WP/28716/2025 of Abdul Rahman Sharfan Vs Union of India on 12 February 2026

1. Abdul Rahman Sharfan, S/o. M A Salam Sharfan, Agerl about 50 years, Occ. Business, R/o. H. No.'17-3-381/6, lmlibun, yakutpura,"H,r lerabad _ SOO OZS. --

2. lvlohammed Abdul Shukoor, S/o. Late M A W;heed tged aboui 6S-Vears, Occ. Business, R/o. H.No.'17-'l -375t261Mt1, plot No. 4 ;r id 5, We Virat f.fagai, Laxmi Enclave, Hyderabad, Telangana. AND ...PETIT|ONERS t !11on of lndi4 Ministry of Finance, Department of Rever -re, Through tnforcement Directorate, 6th Floor, Lok Nayak Bhavan, lew Delhil 110 003 2, Directorate of Enforcement, Ministry of Finance Govern r ent of india, Hyderabad Zonal Office, 3rd Floor,-shakar Bhawan, Ba s reerbagh, ^ H.yderqpad - 500004 Represented by its Deputy Director 3 TheAdjudicating Authority un.der the preventioh of Mon: I Laundering Act, 2002, Jeevandeep Building, 4th Floor, Sandad Marg, Nr: v Oelfri, Rep"resenteO by its Chairperson. ...RESPONDENTS

- { Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate Writ, Order or direction, one more particularly in the nature of Writ of Mandamus to call for the records relating to EClRlHYZ0l20l2023 daled 31.03-2023 registered under the Prevention of Money Laundering Act, 2002,pending before the Respondent No 2 including the Order under Section 21 (1) ot the PII/LA and proceedings vide PMLA/OAl 153tDELt2025 pending before the Respondent No.3 as being illegal, arbitrary, and without jurisdiction and consequently set aside all the proceedings in relation to EClRlHYZOl20l2023 dated 31.03.2023 against the Petitioners including all the consequential impugned proceedings arising therefrom.

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay all further proceedings in respect of ECIR/HYZO12012023 dated 31.03.2023 pending before Respondent No.2 Enforcement Directorate including not to take any coercive steps or proceedings against the Petitioner, pending disposal of the

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay all further proceedings in connection with PMLA/OA/ 153lDELl2025 pending before the Respondent No.3 against the Petitioners, pending disposal of the above writ petition. Counsel for the Petitioner: SRI G.ASHOK REDDY FOR SRI JAKKULA VAMSHI KRISHNA Counsel for the Respondent Nos.1 & 3: SRI B.MUKHERJEE FOR SRI N.BHUJANGA RAO, Deputy Solicitor General of lndia Counsel for the Respondent No.2: Ms. PRANATHI KARUTURI FOR SRI D.NARENDAR NAIK, SC FOR ED The Court made the following: COMMON ORDER

I'agc -i o[ 33 IN THE HIGH COURT FOR THE STATE OF TE] ANGANA AT HYDERABAD THE HON'BLE SRI USTICE P T .SAM KOS,]IY AND THE HON'BLE SRI TUSTICE S DDAI-ACHALA-.) U \THI RAo W.P.No.28703 AND 28716 of2025 DATE:12.02.2026 Bctwecn : [,atccI Rahrnan SI'rarfan irncl othct s ,\ND Union o[ India, N{inistry of Financc, I)cpartment of llcvenuc, 'f hrough Enforcemcut I)itcctot-ate, 6rr, liloor, [,ok Navak Bhavan, Ncw Dclhi - 110 003 ancl 2 othcts.

COMMON ORDER:

Petr tioncr Rcspondents I leard N{r. (}.-\shol< ltcddt', lcarnccl couuscl ztPPcz I ng on bchalf of NIr. Takkula Yarnslri Krishna, lcatncd counscl ti )r' I ru pcritiorrer; NIr. l].N[ukhcr1ec, Icarnccl cottnscl tcprcscntiLrQ -\Ir' N l huianga ltao' leatned Deputy' St>licitor (lencral oI India fcrr tcspond'l r: Nos l & 3, (lo ttt Ltot l)h .\ .lanl. P.\ot Ko:/t;) and N'ts. Ptanathi l(aruturi, Iearned counse I tcprcsenting

I)aqc I cif 33 l\lr. l).Narcrrdar Naik, lcarned Stancling (loLrnscl [rrr I']nlcrrccment Dircctotatc ti.rr rcsllonclcrl t No-2

2. ,l,hc insrant \,rit pctitions har.c bcen tilcd by thc pctitioncrs undcr ,\ruclc 226 ol thc (.onstitrrtion of India praf ing thc (-ourt [t'r the ftrllorving rclic f/ s, viz., ".........lo ii.ttt, t.t Ltf)PrlfiLttl' ll it. Orrh'r rtr lir-(i/tott' 0 ( nar ptrlita/ar11' trt llte nttttrrt tl ll:'itl rtl ,\l,rtt,l.uttr.s trt ;d// /br lLr rttard'r ruhring to F-CIR/ t|YZO/20/202) dttL,! ,t.0i.202i rtgi'tttnl undtr th Prttttttion ol' ,\lont-y' I ttrrruL'nrrq . 1.1, )00)' \lrliq hr.litrr' lhe llespo ctt No 2 itthuling lhe Onler anltr -\'tttutn 2 | (l ) ttl tfu Pl'lL'| und t'ronulitg'r idt P.\'il)/O.'1/ I ; ) /DI:l -/ 202; 2tttditry bt|on lrc lltipondtnt Xo ) as being i/legt1, arbifra4', tttrr! wilhrttt Vtri'litli0tt tt'd 'ttq ?nt/1' ttt u lt d/ tlte prottr:tlit4qs irt rtlutirtn to I:LIRIIt\'1-O/:0I202) rlartd )I0)'202) agairttt tlt ItL'tiiorter rntlutlir4q ,r/l lltt crttt.;ttlrtut/itt/ intft4qrul f'roudirtXi 'n'iirt.1 llrtrt-f iottt and p,rt .tuch .ltrrlfur or o/lttr (lrtltr! d'i t/'i'; l lrtt'ltl" ( omt ntJ detnt lit rrnl Itropr itt lbe -litti ul cir,rnt-;ltttrtt; aJ /ht t'rt"' in lhe inrrrttls of' FACTS TN \(.P.No )8703 of 2025 iI I i I

