Joseph Massey & Ors vs Union Of India on 11 May, 2016

W.P.(C) No.199/2016 Page 1 of 13
2. It is the case of the petitioners (i) that the respondent which is a

statutory body enacted under the PMLA, vide order dated 4th November,

2015 held the National Spot Exchange Limited (NSEL) to be guilty of

failing in several obligations under the PMLA and imposed a total fine of

Rs.1,66,00,000/- on NSEL and directed NSEL to register itself as a reporting

entity under the PMLA; (ii) that purportedly in pursuance to the aforesaid

order, impugned show cause notices were issued to the petitioners; (iii) that

the petitioners worked as non-executive directors of NSEL and notices

issued to them are in disregard of law and malicious and by way of a roving

and fishing inquiry; (iv) that the respondent in the show cause notices also

has not stated any basis for implicating the petitioners and do not disclose

the material on the basis of which the petitioners are treated as “in charge”

and “responsible” for the business of NSEL and the notices do not mention

the exact role or specific involvement of the petitioners with regard to the

contravention/violation; (v) that PMLA is a draconian legislation and

issuance even of a show cause notice thereunder has bearing on the dignity

and reputation of the noticee; (vi) moreover, since the notices do not disclose

the jurisdiction of the respondent to issue notice to the petitioners, the

petitioners ought not to be compelled to respond thereto; and, (vii) reliance

W.P.(C) No.199/2016 Page 2 of 13
in the petition itself is placed on Gorkha Security Services Vs. Govt. (NCT

of Delhi) (2014) 9 SCC 105 and CCE Vs. Champdany Industries Ltd.

(2009) 9 SCC 466.

Source: Indian Kanoon

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