Case Note & Summary
The Deputy Director of the Directorate of Enforcement (petitioner) filed a petition under Section 538 of the Bharatiya Nagarik Suraksha Sanhita, 2023 read with Section 482 of the Criminal Procedure Code, 1973, challenging an order dated 18.03.2025 passed by the XIII Additional Special Court for CBI Cases, Chennai. The impugned order had rejected the petitioner's application to transfer C.C.No.19 of 2014 (a PMLA case) pending before the Special Court for CBI cases to the Principal Sessions Judge, Chennai (Special Court for PMLA cases) under Section 44(1)(c) of the Prevention of Money-Laundering Act, 2002 (PMLA). The respondents are Dr. P. Vijayan and V. Anitha, who are facing trial before the Principal Sessions Court, Special Court for PMLA cases, for the offence under Section 3 of the PMLA punishable under Section 4. The first respondent is the Deputy Superintendent of Police, CBI, which had registered the predicate offence. The petitioner argued that the PMLA case should be tried by the PMLA Special Court to avoid multiplicity of proceedings and ensure effective trial, as the respondents were already facing trial before that court. The respondents opposed the transfer, contending that the Special Court for CBI cases had jurisdiction and that the transfer would cause inconvenience. The High Court analyzed the provisions of Section 44(1)(c) of the PMLA, which empowers the High Court to transfer cases from one Special Court to another. The court noted that the PMLA Special Court has exclusive jurisdiction over money laundering offences, and the trial of the PMLA case before the CBI Special Court would lead to parallel proceedings. The court held that the impugned order was erroneous and set it aside, allowing the transfer of C.C.No.19 of 2014 from the XIII Additional Special Court for CBI Cases, Chennai to the Principal Sessions Judge, Chennai (Special Court for PMLA cases). The court directed the transfer to be completed within four weeks.
Headnote
A) Criminal Procedure - Transfer of PMLA Case - Section 44(1)(c) of Prevention of Money-Laundering Act, 2002 - The High Court has power under Section 44(1)(c) of PMLA to transfer a case from one Special Court to another, and the power under Section 538 of BNSS read with Section 482 CrPC is also available. The court held that the PMLA Special Court is the appropriate forum for trial of PMLA offences, and the transfer is necessary to avoid multiplicity of proceedings and ensure effective trial. (Paras 1-19) B) Criminal Procedure - Concurrent Jurisdiction - Section 44(1)(c) of PMLA, 2002 - The Special Court for CBI cases and the PMLA Special Court both have jurisdiction over the scheduled offence, but the PMLA Special Court has exclusive jurisdiction over the money laundering offence. The court held that the trial of the PMLA case should be before the PMLA Special Court, and the transfer under Section 44(1)(c) is justified. (Paras 10-15) C) Criminal Procedure - Transfer of Case - Section 538 of BNSS, 2023 read with Section 482 CrPC, 1973 - The High Court can exercise its inherent powers to transfer a case to secure the ends of justice. The court held that the impugned order rejecting transfer was erroneous and set it aside. (Paras 16-19)
Issue of Consideration
Whether the High Court can transfer a PMLA case pending before a Special Court for CBI cases to the Principal Sessions Judge (Special Court for PMLA cases) under Section 44(1)(c) of the PMLA, and whether the impugned order rejecting such transfer was correct.
Final Decision
The High Court allowed the petition, set aside the impugned order dated 18.03.2025, and directed the transfer of C.C.No.19 of 2014 from the XIII Additional Special Court for CBI Cases, Chennai to the Principal Sessions Judge, Chennai (Special Court for PMLA cases) under Section 44(1)(c) of the PMLA. The transfer was directed to be completed within four weeks.
Law Points
- Section 44(1)(c) of PMLA
- 2002 confers power on the High Court to transfer PMLA cases from one Special Court to another
- Section 538 of BNSS read with Section 482 CrPC can be invoked for transfer
- PMLA Special Court has exclusive jurisdiction over scheduled offences only when they are part of the same transaction as money laundering
- Special Court under PMLA is not subordinate to Special Court for CBI cases
