Sunil J Anandpara And Anr vs Directorate Of Enforcement And Anr on 22 July, 2026

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    Bombay High Court

    Sunil J Anandpara And Anr vs Directorate Of Enforcement And Anr on 22 July, 2026

                                                    CNR No : HCBM010310042025
    
    
    
    
                                                          56-WP-3159-2025.doc
    
    
              IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                    CRIMINAL APPELLATE JURISDICTION
                      WRIT PETITION NO. 3159 OF 2025
    
    
     1. Mr. Sunil J Anandpara, Age - 49 years
            S/0 Late Jugalkishor Anandpara
            Adult, Indian Inhabitant
            Address - Flat No. 6401 East,
            Lodha World One, Senapati Bapat Road,
            Lower Parel, Mumbai-400013.
    
    
     2. M/s Dhwaja Commodity Services Pvt. Ltd,
            Through its Director,
            Sunil J Anandpara, Age 49- years
            Address - 602/603, 6th Floor,
            Sanjar Enclave,
            Opposite Milap Cinem S.V. Road,
            Kandivali West
            Mumbai~400067.                           ...Petitioners
    
    
                               Versus
    
    
     1. Directorate of Enforcement
            Mumbai Zonal Office - II
            Unit No: 301-302
            Ceejay House,
            Dr. Annie Besant Road,
            Worli, Mumbai - 400018.
    
    
    
    Arjun                               1
                                                           56-WP-3159-2025.doc
    
    
    
     2. The State of Maharashtra                     ...Respondents
    
    
    
    
                                        -----
    Mr. Sunny Punamiya a/w Kinnari Mehta and Amit Singh, for the
    Petitioners.
    Ms. Manisha Jagtap, for the Respondent - ED.
    Ms. Gauri Rao, APP for the Respondent - State.
                                    -------
    
                                   CORAM : ASHWIN D. BHOBE, J.
    

    DATE : 22nd July, 2026.

    Oral Judgement :

    SPONSORED

    1. Heard Mr. Sunny Punamiya, learned Advocate for the

    Petitioners, Ms. Manisha Jagtap, learned Counsel for Respondent

    No. 1 – ED and Ms. Gauri Rao, learned APP for Respondent –

    State.

    2. Rule. Rule made returnable forthwith and with consent of

    the parties, heard finally.

    3. By the present Petition, the Petitioners have assailed the

    Order dated 04.04.2025 passed by the Special Court under the

    PML Act, 2002, City Civil & Sessions Court, Mumbai (“Special

    Arjun 2
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    Court”) in PMLA Special Case No. 630/2025, by which the Special

    Court has issued process against the Petitioners for the offence

    under Section 3 read with Section 70, punishable under Section 4

    of the Prevention of Money Laundering Act, 2002 (hereinafter

    “impugned Order”). The subject matter of the proceeding is ECIR

    bearing No. ECIR/MBZO/II/01/2023.

    4. Petitioners have sought the following substantive reliefs in

    terms of prayer clauses (a) to (c): –

    “a. This Hon’ble Court be pleased to pass appropriate
    Order(s) and/or Direction(s) to call for the records
    and proceedings being PMLA Special Case No. 630/of
    2025;

    b. This Hon’ble Court be pleased to pass appropriate
    Orders and/or issue appropriate Writ in order to check
    the legality, validity and constitutionality of the Order
    dated 4th April 2025 passed in the PMLA Special Case
    101 No. 630 of 2025;

    c. After testing the legality, validity and
    constitutionality of the Order dated 4th April, 2025,
    this Hon’ble Court be pleased to pass appropriate
    Order(s) and/or Direction(s) to set aside and/or quash
    the Order dated 4th April 2025 passed in the PMLA
    Special Case No. 630 of 2025.”

    5. Mr. Sunny Punamiya, learned Advocate for the Petitioners,

    submits that the Petitioners’ grievance is confined to the ground

    Arjun 3
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    that cognizance in PMLA Special Case No. 630 of 2025 was taken

    by the Court of Sessions, designated as the Special Court under the

    PML Act, 2002, City Civil & Sessions Court, Mumbai (“Special

    Court”), on 04.04.2025, i.e. after the Bharatiya Nagarik Suraksha

    Sanhita, 2023 (“BNSS, 2023”) came into force, without affording a

    hearing to the Petitioners. He, by referring to Chapter XVI of the

    BNSS, 2023, submits that a pre-cognizance hearing must be

    afforded to the proposed Accused. He submits that this was not

    done in the present case, thereby violating the Petitioners’

    statutory right and causing severe prejudice to the Petitioners. He

    therefore submits that the impugned Order is illegal.

