Lift stay on PMLA proceedings against Virbhadra's children: ED

The Enforcement Directorate (ED) today urged the Delhi High Court to vacate its order staying proceedings against Himachal Pradesh Chief Minister Virbhadra Singh's two children in a money laundering case.
The submission was made before a bench of Chief Justice G Rohini and Justice Sangita Dhingra Sehgal by ED which said that the "action" by them was "well within confines of the Prevention of Money Laundering Act (PMLA)".
"They (ED) have registered Enforcement Case Information Report (ECIR) on the basis of an FIR registered by the CBI, as per law. The petitioners (Virbhadra Singh's two children) name did not figure in the FIR and hence was not mentioned in ECIR.

"...The schemes of the Act, as it now operated, was directed not only against the persons and judicial entities which are prosecuted for scheduled offence by various agencies like CBI, Customs, SEBI etc, but also operates qua persons who conceal, possess, acquire, use and project or claim proceeds of crime," Additional Solicitor General Sanjay Jain, who appeared for ED, claimed in the affidavit.
The agency further submitted that all of their "actions and investigation have been as per law and as prescribed by the PMLA".
On April 26 the high court had said that ED's provisional order of attaching some assets of Singh's two children in a money laundering case would continue but all subsequent proceedings against them would remain stayed.

The interim order had come on a plea filed by Virbhadra's daughter Aparajita Kumari and son Vikramaditya Singh against March 23 provisional attachment order passed by ED.

All four petitioners have challenged the recently amended
second proviso of section 5(1) of PMLA, saying it was unconstitutional as it was contradictory to the scheme of the Act and violated the Constitution.
The second proviso of section 5(1) of PMLA provides that any property of a person may be attached if ED's officer concerned has reasons to believe, on the basis of material in his possession, that if such property allegedly involved in money-laundering was not attached immediately, it was likely to frustrate any proceeding under the Act.

On this, the bench had said it requires consideration as it involves various questions of law.
Singh and his family members have sought stay on March 23 provisional attachment order of ED, saying it has "exceeded its jurisdiction".
ED, in its affidavit, sought dismissal of the plea, saying the "purpose of attachment under the PMLA, 2002, needs to be seen. All attached properties have been found to be prima facie involved in the offence of money laundering".
The petitioners claimed they were not named as accused in the ED's ECIR filed in the case and the March 23 order was passed but no scheduled offence has been alleged against them.

ED has provisionally attached assets worth Rs 15,85,639 belonging to Aparajita and Rs 62,86,747 of Vikramaditya, their joint petition said and added this order was passed without them being named in ECIR of October 27, 2015 lodged against Singh and others under the PMLA.
The agency has attached assets worth nearly Rs 5.80 crore belonging to Pratibha Singh and Rs 1.34 crore of Virbhadra Singh, their joint petition said.
The Chief Minster and his wife, in their plea, urged the court to quash ECIR of October 27, 2015, lodged under PMLA.