3. The bricf hcts of tlre casc :lrc that thc petiuorrcr hcrcin lras bccn irnplicated ir-r an I'.ttfotccnrcut (.ase In[<rrrnauorr Rcport (F](-fR) bearingFI(.IR/FIYZO/20/2023.datcd31032023,initiatcdbvthe Pagc 5 of 33 Irnlirrccmcnt L)irt ctoletc i.c. rt'spondcnt No.2 unclc'r I r. I)rcvcntron oi Nloncy Latrnclt ring \ct, 2002 (tbr short rhc 'Ptrll \ct) rvit hout allcgcci procccds r.,l-crimc or prcdicatc offencc.'lhe pt,tL, r.,rcr subrnits all\ that hc is thc lari ttl ou,trer of land bcaling Sun c \o t9-l/.5/ 1, rvlrtch is l'rclcl urrrlcr valitl parra and is enrirelr tlis ir-'r liorn the tenlible cviclencc. marcrial particulars, or ncxlrs linlir,4 hrm to anv disputccl Ilhoodan lancls alleuc<llv involvcd in thr irrr r:stisation Dcsl.>itc having no intclcst, ()vncrship, c()1rtr()1, irrvolr.cn'rcnt situatt rl in I rrravclli Villegc, \hclrararn ,\landal, Itanga i - rlth Disr rict, (tl: whafs()cvcr in tlrt saicl clisptrtcd lands, thc petilr( l ( r has bccn subjcctcd t() search and scizurc ()pcrations rncreh' or .r r,--( )unt ()f his inciclcntal prcscncc at thc rcsidcntial prcrniscs oI hrs l r, rrlx'r \lrtlul Ilahtnan at Imlibtrrr, \hktrtpura, Ilvdcrabad, during rlrt 'otrr.se of rhe scarch conrluctecl bl thc lto ti rrccrncnt l)ircctorat(.. os,evcr, the I)ctiti()r)cr hacl no rlircct or indirCct orvflcrshil'r, coltti ( I or. bcncflcial intercst in an1, of thc entitics, acc()unts, [ransactions, (,r ] r1)l)(.rucs that arc thc sub,cct mattcr of thc prcscnt enc1uir1., and that I , r-cccir-cd onl), Paee 6 of 33 prolessional lecs lor his services rvhich rvcre dulv accounted [or in compliancc rvith all applicablc m_\ad()n ard rcglrlarorl, nortns_ FACTS IN w.P.No.

-['hc pctirioncrs hcrcin arr. thc 621e12kcrs of propcrucs bclonging to L,{ohd. Xlunarvar Khan_ l,he linlorcement I)ircctorate i.c respondenr No.2 has initiated procccclings agarost them under the rvirh li(l[t/t NZO/20/2023. dated 31.03.2023, despitc the fact that the pcritioncrs are nor accused in thc alleged predicatc offence, which has becn closcd bl the Invcstr,garing Agencv as being civil in nature. ailegcdlv unaurh()rized oFficer, During a search concluctcd bv an certain clocurncnts inclucling photocopics oF rcgistered dccds rvere scizcd, none of rvhich constitute procecds.rt crimc- 1'he petiri..ers \!crc sr'unroucd ancr c.tn,crlccr to givc statemcnts under St:ction -50 ,,i rhc lr.\ll_ \ \ct unclcr cocrcivc

PNIL;\ r\ct in conncction tactlcs C N TIONSOF ETITIONER THE IN W.P.N 703 of

Learncd co..scl fbr tire petitio,er co.tended that lre has .eithcr bccn named as an accusccl in the I,.lR tcgisterecl rn reladcr,n-to thc i l I

Page 7 ol 3i) ptcclicatc oflcncc ltor has hc bccn chargc-shceted bv anr xgcnc\'. '1'hc final rcPort filed bl thc lnvcstrgating - \ I l)rcclicate oifencc clcarlr, tccords that the dispute is ol'I ancl no ctirninalitr is made out. Thercforc, the vcty lir iniriating procccditrgs undcr the PNILA :\ct is abs.: c()n tilrrltti( ) n of such proceedings is rvholh' illcgal jurisrtictkrn.'['hc prcdicatc oftcnce forms tlrc vert' ftrutlt l).\ [ . \ procuedings, and in its absencc, thc machint t Plll..\ \ct crnu()[ bL] sct ifl motion.'Ib substantiate this : lcarnccl counscl iirr the pctitioner relicd on thc iutli; Hou'[>lc Su;rretnc Court in Vilay Madanlal Choudhat of Incliar s hich holcls that in the abseucc o[ a prcdica t jurrsdictiot of thc lln [orcetncflt Directorater under thc [. bc inr-okcd.'l'hus, pctitioncr has no contlcction trrhatstr tr?ulsrcti()ns or c\clcutlon clf cl<lcutnents bctrveen thc pat lrc have arl\ c()ttccrlt or itltetcst in thc subiect pttrl' pr,ccccls of ctit'ttc are allcged to bc in possesslon o[ thc I 1 r\.cs tlga t1f1g :ncr in thc civtl naturc Lnclatiot'r lirr rr, and thc nd r,u,itl.rout rtiorr oi thc ,' undcr the -gulrcfl t, tllc rcnt oi thc: ,, vs. Union offencc, thc \ IL \ cannot . cr rvith rhc ics, tror docs -'rtl'. and trtr r:tilroncr. ' izot e1 t't scc't

Y l'age tl o| 33

6. ,\ccording to thc leamed counscl lor thc pctitioncr, these allcgatrons are mcreiv retterations of cornplaints alrcaclv adludicatcd bv (lourts and ftruncl rvithorrt merit, bcrng repretiux' antl civil in natLrre, r)ot warrantinll ir-rvesugatron under thc PNtl , \'l' . \ct. .\ccording to th(. learned counscl [<x thc pctiu<>ner, thc rcgisu:ation ol tjClR bv respondent No.2 was illcgal and Lrntcnable and rcgisterccl solelr bccause trIR No.83 oF 2023 contains a schcciulc offcnce- Flowcvcr. the Investigating ,\ger-ro, in thc predrcate o[ttncc alrcadv Frlccl its Irinal Repott clearly recording that the dispurc is civil in nature, ver respondcnt No.2 conunued rvith thc inr.esugation u'r an illegal and high handed manner. allegation tcgarding succcssion and parution. l [r. \arvab llohd. Ha ji I{han was the absolute orvncl oF land in Sr,.No. I [il and 1U2, and nominally giftcd land admcasuring Ac.4l 3l grs. in surr.cv numbers 181/4,181 /6, and 182 to \krhd. Farcxrq -\[i hhan firr agricultural land ccrling purposcs under thc ;\gricultural Land Cciling.\ct, 1973. Afrer I. Lcarned counscl tirr the pedtioncr also dcnicd the lalsc li rc\-cnlrc rccords sltorvcd that cettain lands rvere catcgc rizcd as Patta lanrls $'tthottt chirls br rhc llhoodan Yapyra Boarcl, \lr r'au ab \fohcl' t{aii t{tian validlv giitccl land admeasuring Ac 5l ? I gts' to his daughtcr Srnt. I{hadcr Unnlsa on 15.04.2004. Subsccptr tlv, a paruuon rlcccl rvas c\ccutcd <tn 04.02.2014 arrd r:atifiecl by NIr' Ir r ooq "\[i Khan <rt 2l .(tI.20Il, a[1cr rvhich Pattedar passbooks rver'' obtaincd aflcl lln.ls scrt r,,ltl lr lrt r tlrt ir tttct'ssirir.s.