    6. The Hon’ble Supreme Court in the case of Kushal Kumar

    Agarwal v. Enforcement Directorate1, in paragraph Nos. 4 to 7 has

    held as follows :-

    “4. Section 223 of the BNSS corresponds to Section 200
    of the Criminal Procedure Code, 1973 (hereinafter referred
    to as ‘the CrPC‘). However, a proviso similar to the proviso
    to sub-section (1) of Section 223 does not find place in
    Section 200 of the CrPC.

    1 2025 SCC OnLine SC 1221

    Arjun 4
    56-WP-3159-2025.doc

    5. This Court has taken a consistent view that a
    complaint filed by the Enforcement Directorate under
    Section 44 (1)(b) of the PMLA will be governed by
    Sections 200 to 204 of the CrPC. This view has been taken
    by this Court in the cases of Yash Tuteja v. Union of India1
    and Tarsem Lal v. Enforcement Directorate2. Therefore, the
    provisions of Chapter XVI, containing Sections 223 to 226,
    will also apply to a complaint under Section 44 of the
    PMLA. As the complaint has been filed after 1st July, 2024,
    Section 223 of the BNSS will apply to the present
    complaint.

    6. The proviso to sub-section (1) of Section 223 puts
    an embargo on the power of the Court to take cognizance
    by providing that no cognizance of an offence shall be
    taken by the Magistrate without giving the accused an
    opportunity of being heard.

    7. In this case, admittedly, an opportunity of being
    heard was not given by the learned Special Judge to the
    appellant before taking cognizance of the offence on the
    complaint. Only on that ground, the impugned order dated
    20th April, 2024, will have to be set aside.”

    7. In the case of Parvinder Singh v. Enforcement Directorate2 in

    paragraph Nos. 32 to 37, The Hon’ble Supreme Court has held as

    follows:-

    “32. In such view of the matter, we are in absolute
    agreement with the decisions rendered by this Court in
    Tarsem Lal (supra), Yash Tuteja (supra) and Kushal
    2 2026 SCC OnLine SC 903

    Arjun 5
    56-WP-3159-2025.doc

    Kumar Agarwal (supra), which we quote profitably.

    Tarsem Lal v. Enforcement Directorate, (2024) 7 SCC 61

    “17. After carefully perusing the provisions of PMLA, we
    find that there is no provision therein which is in any
    manner inconsistent with Section 205 CrPC. Hence, it
    will apply to a complaint under PMLA. A summons is
    issued on a complaint to ensure attendance of the
    accused before the criminal court. If an accused is in
    custody, no occasion arises for a court to dispense with
    the personal attendance of the accused. We may note
    here that Section 205 empowers the court to grant
    exemption only when a summons is issued. Sub-section
    (2) of Section 205 provides for enforcing the attendance
    of the accused before the court at the time of the trial. If
    the accused who appears pursuant to the summons
    issued on a complaint were deemed to be in custody, the
    lawmakers would not have provided for Section ……

    ***

    33. Now, we summarise our conclusions as
    under:

    33.1. Once a complaint under Section 44(1)(b) PMLA
    is filed, it will be governed by Sections 200 to 205 CrPC
    as none of the said provisions are inconsistent with any
    of the provisions of PMLA;

    33.2. If the accused was not arrested by ED till
    filing of the complaint, while taking cognizance on a
    complaint under Section 44(1)(b), as a normal rule, the
    court should issue a summons to the accused and not a
    warrant. Even in a case where the accused is on bail, a
    summons must be issued;

    33.3. After a summons is issued under Section
    204
    CrPC on taking cognizance of the offence punishable
    under Section 4 PMLA on a complaint, if the accused
    appears before the Special Court pursuant to the
    summons, he shall not be treated as if he is in custody.

    Therefore, it is not necessary for him to apply for bail.
    However, the Special Court can direct the accused to
    furnish bond in terms of Section 88 CrPC;

    Arjun 6

    56-WP-3159-2025.doc

    33.4. In a case where the accused appears
    pursuant to a summons before the Special Court, on a
    sufficient cause being shown, the Special Court can
    grant exemption from personal appearance to the
    accused by exercising power under Section 205 CrPC;”

