‘Repeated Use Of Template Paragraphs Impermissible’: Delhi High Court Warns PMLA Adjudicating Authority Of Action

The Delhi High Court had warned the Adjudicating Authority under Prevention of Money Laundering Act, 2002 (PMLA) to not use “disconcerting language” in its orders and said that repeated use of “template paragraphs” is not permissible.

Justice Prathiba M Singh directed the Appellate Tribunal under PMLA to ensure that the Adjudicating Authority abides by the principles of natural justice and the court’s observations in Dr. U.S. Awasthi v. Adjudicating Authority PMLA & Anr.

“The Appellate Tribunal, PMLA would take the above observations into consideration and pass appropriate directions,” the court said.

In Dr. U.S. Awasthi case, Justice Singh had taken note of the “disconcerting language” used in an order passed by the Adjudicating Authority and specially the expression “noise being caused.”

Dealing with a case where a similar order was passed, the court observed that repeated use of templated paragraphs, as if the principles of natural justice are mere rhetoric, is not permissible.

“The present order shall be treated as a warning to the concerned authority to not use such language as extracted below in its orders, failing which the Court would be constrained to direct action to be taken,” Justice Singh said.

The court was hearing a plea moved by one Kankipati Rajesh challenging an order passed by Adjudicating Authority under PMLA on March 06 dismissing his application for cross examining the witnesses, whose statements were relied upon by the Enforcement Directorate.

The court observed that the impugned order would be appealable to the Appellate Tribunal under PMLA and relegated Rajesh’s case to avail of the appellate remedy in accordance with law.

“The Petitioner is permitted to approach the Appellate Tribunal, PMLA within a period of one month. The period during which the present writ petition was pending shall be deductible from the period of limitation for filing of the appeal,” the court said.

Title: KANKIPATI RAJESH v. ADJUDICATING AUTHORITY, PREVENTION OF MONEY LAUNDERING ACT, 2002 & ORS.

Citation: 2023 LiveLaw (Del) 360

Click Here To Read Order