8. Lcartrcd cc.,ltnsel lc.,r the pctitioncr contendcd th: t tlrc -lelangana Bhoodar Yagna llorrd passed an order dated 28 0: l'125 clirccung rcstt>ratitttt of Iencls as 1]hoodan lands, which rvas lrallcngccl rzZ \{iP.\o.7rl0 oi 1025, rvhctein lcarned Singlc Juclgc- !,8 ordcr darcd 13.01.202-a <lircctccl Rcr cnuc ,\uthoritics to maintair.t t'ttrrs qno in' ;il rcsp(cts trll clisposal of thc said \{iP 'I'hcrefcrrc, tlr' Investigating \gcncr' catrtrot assttlrlc ltLrisclicuon to conduct a pare I ') inlt'stigation to clc:cidc civrl ritlc of thc propcrq' during pendcucr ' ' \\ rit petiti.ns bcfirrc thc Hot'l;lc Fligh Court. Thus, this careless :1 proach o[ the rcspondctrts slrows that tlrc invcstigation is sham.

l)agc 10 o[ 33 EF \

9. Learned colrnscl for the peririofler further contefldcd that there exists nc.r pima facie marerial evidcnce co,nccti.g the petiti,r'rer witrr anr''procccds of crime'as deEnccl unclcr Sccriorr 2(i)(u) oi rhc plll_:\ lct. -fhc vcry fourrdation for assurning jur.isdiction under rhc p\II,..\ -,\ct [es in the cxistencc o[ proceeds oF crirnc, rvhich is naLrow.lt. circurnscribcd to properq,- derivcd or obtaincd, cli_t-ccrlv or indirerctly,, as a rcsult oi criminal activirv relaung to a schedulccl offencc. in thc prcscl1t case , thc only articic se izecl l.rom t he pctinone r tvas his personal mobile phone, nameh, Samsung Cialaxv \5.1, ]Ioclcl Name: SXI .\54611 DS, along u,irh an active SI\,I carcl, t,hich uas in his possession and used for routinc pcrsonal communication.'l'hcrc is no rnaterial rvhatsocl,er to shorv that this mobilc phonc constitutcs ptocceds o[ crimc or has anv connection rvith anr allcgccl crirninal activitv. 'l'he peutioner has no manncL of conncction, cither dircct or indirect, rvith the cntiues, bank accounts, uansactions, or inrrnovable propetucs that are norv being ffe,rtcd as thc subjcct rratter oi cnquirr. unclcr thc PNILA ,\ct. 'fhc proccedirrgs proceed on vaguc and s\\rccping asscrtions without anI cogcnt material p,uticulars l Pagc 11 of 33 c()nnccdng the pctittoncr l'ith the alleged acts constitll' lg thc offelnce of nrotrct latrtl rlc ritltr.

10. i,carned cttunscl lirr thc Peritioner fur ther col t F'.nforccmcnt Dircctoratc has failccl to disclose the 'rc r tl-rat torm the basis lirr rhc iniuadon o[ thc ECIR antL scrrch ancl scizttrc rlllcratiorrs, thcrcbv dcpriving thc : funclamt:nta] right to bc hcercl and to challcnge th'' actron betirrc thc appropriatc lrrrum' The impull t blatant viohtiotr of thc principies of natural i constittrtional grlarlntccs crrshrincd under Articies 1' (.onstitutroLr oi lrrclia \ccorcling to the lcarntrtl pctiti()ncr, it is rr scttlcrl principlc of law that the po'r scizcr undcr Scctit'tr 17 oi thc P\lt'A Act can onlv I t ar.rth()rizcd t t it'icct rr'ho hls 'f cason to believc' that posscrssiott of atu- ptocecds oi crime' In thc ) T'-n forccmct'tt l)ircctoratt has neithcr discloscd tht: r llot- dcmonstmtc(l anv tnlrtctiai basis for forming suct 'ndccl that the ons to believc' :hc subscqucn t :ritioner oI his legalitv ol the tl action is in Lsticc and thc ancl 21 ol the ounscl ftrr thc :r to search ancl excrciscd b,v an ,nt pcrson is in r:sctrt ctse, the .rs( )ns to belicvcl bciict-. 'f he mcrc td]tt

Pagc 12 of 3.) fact that Section 420 of IPC aPPears in thc schccltrlc to thc i)\[I.,\,\ct ri.cs n<rt ip.rrt facto clothc the Enforccrncnt [)ircct6ratc rvith tlrc porvcr to registcr an E(ll lt. The esscntial condiuon is thrt thetc must be proceeds of crime and that such tainled P!:opcrn'is being Prolectcd as untainted xs pcr the rcqukemcnts and ingrcdients of St:ction 3 of thc P\t] . \ 1ct. 1l 'l'hr-rs, thc leatned counserl lot thc Pctitioncr ptavccl that ther cndrc pr()cccclings are arbiuat;,', unconstitutl()nal, anc.l liablc to bc cluashccl and sct aside in thc intercsts of justicc. e NTENTI FT ETITIO R IN W. 2 '|tG of

12. Lcarnecl coulsel for the pctitioncrs in this case submittet] that thc petitioncrs beirrg merc caretakers oi thc propertics bcloncing trr Niohd- trlutrarvar I(han, havc uo mlnner t,f corrttection, cither direct ()r i:rdircct, rvith thc enLittes, bank accouflts, ttrtrsactiotrs, r'r irnrtror.alrlc properties that atc now being treatccl as the sublcct uattcr of cn<1uirv unclct thc PNILA T\ct. The pctitioners havc never hcld, nor clo thc1, prcscnthl hold anv owncrship, cotltrol, title, possession, or l'age 13 of li3 bencficial intercst ttr ant' ctf thc said ProPertics or assct their individual tralnt's rlr itr assoctariorr wlth ln\r othell l stagc havc [hc pcltitioncrs cntcrcd lnto anv arranl]emclr other$''1sc, that t'oLrlcl cotrlcr upotl thcm any ec'r adr.antagc, or sharc in thc clealings allcged by tl ' authorities. '['hcrc is als<t nrt llro fit sh:rrint mech2nis' r- financial arr2tlgcmclrt, ltitlclctl ccotrotllic iuLcrest, ot '' Frnancial inr.oh.'emcnt c,i ant liirrd linking thc petitioncr I actir.itics or thc l)cl's()lls:rccuscd oi such activiries'

13. Learned cottnscl tirr thr: petitiotrcrs furthct sul>rr matcrials sctzud cl,-rritrg thc scarclr contlrcted at the P 1 establish atrt'clcntt:trt of tnoltc\' laurlclcring or unlawhr] part of thc pctitioncrs. 'l hc tlocutncnts scizcd arc mcf of tegistctcd ctccds ancl ()thcr PaPers related to tbe llohc[. Nlunarvar l''hatt, t Ilich thc PClitionets rvcre mritt capacitl as caretahcrs. 'l'he tncre posscssion of such J I bv anv sttctch of imagitration conslitute posscssion, ( ( , rvl'rcthcr in crson. \t ntr , financial or r,rmic s take, fespoudcflt undisclosccl cn a rcmote r,r thc allcged ir,tccl that thc rnises do not t:trvitr. on thc ,photocopics rropcrties oi aining ir-r their Pers does not rrcealuent, or

