Ham Sabhi Welfare Society & Ors Vs Union of India & Ors (Calcutta High Court)
In Ham Sabhi Welfare Society & Ors Vs Union of India & Ors, the Calcutta High Court examined an application under the Prevention of Money Laundering Act, 2002 (PMLA) arising out of alleged large-scale financial irregularities involving the Prayag Group of Companies. The matter concerned alleged acceptance of repayable deposits in violation of the Banking Regulation Act, 1949 and other laws, resulting in substantial losses to depositors.
The Enforcement Directorate (ED), appearing as respondent no. 7, placed before the Court that the Central Bureau of Investigation (CBI) had registered an FIR and filed charge-sheets against key directors of the Prayag Group under various provisions of the Indian Penal Code, including offences that are scheduled under the PMLA. Following this, the ED registered an ECIR and conducted investigations into alleged money laundering. According to the ED, investigations revealed continued unauthorised control and misuse of company properties by directors, destruction of financial records, and diversion of unlawful profits, even though a One-Man Committee headed by a retired High Court judge had been constituted to oversee the affairs of the group. Searches and arrests were carried out under the PMLA.