    ***
    (emphasis supplied)

    Yash Tuteja v. Union of India, (2024) 8 SCC 465

    “6. The only mode by which the cognizance of the
    offence under Section 3, punishable under Section 4
    PMLA, can be taken by the Special Court is upon a
    complaint filed by the Authority authorised on this
    behalf. Section 46 PMLA provides that the provisions of
    CrPC (including the provisions as to bails or bonds) shall
    apply to proceedings before a Special Court and for the
    purposes of CrPC provisions, the Special Court shall be
    deemed to be a Court of Sessions. However, sub-section
    (1) of Section 46 starts with the words “save as
    otherwise provided in this Act”. Considering the
    provisions of Section 46(1) PMLA, save as otherwise
    provided in PMLA, the provisions of the Criminal
    Procedure Code
    , 1973 (for short “CrPC“) shall apply to
    the proceedings before a Special Court. Therefore, once
    a complaint is filed before the Special Court, the
    provisions of Sections 200 to 204 CrPC will apply to the
    complaint. There is no provision in PMLA which
    overrides the provisions of Sections 200 to Sections 204
    CrPC. Hence, the Special Court will have to apply its
    mind to the question of whether a prima facie case of a
    commission of an offence under Section 3 PMLA is made
    out in a complaint under Section 44(1)(b) PMLA. If the
    Special Court is of the view that no prima facie case of
    an offence under Section 3 PMLA is made out, it must
    exercise the power under Section 203 CrPC to dismiss
    the complaint. If a prima facie case is made out, the
    Special Court can take recourse to Section 204 CrPC.”

    (emphasis supplied)

    Kaushal Kumar Agarwal v. Directorate of Enforcement,
    2025 SCC OnLine SC 1221.

    Arjun 7

    56-WP-3159-2025.doc

    “5. This Court has taken a consistent view that a
    complaint filed by the Enforcement Directorate under
    Section 44(1)(b) of the PMLA will be governed by
    Sections 200 to 204 of the CrPC. This view has been
    taken by this Court in the cases of Yash Tuteja v. Union of
    India
    , (2024) 8 SCC 465, and Tarsem Lal v. Enforcement
    Directorate, (2024) 7 SCC 61. Therefore, the provisions
    of Chapter XVI, containing Sections 223 to 226, will also
    apply to a complaint under Section 44 of the PMLA. As
    the complaint has been filed after 1st July, 2024, Section
    223 of the BNSS will apply to the present complaint.

    6. The proviso to sub-section (1) of Section 223 puts
    an embargo on the power of the Court to take
    cognizance by providing that no cognizance of an
    offence shall be taken by the Magistrate without giving
    the accused an opportunity of being heard.

    7. In this case, admittedly, an opportunity of being
    heard was not given by the learned Special Judge to the
    appellant before taking cognizance of the offence on the
    complaint. Only on that ground, the impugned order
    dated 20th April, 2024, will have to be set aside.”

    (emphasis supplied)

    33. Accordingly, we have no hesitation in holding that
    Sections 200 to 205 of the CrPC (now Sections 223 to
    228 of the BNSS) would be applicable to proceedings
    under the PMLA.

    34. A mere ministerial act cannot be termed as an
    “inquiry” under Section 2(1)(k) of the BNSS. Taking
    cognizance is nothing but an application of judicial
    mind. So long as the application of the judicial mind is
    not exercised, an inquiry cannot commence. It is the
    judicial notice of an offence by the Court which is
    relevant. While doing so, it is presumed that the Court
    would take note of the complaint along with the
    materials placed before it.

    35. The learned ASG placed reliance upon the
    decision of this Court in Hardeep Singh (supra) to
    contend that in the facts of the instant case, the inquiry
    had been initiated upon filing of the prosecution
    complaint on 24.06.2024 which is, admittedly, prior to
    Arjun 8
    56-WP-3159-2025.doc

    the commencement of the BNSS on 01.07.2024. We find
    that the said decision actually militates against the
    submission made by him, and would only quote the
    following paragraphs in the aforesaid decision:

    “26. In Raghubans Dubey v. State of Bihar, AIR 1967
    SC 1167, this Court held: (AIR p. 1169, para 9)

    “9. … once cognizance has been taken by the Magistrate,
    he takes cognizance of an offence and not the offenders;
    once he takes cognizance of an offence it is his duty to
    find out who the offenders really are and once he comes
    to the conclusion that apart from the persons sent up by
    the police some other persons are involved, it is his duty
    to proceed against those persons. The summoning of the
    additional accused is part of the proceeding initiated by
    his taking cognizance of an offence.”

    27. The stage of inquiry commences, insofar as the
    court is concerned, with the filing of the charge-sheet
    and the consideration of the material collected by the
    prosecution, that is mentioned in the charge-sheet for
    the purpose of trying the accused. This has to be
    understood in terms of Section 2(g) CrPC, which defines
    an inquiry as follows:

    “2. (g) ‘inquiry’ means every inquiry, other than a trial,
    conducted under this Code by a Magistrate or court.”