.,1 usc ()f pr()ceccls r.rf ctitnc \ccorcling to the leatnccl couuscl for thc ncither receivcd nor harrdlcd anv allegcd peutioners, the Pctitioncrs procceds oi crin-rc, uor have thcv proiectcd or claitncd anY taiutcd PIoPcrN as r.rntainted. 'l'hc cntrre allcgation that the peutroners arc mi.l,-llclncn (,r fa cililx tors bald, unstrbs tantiated, and nala .fide lSa assettl()tl rvithout anr, matcflal particulars or evidctldarv support and indiviclualized rcasorrs havc bcen rccordcd ()f n() speclfic ncxus or dcm()flstratecl to cstablish anv hnk bcnvccn thc matcrials seized during thc scrrch ancl the alk:ged proccecls o[ crirne' IO o PO DE TS No f o

T E

14. Learnctl counsel lcrr the rcspondcnts contcndcd that thcr atrachmcnr and rcrcntion of propeth' under Sccriotr 8(3) of thc l).\tl. \ -\ct is lcgalh valid and in accordance rvith thc statutor\' provisions. ( )ncc thc .\diudicating t\uthoritrr confitms the attachment of propcrrr trntlcr Scction B(3), such attachmeut contiuues during thc inr.estigauon tbt a pcriod uot excecdinpl 365 da1's or uutll thc disposal of thc prosccLruon comPlaint filcd beFore thc PNfl--\ Court' as thc -/ tl ,.' casc lrla\r bc. Lcar.cr-l cotrnscl fttr rhc respondcnts rclir ( o. thc rccent judgment of thc Ikrn'blc Suprcn-rc (-ourt in Union rri India vs. J.p. Singh2 which clarificci that rvhcrr an order undcr li ction 8(3) ot PNILr\ ,{ct is passecl, thc orcler conlinucs till thc r I sposal o[ the complaint. In thc prr:scnr c:rsc, silrcc n( r prosecudon :omplaint has been filcd yet, Lhc attachrnent orclcr rcmains in lorcc ()r a statutor\i period of 365 dar s. It s'ls also strbmrrred that I r: petiuoner's challengc to thc continuatiorr of atrachmcnt is mi:r c,nccived and contrar\. to thc sctflccl lcgal PositroD. [)anc 15 of .]3

15. I-carnccl co,:nscl firr thc rcsponden[s categol.tc I Ii, denicd the \Vas pctitio,cr's cor-ltc,ti()ns tlrar thc sciztrrc.f r,.bi[c ph.rL, rvas unlarvful sought rhrough ()ricinal \pplicarion N(,l. 153/20,1 trlcd betirrc or arbiuarv. 'l'[rc sublccr rnobilc plrone was sei; r cl strictl,,. in accordance rvith thc pror isions oI the P\tl,A \,: ancl ptoper proccd,rres rvenr lirlkr*ccl.'['ht: rctcl]ri()n of thc seizcc .obile ph..e the ,\djudicating \utlprih', ancl the salne w?s dulv corr irmed by thc Adiudicating Atrthorirv throusl] pronour)ccment of an r ral judgment. 2 CriminalAppeal No1102 of 2025, dated 05.03.2025

l'agc 1(r ol j3 tnd was ncccssar\' [irr thc purposc of- ttn'cstigation. 'l ltc .\tlitrdicaung 'I'hus, thc scizurc tas n()t arbitrarv brrt rvas bascd on lniltcrial cr-idenct: alrcadl adjuclicatcd Lrpon this issu<', and the PctiLiunet cxnrlL,t '\uthoritr', bcin.g the a1>propriatc totr:ttrt tttrdcr the Ptr[I-.\ scltclnc, has circunl'cnt this br approaching the I Iigh Court dirccth'.

16. l,carnccl corrnsel tirt tlte rcspotttlcnts firrther c()rltcndcd that tht 'feasorrs to bt lit vt:' ri't'rt' tirtrtttlecl r,rr crediblc, c()gclrt, and tangilllc matcrial havirrg a dii't ct ncrtts r'.'it h thc proceeds oI critnc. '.f hc rnatcrial criclcncc collcr:tccl dtrrirrg thc Irl\'estigation has a livc link rvith actions rvcrc takcn in rccofclance rvith larv'. It was fut thcr c()tltclldclcl that a dclicatc balatrct trust l)c ntaintirinc<l l>ctrvcctr thc rights oi citizcns and tlrt trghts oi trrr cstiQating agcllcie s as tlre dlrtr thc thc 'rcasons to bclicvt' tirrtnctl bv tltc authorizcd ofFrccr, and all () Iinf<;rcclncnt l)ircctorarc is to trttcarth ancl discovcr thc nl()cltls operantli 1cs()rtcd to lrr t[re bcncficiaries o[ proceeds of crirre, ancl t rhis excrcisc crnu()t l)c utrcltrlv restrictcd. 'i'herelore, thc leamcd counscl tirr thc rcsponclcnts subtnits that this I lt-rn'blc Court cann()t

4It a{ l)age 17 of -33 vhcn thc narrer has alrcaclv bcen decidccl br thc .\rljuclicating

g. into the clucsti.n of rvlicther rhc rnatcrial cr itl -, r,:c has a li'e [i'k ., .:tl t:txt I , x t & i E TI ,t t I i

,\uthoriry ar-rd thc periri()ncr has thc rcmcdr. , r rpproaching thc Appcllate liibunal

17. Learncd counscl for the respondents submrrre I that thc pMLA .'\ct cstablishes its rxvn corn p rch crrsir.e enfirrccrnt r r rnachirrcrt, and other authoritics s.rth acljuclicaton. pos,crs atrtl LLrisclictron. -l,he cnForcement machincrt, is conlctrccl rvith irorvcrs e r I jurisdrction for rnresugauolr, rr.ith lrrrilt in sali.gu;rrrls to cnqr.,. lhir r ..,s. lrrnspxrcnc)., and accountabilitv et all stagcs. .l''c plIL-\ . \ct pr, r rcics a complctc statlrtorv r-ncchanisrn for apPcals :rgaiDsr the orde r , r,i \dludicatrng .\uth<>rirv through the .\ppcllatc .l,ribuual. .\ccorclrrr 1 ro thc learned counscl for thc tcspr>nclc^ts, it is scrtlcd larv rlut u,(l,r r schcrnc of an Act rvhcre thcre rs a lricrarcl.n. of authorities b,- irrc rvhich the pctltiofler carl gct adcqLr:rte r.cc_lrcss, he shoulcl lp r oach thc samc authc)rtt)- rathcr than inr.oking rhe s,ri r jurisdictiorr , this I lon,ble Court. In the prcscnt casc, the peddoncr has cornplc_, lr blpasse<J thc \

