Delhi HC Bashes PMLA Adjudicating Authority Against Use Of “Disconcerting Language” In Orders

The Delhi High Court recently bashed the Adjudicating Authority under the Prevention of Money Laundering Act (PMLA) against using “templated paragraphs” and “disconcerting language” in its orders.

A single bench of Justice Prathiba M Singh ruled that if the Authority used such language, the Court would be forced to direct that action be taken against it. “Repeated use of templated paragraphs, as though 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,” the order reads.

The Court made these stern remarks while noting that the Authority had failed to consider the fact that the use of such disturbing language had been frowned upon by the High Court in the case of Dr US Awasthi v. Adjucating Authority PMLA & Anr.

The single bench was dealing with a plea challenging an order dated March 6, 2023 issued by the Adjudicating Authority in which the petitioner’s application for right to cross-examine witnesses had been rejected.

Counsel for the petitioner told the Court that the Authority used the same language that was condemned in Dr US Awasthi’s judgment.

In its order, the Adjudicating Authority stated, in reference to the petitioner’s claim of violation of natural justice principles, that “it is always open to the accused of the alleged offenders to make more noise about the so-called violation of natural justice principles.”

According to the Authority, “such noise can be heard quite frequently in these type of matters with a view to dragging the proceedings and stifling the efforts of the authorities concerned to pin down the offenders to the crime in furtherance of the provisions of the Act.”

While taking a dim view of the language used in the order, the Court said that it would be appealable before the Appellate Tribunal, PMLA.