Special court for PML Act: HC bins plea on jurisdiction

The High Court has rejected a criminal petition challenging the proceedings under the Prevention of Money Laundering Act on the ground of jurisdiction. The petitioners claimed that they are residents of Mandya district and hence a special court in Bengaluru has no jurisdiction to entertain the complaint.

The Enforcement Directorate (ED) case against the petitioners was that they got sanctioned different loans illegally in connivance with the then manager of Syndicate Bank, Mandya branch, during 2006-2008. The scam was detected and a case was registered by the ED under the provisions of Prevention of Money Laundering Act, 2002 in 2013.

The contention of the petitioners before the High Court was that they were residing at Mandya. The alleged offence happened at Mandya district and therefore the court in Bengaluru has no jurisdiction to entertain the complaint. Special counsel for the ED P Prasanna Kumar argued that as per the notification, issued by the government in 2006, the Principal City Civil Court in Bengaluru has jurisdiction for several districts, including Mandya district. The special counsel also contended that the trial court has already framed the charges against the petitioners in the case on February 20, 2021 and subsequently the complainant has also been examined.

“It is important to note that the Government of India vide Gazette Notification dated 01.06.2006 issued under Section 43 (1) of the PML Act, 2002 and for Karnataka, the Principal City Civil and Sessions Judge, Bengaluru established as the Special Court for the offences committed in various Revenue Districts including Bengaluru, Tumakuru, Kolar, Mandya, Hassan etc. Therefore, the contention of the learned counsel for the petitioners stating that Principal City Civil Court, Bengaluru has no jurisdiction is not sustainable and the ground urged by the learned counsel for the petitioner is sustainable and hence, rejected,” Justice K Natarajan said.

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