l)agc 18 of 33 statutoi:v appcllate mechanism pro.'icled undet PN'fLA '\ct and has dirccrh, approachccl this Courr thror-rgtr thc p[cscrrt rvrit pctition. 'I'he lcarnccl coullscl tbt the rcsporltlents subrnits that since the '\ppellate Tribunal has bccomc {ulh' fuflcu()oal, t}rc petitioncr should approach thc r\diudicating '\uthotitv ()r thc \Ppellatc fribunal as providcd undcr thc statutc. 'fhc Sullrcmc (,ourt's iLrdg-ncnt as citcd bv thc pctitioner in Vilay Mandanlat Choudhary (supra) is not aPPlicable to thc Facts of thc ptctscr1t casc becausc thosc cascs did not involvc situauons rvhcrc a cornPlete statut()fv appcl1atc remcdl, q,as ar.ailable and had 6."n f 1'passccl. 1g. Learnecl counscl lor thc rcspoflclcrrt clcnied the petitioner's claim that he [,as mefch, dragcccl into thc ltroccetlings due to prorimity oi his tand of his prcsencc ar his brorhcr's rcsidcnce during thc search. It was subn-ritted that the pctititlncr is delibcratclv misrepresenting facts to mislcacl this coutt. l)uring rlrc coursc r-,f invesrigatron undcr the PN{l,A Act, an order datccl 27.()1J.1997 passed b)' the Nlandal Revcnue OfFrccr, Nlahe shrvaram Nlandal *''as disct.rvctctl, which clearlt' mentions Page 19 of 3.3 that (1) I{ohd. LatecF, (2) Nlohd , \bclul .lavcccl, and (3) \ r.shi_r a Srrlrana \\,erc [hc grandsons / claughrcr of ,\lohcl. Zabardasth K I :ru. rhc tarht:r o[ \-awab I Iaji l..]ran, rvh. had gii,en hibanama r. rh.. rr lrrr lancl at Surr.ev No.194 admcasuring 26 acrcs 30 guntas. Ilir.; tlocr-nncnt cstablish that thc pctiuoncr was part of the consprrac, oI acquiring land through illcgaI rncans anci [orgerr., t:vco rhorrgl) ,)(. \\,as n()t dircctlv c()nrlectc.l to NIohd. .l.a.barclasth l{han *.h. ir tia,r ,rvnccl land at Surr.cy Nos. 18 1 arrd 1g2. Ijurthennorc, the 1,r 1i111yl1q1 1q . rclauve oi ,\bdut llahma, and NI.,\. ,\ khtar, rvho assr: r .:l \ Iuna*.ar Khan and l(l-radcrunissa ir-r rhe illegal salc of s()vcrrrr r r rr lancl ancl collcctir.ch' rcccir.ccl procceds of crimc r.r,orth Rs.2.-l() cr r.r.s. .1.[rcrc is also reas',ablc suspicio, that the pcdtroncr pla'ed a slg1, r(rart rorc i, thc fabricati.' of lancr dr.rcuments relating t. S,rr.c' N.s . rr1 arcr i g2. 'l'herclirrc, the pcuti.ner's inr.,lvcmert in thc al,,i.cl 1n().c,\ launclcring activitrcs is not incidcntal but substantivr: :rncl r r Lrcr.ial.

19. Lcarned coturscl for thc respondcr_rts lastly subrni rr-i rhat thc petitioner's c,rtenriorr that actron under pNILr\ r\ct car.r r bc rakc, \

Page 2[) o[ 33 against him without being nanred as an accused in the FIR or being charge-shcctcd is legaltv untctrable and retlccts a comPlctc misundctstanding of thc P\11..\ -\ct framcs'ork. It is not flecessar)i that a persofl against whorr act.ion utldcl Scction i7 of I)NILA Act is taken or who is sutnmoned under Scctiotr 50 o I PtrIl,A \ct needs tcr be named as an accused in the trll{ or sh,-,r-rlcl bc chargc sheeted in thc predrcatc o[[ence. ln thc prescnt casc, acti()n lras lrccn takcn against thc petitionet onl-y under Scctic.rns 17 and 50 of l)IlT..'\ '\ct' for which he necd not nccessarily bc alt accusecl or c[ratgc- s lreetcd in thc predicate ofFcnce. 'l'hc investigation unclct [)IIL \ \cr is indepcndent and distinct from thc invcstigauon in thc Preclicatc offcr-rcc. Reearding the existcnce oI the prcdicltc <.,fFcncc, tllt: resprrtldcnts rciteratc that I]IR No.B3/2023, datcd 1-i.03.2023, is sdll in cxistcncc as thc closure fcport has flot beett acceptccl br tht' conrllt-'tcut lrrtlroritv. N{orcovct, cven one schedulecl ofte ncc is suft-icicnt to initiarc a l)\ l[.A case' and once thc PNll,A case ls registcred, thc invcstigation utrdcr PNILA '\ct bccomcs distinct ancl difttrcnt front that of rhc predicate agencl" In - Pagc 21 of 33 the insmnt casc. sincc Section 420 of IPC was in\rokc I and the samc bcins a schcdulcd offence, the present E(lIR rvas r.alitll rccorclcd CONTENTIONS OF THE RESPONDENTS IN !i P.No.28716 of

20. -\ccording t() thc lcarncd counsel tbr the lr s rondcnts, the contentions raisecl rrr \\{ I1 No. 28103 of 2025 arc also a1 irltcable to thc prcscnt casc- Hon,cr.cr, the lollorving additional sulr r',issi,rns t'crc maclc spccificallr- t.ith rcspcct to WP No. 28116 <tf 2l), - .

21. ]-earned cotLtrsel for the respondent contenderl trat thc scetch ancl scizutc opcral,iolls conductcd undcr Sccuon 17 ot rrc P\11,.\ .\ct terrc carried out in sttict acc()rdance wrth the la,,r'. lrc aLrthorizcd oit-iccr, rvas dull emporvcred by thc Joint Dircctor oi rc I Ir de rabad Zr>nal ()Ffrcc to crinduct the search and seized all tht: l rctu'ncnts and Propcrtics, inclLLditrg rnobilc phoncs, were reler.ant t( ) L r irrr ustig:rtion and had a dircct rrexus rvith the proceeds of crtnr:' Iirrrtlrer, tlrc 'rcasons to bc[cr-c' standatd tcquired under Scction ll !as nrct at tl]c authorizatlon stagc, and ()nce authorized, the investrga'rg oif-icer rvas not rcquirecl t<l ltrrtn'r scpalate rcasons fbr each scizur,r. litrrttrcrn'rolc, .".**

Pagc 22 ot- 33 tLrc panchanama rvas propcrlv excclltecl rvith indcpcnclent rvitncsses, and all procedural safeguards r,,.ere folkrrvccl dtrring rlrc sclrch and seizlttc oPCrations.

22. Lcarned counsel fot resporrdents submtttccl that thc pctiuoncrs and their family members wcre actir-c bencficiaries of procecds of crimc amounting to Rs.2,30,00,000/ rvhtch t'as dirccrlv traccxble to thc illegal sale oF government Bho()dan lancl. 'I l'rc monct' trail cleatlv csrabLish that Rs.1,15,00,000/ cach s':rs t'cccivccl br' Ilohammed Abdul Rahman and N{ohar-nmed \bclul .\khtar Fronr }Iunarvar I{han and the buyets Q'.1. Santosh Kumar attcl Robbali Visrvanatha Reddl) rnaking them maior beneltciaties in the criminal conspiracr'. It rvas further submittcd that the statctrents rccordccl undcr Scction 50 of PNTLA Act also wcrc voluntarv ancl rvithor-rt coerciott, as cvidenccd b1' declata[iorrs made b,v the pctitioncrs tltcnlst'h cs.

