The Karnataka High Court in the case Vihaan Direct Selling India Private Limited And The Assistant Director, Directorate of Enforcement observed and has held that the court cannot interfere with criminal proceedings which is being initiated by the Directorate of Enforcement in Mumbai merely on the ground merely on the accused is staying and is operating a bank account in Karnataka.
The Single judge bench headed by Justice K Natarajan in the case observed and has dismissed the plea filed by Vihaan Direct Selling India Private Limited which had approached the Court wherein seeking to quash the case which is being registered in 2013 by the Enforcement Directorate and for declaring that the search conducted under Section 17 of the Prevention of Money Laundering Act as illegal and unconstitutional.
The bench stated that the said court cannot interfere and pass the order with the action which is being taken by the respondent-ED in the case registered at Mumbai.
In the present case, the case has been registered by the ED upon the FIR registered by the Oshiwara Police Station, Mumbai in 2013 for various offences of Indian Penal Code, 1860 which includes Section 120B and Section 420 of the Indian Penal Code, 1860 which are the scheduled offences under the Prevention of Money Laundering Act, 2002.
Therefore, the ED then conducted a search and froze the bank account of the company and sent the seized amount and other materials to the Adjudicating Authority. Further, the bank accounts were in Bengaluru and Chennai.
