
same was dismissed by the Special Judge, PMLA, Mumbai, on the same day.
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