ISSUES

23. Flaving heard the contcflti()ns ptrt ltrrth on cithcr side and on pcfusal o[ rccords, thc qucstiofr rhat:rrisc tirr consideration irr this writ petlfions afc:- Page 23 o[ 33

a) \\rhctlrcr thc rvrir pcdrion is maintainable irL [au' u'hcn a corr-rplcrc statut()rl appellatc mechanism under rl r l)\[1..\ \ct is availablc ancl functional, and thc pctrtioner has bl passed thc salnc/ t[-rc PNI[. \ \u arc arbitrarl,, illegal, or violatrr c rf \rticles 1'1 TO enshrinccl unclcr Scctions 26 and 42 of the I']NIL-\ t:t bt clirectlr, and 21 of thc Constituuon of India? CONSIDERATION OF THE ISST]ES attcrnptctl circtrmr.cnt thc complete statutot\- ap1-r ilatc hrcrarcll'

21. \X,c arc o[ thc considcrcd opinlon that thc 1,, titroners havc

b) \X,hether ttre rcgistrarion of ECIR/HYZO/t','.1 /2023, da,red i1.0-1.2021, and subscquent actions under Sectio r 17 aad 50 of invoking the cr t r:rotclinarr- rvtit jurisdiction oI this .ourr without cxhatrsting thc c it-rcacious alternativc remedtes availr rle r-rnclet tlrc ['hc [ [on'ble SLrprcme Cor.rtt has repeatcdh, t L rphasizcd that s ta tutc rvrrt iurisdicuon under .\rticle 226 should not be exer:r i t:cl to strt'lc ()r irnpede investigation oI cconomic offcnccs, pa]:t:( Lllarlr moncl laundcririg rvl'rich has scrious national and intetnatior: ratnitlcatrotrs Pagc 24 of 33 afld threatens the verv economic sccuriw and financial integrin' of the natlon. compclling cffcumstances, jurisdictional crror or consritutional violation that rvould warraflt bvpassing the statutotv appellate mechanism and invoking thc discrctionarr rvrit juriscliction at tl-ris nascent stagc of invcstigation. The matcrial on rccotcl irre futabh cstabhshcs that the Ijnforcement Cornplaint Infcrttlarion Ilcpott (.LCIIt) rvas validly registered on the basis oi a schcdr.rlc:d prcdicatc offence registcrcd in Crimc No.B5 of 2021 urrclcr Section:120 of ll)C-, rvhich relates to largcscalc illcgal alicnation of sovemmcnt lands through lraudulent means involving multiplc accuscd persons including the pcLttioner's familv n'rcn'rbcrs and busincss xss()cixtes. l'hc investigatior-r has tevealed urcll orclrcstratccl crirninal conspiracv Furthct, thc pcdtroner [ras failed to dctnonstratc an\ l proceeds of crimc rr,lrich r.r'ere subsequcntlv rvherein goverflmcnt lands mcant ltor rcdistribrrtion to lancllcss poot under the Rhoodan Yagna movemellt \\rcrc s\ stcmaticallv and illcgalh alicnatcd through fabtication of documcnts, rnanipulation oi rcr.cnuc rccords, impersonation, and crcauon of ftauclulent titlc chains, thetebr' gcncraflng e l1()fmous

Page 25 ot 33 laverecl ancl ifltegr:atctl thlough comPlex ProPcrty transac lorls to glvc rhcm tl-rc xl)pcaratrcc oF lcsitimacl', the vcrv csst'rl' r "i mouc\ launclcring as is dcfrncd unclcr Section 3 of the PNII'A '\:

25. -['he three -f uclqc L]cnch o[ thc Flon'ble Suprcme ( - >urt l{on'blc Suprcn-re (-ourt in Viiay Madanlal Choudhary (supra) 1r s upheld thc constitutional valiclrtr of thc PNIL.\ ,\ct and held thrLr (' [)r{ )\risi{ 't1: of thc l)I{t,,\ \cL tlo not violatc an}' [undamcntal tiglr s guarantecd unclcr Part Il[ oi rhc (]onstitution. fror rcadr. rcferenc: rhe finclings gir.en bv thc llrn'blc Supremc Court in the aforcsaici t rsc of Vijay Madantal Choudharv (supta) in paragraph Nos l I I & .169, are rcprocluccd lrcreu n clc r, r'i2., "13rt. tiorl /1t". ,t,rri' iutt,Erttgc af .\'ection ) of the 2002 At, it r; tlol l/,t oJfLrra' /)l /natk)' /undutng i.t un indefendenl (Jent ' frttt'st' or r/it.tt'. ;t thtt ltl aitl) lte Traued.; o.f oine which ltad b t obl n'tl u-, ,1 1'1.'tril of ttirttinul ndii\ rtt/ahng to or in relalitn t' ollin*.-['lr frt,t.;i nr,rrliri/1 can be it ttty fitrrn - be it one t)f fo.tiLi.tiotr, ltitlt 'i/tt)/1, rr-t,' o.f proteul.; ttf oirue a-s mtuh at 7t't, a k.ti t l t)r0fu /) or tlairuir4g it la br -ro. 1'has, inuoluement in at' f)rlft.i! 0r dttlt:ia ;rtlnt,led with thc frorud.s o-f rinte wou/d ntr-rli,t monq' hnndcirr1. l'lti.t o-1firuz othcnvi.;a hn nothirry to do wit'l' tnp/1't/cur l,rrlirX thr: t stfukrfud ,tlir,g it l.t )tt( of stLh a ttllinn o.f lr,tinina/

