Sachin Narayan Vs Income-Tax Department (Karnataka High Court)
Prevention of Money Laundering Act, 2002 – Summons issued under provisions of Section 50(2) & (3) of PMLA, 2002 cannot be quashed in Writ proceedings.
Dismissing the petition, the Court held that, it is trite law that at the stage of showcase notice, charge sheet, summons or notice to appear, constitutional courts would not interfere so as to interject the proceedings and thereby prevent the authorities from proceeding.
Ordinarily, a writ petition would not lie against a show-cause notice for the reason that it does not give rise to any cause of action.
Summons issued under section 50(2) of the Act has nothing to do with the regulations as defined under the Regulatory Rules. The rules are referable only to proceedings for adjudication and not to pre-adjudication proceedings. In fact, section 50(2) does not refer to an accused at all. At the pre-adjudication stage, i.e., during investigation stage, the authorities are not required to state or reveal the nature of the material upon which they intend to rely for summoning a person for investigation. Accordingly, dismissing the writ petition, that summons clearly disclosed that they had been issued in exercise of power vested under section 50(2) and 50(3) of the Act.
There being no challenge to the Constitutional validity of these provisions and the jurisdiction of the authority not being in serious dispute, the writ petition on the ground of investigation being hit by article 20 of the Constitution of India could not be entertained at this stage.
CONCLUSION; please note that PMLA ,2002 Section 50(1) provides that Director shall for the purpose of Section 13 has same powers as vested in Civil Court under provisions of Civil Procedure Court ,1908 and provisions of Section 50(2) clearly state that, the Director, Additional Director, Joint Director, Deputy Director or Assistant Director shall have power to summon any person whose attendance he considers necessary whether to give evidence or to produce any records during the course of any investigation or proceeding under this Act.
50(3) provides that all the persons so summoned shall be bound to attend in person or through authorised agents, as such officer may direct, and shall be bound to state the truth upon any subject respecting which they are examined or make statements and produce such documents as may be required.
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