Case Note & Summary
The Directorate of Enforcement (ED) filed a criminal writ petition challenging an order dated 20.02.2025 passed by the Principal District and Sessions Judge, Nagpur, in Criminal Misc. Application No.21/2025. The impugned order transferred Criminal Case No.1/2023 from the Court of District Judge-2 and Additional Sessions Judge, Nagpur, to the Court of District Judge-1 and Additional Sessions Judge, Nagpur. The ED contended that it was not made a party to the transfer application filed by the accused, Tapas Nandulal Ghosh, and was not heard before the order was passed. The criminal case arose out of Crime No.505/2020 registered at Sitabuldi Police Station, Nagpur, against the accused under Sections 409, 420, 467, 468, 470, and 471 read with 34 of the Indian Penal Code (IPC). The allegations involved the accused, along with his wife, conspiring to siphon Rs.1,74,33,961/- from his employer through fraudulent transactions. Due to the involvement of scheduled offences under the Prevention of Money Laundering Act, 2002 (PMLA), the ED took up the matter on 10.12.2020 and initiated investigation. The ED argued that as the prosecuting agency in the PMLA case, it was a necessary party to the transfer application and ought to have been heard. The High Court held that the transfer order was passed without notice to the ED, violating principles of natural justice. Consequently, the court allowed the petition, set aside the impugned order, and directed the trial court to decide the transfer application afresh after hearing all parties, including the ED.
Headnote
A) Criminal Procedure - Transfer of Cases - Natural Justice - Directorate of Enforcement (ED) - The ED, as the prosecuting agency in a PMLA case, is a necessary party to any transfer application. The order transferring Criminal Case No.1/2023 from the Court of District Judge-2 to District Judge-1, passed without notice to the ED, violates principles of natural justice and is liable to be set aside. (Paras 1-5) B) Prevention of Money Laundering Act, 2002 - Scheduled Offences - PMLA Proceedings - The ED initiated investigation under PMLA based on scheduled offences under IPC (Sections 409, 420, 467, 468, 470, 471 read with 34) involving siphoning of Rs.1,74,33,961/-. The transfer of the criminal case without hearing the ED is unsustainable. (Paras 2-5)
Issue of Consideration
Whether the order transferring a criminal case under PMLA from one court to another, passed without notice to the Directorate of Enforcement (the prosecuting agency), is sustainable in law.
Final Decision
The petition is allowed. The impugned order dated 20.02.2025 passed by the learned Principal District and Sessions Judge, Nagpur, in Criminal Misc. Application No.21/2025 is quashed and set aside. The matter is remitted back to the trial court to decide the transfer application afresh after hearing all parties, including the ED.
Law Points
- Natural justice
- Right to be heard
- Transfer of criminal cases
- PMLA proceedings
- Necessary party