uctirity relatitr,q to u :th,:dtled olJinie NftPl llte lroteclt o.f ttmt funn'd or ohtdttad u rt ru ltf' l/tdl ,:rt///c. 169.,'l.r o.fbre.trid, in /Lit ltotktlrap :lmtndment ,1i 2 ttl 201 L'tnr inlu being. Couideing /? ParPort ()-f tfu anenfud prut:i-tionr tncl lltt rxpuieut of' inpktnentiry/ etfbncne t (13( Lie.i, futtbtr thntX':'r be m? t^rat.'y la th'etgthett tltt netbanism rcgt i 3 Pnt'r til af t0 ?)'latrnderit.q' It i'; not nlh/ in atlamitg that the attachment qf' Prl\r\' (!,roti:ional) undtr th vrltnd fraui.so, as arnetded, has no litrk with lln nlndtltd aLfe Le l (tr tutl) u.t '\'e'tiot )(l)tntisl,qts Jhul -rult an attiot nn bt ititiakd on/y at tt bt''i'; of nt Lttirl irt pose.;sion oJ tfu aatboi.;ed ot'fnr inditaliue of any petnn btin,'l itt ["'''"''''irttt ol' proceerls oJ' time. Tln prcc'onditirtn.[or fuir3 pro;tedt of ttttttr: it lhtrl llt Pn)Prr4' hd.r fuu lciul c'r obttited, direifi ttr iulinctil. b1 tn1 ftr'rttt rtt 'r revh of triruinn/ aclittif,rclatiw lo a:chedu/e,'l o//inn.l'Le .ruttp af \ttliorr 5(t) it ttot liniled ta the arused rudn"ed in tlr oiniru/ atlitatl' rt/ithrtl kt tt .;futlu/ed afiirttt. It woald upPh t0 dtry Perco (tot ncte.tsanl1' [17x'1 rtittrt irr tlr scherluled q1[cw), tf hr it irtt'oh,ed it tttty frots.t or ttdtli7 tornt't*4 uillt tlt: prorcetls ol tine . Sub a person bas)rle-r .f'ai tg tbt ".ott.;eqrunt rti pnt i;trttttt/ ttlldl)rtt t ordtr, na1 ertd up in bung nuncd ai utttt.rrd in lln ttnt/t/ttrttt ht lt liletl lry lhe afihoivtl offi,rr toncerning o.[[e nu mder .\'ettion ) oi tln ]00) -1, t. "

26. 'l'hc Flon'ble Suprcmc (-outt also in thc case oF Satycndar Kumar Jain v. Enforcement Directorate3 hcld at paragraPh \o 20 as Lrnder, \riz., '(zozqa scc 715

Pagc 27 of 33 ''20. 'fhe afltrtL of ntont-t ltttnleritg as tonlenf/ated in -\'eiitrt ) bc,:n eltbontkll kdt uith 11 tht three'.[ulgt B,'r i .\ladtnl,l(.l,trdl,,tt.'1' |'i1,r1' \l tt tl C.hordltarl'u. Liniott oJ t l2 -\.(.(.. t : (202)) 2l I7-R Ol - I : 2022 .lCC Onljne SC 9. il ha.; lntn olt.,tnt:l lh .\t,litr J hus a widr reach- The oif,r LLl1turci ttrt') ['n,ts.r uttl attit'i/)' h lealirg with tlte prorclt tl' , ar i irett/1'. ,trtl i.r rut linitul to thc ha/>peniry of )e .li,td/ n.l , ol' lainted fruPr/) in 1fu lbrntd/ cto tlrT!)r t0 Loflrtit te dt ,'t /tunfuiuq. Of ;rnr.v. tl)( Lt///h0i0' o/ thc Aa nised OlJinr ,'u t !rl!e. tt d )' fi r.trttr .lor tfu rtf/iatr ol nonc),-/uatdeitg ,ge tt ,'t.'a tltcn'Lt.r:i.ils 7nt;rd.t of' trintt wilhut //te rncaning ttf -\'eni) 2(l)1, arul.furthrr il it itrt'olL ru iry lrlL$J or artiitl. Nol r:uen it :r t of trnrhnht-trd iruntrt tt tt rc.spt.tlit't o.f its uo/lmt, tbe def nitir,'t af rintt" u t .\ei.tion 2(11ftr) wil/ get athaded, rulcst n f;rL! lrin:d or obhriud ,,.t , ,,'.;1r/t ol tnninol artiui4 rchling to a .t,, 'f fu f roperh nttr.;/ qtruli1) /ltt l,'linition qf 'pratedt oJ tittt," 2(1 )Qr) o.l llu ..lt:/. ./1.; oh.tLnul. in ttll or uhole o.f the oime Trtt .;tlxdtl,,'l oljtt,i' ru nrtl ht rr,grrded u pronr:d.t oJ tine, l:tr' Eul1firy tlt dLlinitiott ol ''f'rontd.; o.f rine" ander -f ect,n r tut.t.iLui/) b, 1lr atn| ftrofttr/iL.t." m()nc\ l:'!,, -4 hts itr l'iiLly ,iio. (202 ) ) )' , m whi,h t u d,,tJin:d tatc, lu'eclly 'irttryration af ruonel'- 't tbe ./1i h) rrrd r,n/y if' ) a.l thc ,1r/ 'tJ eiiene a[ "prateed-s 'r4, ln.r hun l.,led alJinn. rdtr.\'eiiott t4, ltnked to r,t/ prr.,pertu-t ;(t )ftr) wr// 21 . '['hc pctitioner's cotrtcntion that hc has no I ]rlrs with thc a lle sc(l launilcrin.g activitics is demotrstt;L riv talsc and c()ntradicted br' (locumcntaf\i cvidcnce includir-r r his familial conl'rccti()ns t ith kcv accuscd persons, his involveme - in suspicious \.

land uansactir)fls in thc samc geogtaphrcal area during thc rele\.ant pcriod, his business associauons rvith pcrsons dircctlv invoh-cd llt illcgal alicnatitxr o[ Rhoodan lands, and thc pattcrrl of propcrfi' acqr-risiuons that pnnta facie suggcsts deplr)1r1gn1 oI proceeds of crimc Further, thc pcridoncr's argumcnt tliat his land beating Sun el No.194/5/1 is distrnct flom drsputcd Bhoodan lands is irtclevant at illegal land alienation and money laundcring activitics, and tht petitioner's role therein cannot bc conclusivcly tuled out rvithc.rut complcting thc invcs tigarior-r this stagc, as thc in\.estigation 1s cxamining the cntire nctrvr-rrl< of

28. 'l'hc scizure o[ the petitioner's mobilc phonc also rvzs corrdLrcrcd stricth, in accordance s,ith Secuon 17 o[ the PNt]. \ .\ct rvhich cmporvers authorized ol'l'iccrs to seize not onl)' proccccls of ctitnc but also anv rccords, clocutnents, .)r Propcrry which mar b': usc[ul for or rclcvant to any investrgatron undcr the l)NlL-\ \ct. \ mobile phone cor-rtainu'rg digital evidcnce, communicati()n records, financial transactions, V/hatsApp rrressagcs, cmails, call records, Pagc 29 of 33 mobilc phonc also has bccn dulv con fitmed b1' '\djudicating 17 for thc I)utl)()sc of invcstigation. Thc rctcnti()l oI the seizcd tI passe<l a reasotrcd order confirlnintr thc retentioLt t his Cnurt rn of thc statutorv authoritf unlcss thc ordcr is sh(x\ 1 rr bc rvl-rollt' location data, ancl P()tenriallt incriminatir-rg matcri, I lalls squarclv rvithin thc arnbir of Pr()pcrn' that catr be lawlulll' setzc c under Scction pervcrsc, \\1th()ut jurisdiction, or viriated b1' nala -fidL: lotre oI rvluch has bcen tlcmonsttatccl ifr thc ptcscnt casc r\uthorin lies in statutotv appeal to the r\Ppcllate lribunal undcr Section 2(r of the PNIL.,\ Act, which provides for exp: lrtious disposal ,\uthorin' throtrgh oral iudg,mer.rt in ()riginal Applicati, L No 153/2025 after applicatron of itrdicial tnind to the matcrial plact i bcltrrc rt. 'f he Aclludicating ,\urhoritv is thc cotnpe tcut statutor\ 2 r th()rit\. Lrndcf Section B o[ thc l)\{LA Act to dccitlc upon continuati ,tl o[ seiz':uc f attachmcflt, ancl oncc suclr authoritv has cxamine(l he mattcr afld exercisc oI s.-rit jtrtisclictton should rrt.rt sr-rbstitute its r,, r', i'iew for that

