Delhi High Court Cautions PMLA Adjudicating Authority About Passing ‘Templated Orders’

The Delhi High Court has cautioned the Adjudicating Authority under Prevention of Money Laundering Act, 2002 (PMLA) about passing “templated orders” and said that using “identical templated paragraphs” must be avoided.

“Use of identical templated paragraphs could reflect as non-application of mind by the Authority concerned and hence ought to be avoided. The Adjudicating Authority is cautioned about passing such templated orders,” Justice Prathiba M Singh said.

The court was hearing a plea moved by State Bank of India challenging an attachment order passed by Adjudicating Authority (PMLA) dated December 22, 2021.

It was submitted by the bank that its case was not even considered by the Adjudicating Authority (PMLA) despite filing a detailed reply and explaining its position along with documents and relevant decisions.

Advocate Chandrachur Bhattacharyya appearing for the petitioner bank submitted that the Adjudicating Authority (PMLA) was “passing template cut-paste orders”. A compilation of similar orders passed by the Adjudicating Authority was shown to the court.

Perusing the orders, Justice Singh observed that the Adjudicating Authority was using identical paragraphs in several orders at least in respect of portions relating to compliance under sections 5(1) and 8(1) of PMLA, 2002.

“The above position shall be brought to the notice of the Adjudicating Authority by ld. Counsel appearing for the Enforcement Directorate,” the court said while cautioning the Adjudicating Authority.

Noting that the order under challenge was an Attachment Order appealable to the Appellate Tribunal (PMLA), the court relegated the petitioner bank to the Appellate Tribunal to avail of the appellate remedies.

“The appeal of the Petitioner shall now be listed and taken up by the Appellate Tribunal, for adjudication in accordance with law. All contentions of the parties are left open,” the court said.

Title: STATE BANK OF INDIA v. THE DEPUTY DIRECTOR ,ENFORCEMENT DIRECTORATE

Citation: 2023 LiveLaw (Del) 268

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