Delhi HC Cautions PMLA Against Passing Orders With Identical Templated Paragraphs

The Delhi High Court bench comprising Justice Prathiba M. Singh recently cautioned the Adjudicating Authority, PMLA against passing orders with identical templated paragraphs. The bench observed that the use of identical templated paragraphs could reflect as non- application of mind by the authority concerned and hence ought to be avoided.

In the matter at hand the State Bank of India is the petitioner and sought to set aside the order of PMLA. The petitioner has put forth that its case has not even been considered by PMLA despite filing a detailed reply and explaining it’s position along with its documents and decisions relied upon. The petitioner further submitted that the adjudicating authority (PMLA) has passed template cut-paste orders and the same has been demonstrated by the counsel on behalf of the petitioner through a compilation of similar orders passed by the authority.

The court took a look at the compilation and observed that at least in respect of portions of the orders relating to sections 5(1) and 8(1) of PMLA,2002  the authority has been using identical paragraphs in several orders.

The high court observed that the use of identical templated paragraphs could reflect as non- application of mind by the authority concerned and hence should be avoided. 

In respect of the appeal, the court observed that the petitioner has preferred the appeal before the appellate tribunal (PMLA) at the relevant point of time but the tribunal was not duly constituted then and hence this writ petition was filed.

In the light of the fact that the appellate tribunal has now been set up the high court said that the appeal of petitioner shall now be listed and taken up by the same.

CASE: STATE BANK OF INDIA V. THE DEPUTY DIRECTOR, ENFORCEMENT DIRECTORATE

W.R. (C). 5744/2022