29. Thc pe utronct's rcmcclt aeaitrst tlrc order of I t .\cliuchcating rvithin six (06) monrlrs an,J thercafler tlls (,ourt under Section 42 I'al:(' .10 oi ii l() r>f arbitrariness. violatirn {)f natural justicc, ancl lack of on substantial qur:slions of larr,:'I'hc pctitloncr carrnot be pcrrnitted to fcasons t() bvpass this complcrte appcllatc liicrarchv and dirccth, approach this (-ourt in rvrit juristlicdori rncrcl\. becausc rlrc sratutorl, rcmcdics rnav n()t yicld the desirsl rcsulr. F-urthermorr:, thc peutroncr's allcgations believc' atc w.holh nriricorceivetl antl rr:flcct a fundamcntal cconomic oflcnccs nrrdcr spccial lcgislation. .\t thc stagc oI investigation, thc thtr:sho[d is 'rerason to belrer.c' :rnd not 'prooI authorin-is not rcquircd to disclosc cr;rnplete 'rcrsons to bclicvc'at misr.rnde rstanding oi thc legal yrrinciples gcrvcrninrl inr.csti.gntion ,,f thc inr.estigtuon stxg(' as snch disclosrrtc rvo'.rlcl dcfleat the lcrr. beyond rcascrnable clo,ubt' or cvcn '?ixld fdcie case'. -I'hc ir-rvesrigating purpose o[ tnvcstiganon, alcrt porc,rtial co conspirators, ancl cnable dcsttuction o I cviderrcc unsustainable in light oi rhe irrcfutable monev trail cstabLshing rhat

30. 'I'he petitioncrs' claim of being mcrc careral<ers is lactuallv -'7 Page 3l of 33 rhel rcccir.ed pr()ccrcrds of crimc amountrnll t() Rs.l,1:. )r),000/- c^ch (toteling l{s.2,30,()0,000/ ) dircctly traccablc t() thc ilcgal sale of q()vernmcnt llhooclan land.'I'he receipt of Rs.90,00,()( ( 7' cach ftom Nlunawar Iihan's accoult and an aclditional Rs.25,00,( [)0/- each as cotnmissron Ftom thc buyers (N. Santosh liumar :Lnd Bobbali Visu'anatha Rcddr) conclr"rsivelv dcmonstrates that thc 1 r tirioners rvere trot passivc carctai<crs but active bcncficiarics arcl par i:rpants in thc lavcring and integtrtion oi procceds of crirne

31. Furthcq rhcr pctitioners allcgations rcgardinu unauthorizcd scarch opet'ations anci cocrcir.c statcment rccorclir a tCl rvholll, unsubstantratcd alid contraclictcd bv thcir os.n volrrnrar dcclaratrons maclc cluring thc rccording ()[ statcmcrlts uncler Scctiorr .r0 of I']II],,.\ lct. 'l'hc scarch encl scizutc opcrations u,crc conclrr,' ld strictlv in accordancc rvith Sccuon 17 of Pi\IL-\ -\ct bl e dulv arrtl .rtizcd officcr ur-rder ptoper authonzation frorn thc Joint Dirc,' : r, and thc pancbanana rvas executed with indcpcndent s,itncsscs ir compliancc rvith all proceclural sa k'guarc'ls I\. I):rge 32 ol 33 fundatnental misundcrstanding tlre scope o[ thc PNt],.\ ,\ct, rvhich extencls rrot only to dircct procccds but also to docutncnts cvidencing tl-re posscssion, conccalmcnt, trsc. ()t proiection of procccds of crimc AS untainted pr()pcrt\. 'fhc clocut.t-tctrts seizcd durirrg thc scarch cstablish a dircct rrexus rvith thc propt'rtics accluired through proceeds oi crimc and dcmonstratc thc l)cdii( )ttcrs' rolc irr facrlitadns thc illegal transacttons.

33. 'l'hc P\ILA .\ct is a spccral lcgislariott cnactccl to combat thc rrcnacc oI mono' launcle rittg ri'hich facilitates scriolrs crimcs ir-rcluding tcrrorism financing, drug traftrcking, crlrrupuon, and orgauizcd ctimc rnere 'fhcrcfirtc. (-()urts rnust ercrcise rcstrrlillt ancl a[[orv invcstigating .): Lasdr', thc petittoncts argutncnt that thc seizcd documcuts arc photoco1'rics aucl do n()t c()lrstitrrtc ptocccds of ctimtr rcf-lccts ;r agenclcs to comp[ctc lnvcstigart()11 rt'ithor'rt prcmaturc itltcricrcncc unlcss tlrcrc is c[e ar atrd cot.n incing cviclenc c ol xtulu -fides, c()mPIct( lack oi jurisdiction, or gross violatiorr o[ [unclamctrtal rights, none r.,f rvhich cxists ir1 thc ptcscnt cas(

Paqc 3i of :i3 3-1. lirr rll thc;rfirrcsaicl rcasolrs ancl thc judicial prc.,, ()nrs rctcrrcd to nbor,'c in tl'rc Precc.tling parauraphs, wc arc of tl , considcred opinion that thc instant \\-rit pctitions arc dcvoicl of nr . ri, dcscrr.c tcr

CONCLUSION

bc ancl arc accorclinglv ilisrnissccl -l:) \s a scqucl, rnisccllaneous peurions pendinu if rr r. shall stand closcd. orvcver, thcre sltall bc rto ordcr as to c()sts SD/-AHMT D ABDULLAH KHAN SS ISTANT REGISTRAR //TRUE COPY// SECTION OFFICER KOSHY One Fair Copy to the Hon'ble Sri Justice P.SAtr (For His Lordships Kind perusal) AND One Fair Copy to the Hon'ble Sri Justice SUDDALA C - ALAPATHI RAO (For His Lordships Kind perusal) To PSK, BS PmCr

1. 11 LR Copies. , #:,,r.:i,"J*a;:l;lro Union of tndia Ministry of Law, Jr_s rce and company

3. The Secretary. Telanoana Advocates Association Libra r High Coud Buildings, Hyierabadl I 9n" CC to SRt JAKKULA.VATI_SH| KR|SHNA, Advocar I OpUCI i, El! EE is SHl H.RXH$,tsiAmittztn?8,,"&?t i!',!i'#r.aa ropucl

7. Two CD Copies vv I vr r LU r\

HIGH COURT DATED:1 210212026

COMMON ORDER

WP.Nos.28703 AND 28716 ot 20 1H: ( oot 13 ''1 );'li * t eP^r t DISMISSING THE WRIT PETITIONS WITHOUT COSTS ?$& I \l 31 ,-6 c')