    28. In State of U.P. v. Lakshmi Brahman, (1983) 2
    SCC 372, this Court held that from the stage of filing of
    charge-sheet to ensuring the compliance with the
    provision of Section 207 CrPC, the court is only at the
    stage of inquiry and no trial can be said to have
    commenced.
    The above view has been held to be per
    incuriam in Raj Kishore Prasad v. State of Bihar, (1996)
    4 SCC 495, wherein this Court while observing that
    Section 319(1) CrPC operates in an ongoing inquiry
    into, or trial of, an offence, held that at the stage of
    Section 209 CrPC, the court is neither at the stage of
    inquiry nor at the stage of trial. Even at the stage of
    ensuring compliance with Sections 207 and 208 CrPC, it
    cannot be said that the court is at the stage of inquiry
    because there is no judicial application of mind and all
    that the Magistrate is required to do is to make the case
    ready to be heard by the Court of Session.”

    Arjun 9

    56-WP-3159-2025.doc

    (emphasis supplied)

    36. As rightly held by this Court in Hardeep Singh
    (supra), even the stage of ensuring compliance with
    Sections 207 to 209 of the CrPC, 1973 cannot be termed
    as an inquiry because there is no application of judicial
    mind. In the facts of the instant case, the direction issued
    by the Special Court, vide order dated 24.06.2024, to
    number the complaint and, thereafter, post the matter
    on a future date for hearing on cognizance would
    certainly not come within the purview of an “inquiry”
    under Section 2(1)(k) of the BNSS. In such view of the
    matter, the aforestated contention raised by the learned
    ASG falls to the ground.

    37. As already discussed, though the complaint under
    the PMLA was filed earlier, the cognizance was only
    taken subsequently, on 02.07.2024, by which time the
    BNSS had come into force. Admittedly, the appellant has
    not been heard at the time of taking cognizance. The
    mandate of a legislation which ensures the right of an
    accused to a fair trial, whose liberty is at stake, cannot
    be dispensed with. Thus, the contention of the learned
    ASG that prejudice caused due to non-hearing at the
    stage of cognizance will have to be shown by the
    accused cannot be accepted, as it is not a mere
    irregularity that would attract either Section 506 or 511
    of the BNSS, but is an illegality that would vitiate the
    very proceedings.”

    8. Mrs. Manisha Jagtap, learned Special Counsel for the

    Respondent – ED, does not dispute that the Petitioners were not

    heard by the Special Court before it took cognizance. She does not

    contest the proposition of law laid down in Parvinder Singh

    (supra) and Kushal Kumar (supra).

    Arjun 10

    56-WP-3159-2025.doc

    9. In view of the above, the impugned order, only on the

    ground that the Petitioners were not afforded an opportunity of

    hearing before taking cognizance, is unsustainable. Accordingly,

    the impugned order dated 04.04.2025 passed in PMLA Special

    Case No. 630/2025 is quashed and set aside. As a consequence of

    setting aside the order dated 04.04.2025, the proceedings of ECIR

    bearing No. ECIR/MBZO/II/01/2023 are restored to the file of the

    Special Court at the stage of cognizance.

    10. Mr. Sunny Punamiya, learned Advocate for the Petitioners

    and Ms. Manisha Jagtap, learned Special Counsel for the

    Respondent – ED, submit that the matter before the Special Court,

    is fixed on 28.07.2026.

    11. Ms. Manisha Jagtap, learned Special Counsel for the

    Respondent – ED, submits that the Petitioners should appear

    before the Special Court on 28.07.2026 to avail the opportunity of

    hearing. She submits that the Petitioners should not insist on any

    further Notice.

    12. Mr. Sunny Punamiya, learned Advocate for the Petitioners,

    Arjun 11
    56-WP-3159-2025.doc

    on instructions, states that the Petitioners shall appear before the

    Special Court on 28.07.2026 and that no further notice is

    necessary.

    13. In view of the above, this Petition is partly allowed. The

    Special Court is directed to afford the Petitioners an opportunity of

    hearing from the stage of taking cognizance. The said exercise

    must be completed within 8 weeks from 28.07.2026. Mr. Sunny

    Punamiya and Ms. Manisha Jagtap state that the parties will co-

    operate with the Special Court.

    14. Rule is made absolute in the above-said terms. There shall

    be no order as to costs.

    (ASHWIN D. BHOBE, J.)

    Digitally
    signed by
    ARJUN
    ARJUN KRISHNA
    KRISHNA RODGE
    RODGE Date:

    2026.07.27
    19:45:27
    +0530

    Arjun 12

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