The Rajasthan High Court has held that the Director or Additional Director can issue summons on the person under section Prevention of Money-Laundering Act, 2002.
The petitioner challenged the summons dated 31.08.2022 issued by the Assistant Director, PMLA, Directorate of Enforcement, Ministry of Finance, Government of India, Jaipur under the provisions of the Prevention of Money-Laundering Act, 2002 (“the Act of 2002”).
Mr. Saraswat, counsel for the petitioner argued that the impugned summons (Annexure-3) issued by respondent No.2 is per se illegal and contrary to the provisions of Section 50 of the Act of 2002 and the Prevention of Money-Laundering Rules, 2005 (‘the Rules of 2005).
It was argued that Rule 11 stipulates that summons must be in the format prescribed in Form V and contain a schedule or the reason for which the notice has been called and the list of documents to be produced, whereas the impugned summons does not conform to the mandatory provisions and liable to be quashed.
On perusal of the impugned summons dated 31.08.2022, it reveals that the petitioner has been asked to appear before the Investigating Officer on 15.09.2022. It was observed that Sub Section (1) (b) & (2) of Section 50 of the Act of 2002 states that it is wide enough to authorize and empower the Director or the Additional Director to issue a summons to a person.
Justice Dinesh Mehta observed that the mere fact that the reply has been filed and the requisite documents as required in the first summons have been furnished, does not absolve the petitioner of his statutory obligation to honour the summons.
Further held that “if respondent No.2 does not require the production of any document or he proposes to examine the petitioner on oath the schedule or list of documents becomes redundant and thus, in such contingencies, ‘schedule part’ of Form V can be omitted. ”The bench disposed of the petition.
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