BENGALURU: The Karnataka High Court has quashed proceedings against MLC Shashil G Namoshi and two others under the Prevention of Money Laundering Act (PMLA) based on a private complaint. Justice Sunil Dutt Yadav passed the order, while allowing the petition filed by Shashil, Baburao and Dr Sampath Kumar Loya from Kalaburagi. They questioned the validity of the private complaint and the order passed by the III Additional Sessions Court, Mangaluru, on May 24, 2016, to take cognisance of the offences.
“Taking note that the present complaint is made by a private individual, the question of court taking cognisance and issuing process to the accused when the offence involved is one under Section 3 and punishable under Section 4 of the PMLA, is impermissible. On this sole ground itself, the order dated May 24, 2016 is set aside. Further, the entirety of the proceedings before the trial court is set aside. The trial court cannot take notice of a complaint by private persons without a complaint being presented through the authorities as specified in proviso to Section 45(1) of the Act,” the court said.
It said that once the specific procedure prescribed under the Act provides for taking cognisance only upon a complaint in writing made by a specified person, the question of falling back upon the procedure under the CrPC to entertain a private complaint as envisaged under Section 190(1)(a) of CrPC does not arise, in light of the rider to applicability of CrPC in Section 46. The proceedings were initiated based on a private complaint filed before the sessions court under Section 200 CrPC read with Section 45(1) of the PMLA for an offence under Section 3 and punishable under Section 4 of Act.