- 1 - HC-KAR NC: 2025:KHC:35887-DB MSA No. 58 of 2018 C/W MSA No. 68 of 2018 MSA No. 69 of 2018 AND 3 OTHERS IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF SEPTEMBER, 2025 PRESENT THE HON'BLE MR. JUSTICE D K SINGH AND THE HON'BLE MR. JUSTICE VENKATESH NAIK T MISCELLANEOUS SECOND APPEAL NO. 58 OF 2018 C/W MISCELLANEOUS SECOND APPEAL NO. 68 OF 2018 MISCELLANEOUS SECOND APPEAL NO. 69 OF 2018 MISCELLANEOUS SECOND APPEAL NO. 70 OF 2018 MISCELLANEOUS SECOND APPEAL NO. 71 OF 2018 MISCELLANEOUS SECOND APPEAL NO. 72 OF 2018 IN MSA No. 58/2018 BETWEEN: S V SRINIVAS S/O SKV CHALAPATHY, AGED ABOUT 41 YEARS R/AT NO.20, 18TH CROSS, 8TH MAIN, MALLESHWARAM, BENGALURU-560085 …APPELLANT (BY SRI. SWAROOP ANAND R., ADVOCATE) AND: JOINT DIRECTOR DIRECTORATE OF ENFORCEMENT, 3RD FLOOR, B BLOCK, BMTC BUILDING, SHANTHINAGAR TTMC, KH ROAD, BENGALURU -560020 …RESPONDENT (BY SRI. MADHUKAR DESPHANDE, SCGSC) Digitally signed by VASANTHA KUMARY B K Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:35887-DB MSA No. 58 of 2018 C/W MSA No. 68 of 2018 MSA No. 69 of 2018 AND 3 OTHERS THIS MSA IS FILED UNDER SECTION 42 OF THE PREVENTION OF MONEY LAUNDERING ACT, 2002, AGAINST THE ORDER DATED 11.05.2018 PASSED IN FPA-PMLA- 446/BNG/2013 ON THE FILE OF THE APPELLATE TRIBUNAL, PREVENTION OF MONEY LAUNDERING ACT, NEW DELHI, DISPOSING THE ABOVE APPEAL HEREBY HOLDING THAT THE APPELLANT SHALL ALSO FILE AN UNDERTAKING BY WAY OF AFFIDAVIT, THAT IN CASE THE APPELLANT IS FINALLY HELD GUILTY IN THE PROSECUTION COMPLAINT, HE SHALL DEPOSIT A SUM OF RS.10.LAKH (TEN LAKH ONLY) WITH THE RESPONDENT AS THE SAID AMOUNT WAS SPENT BY HIM FOR RENOVATION OS HIS FATHER'S PROPERTY AS PER ALLEGED ALLEGATION MADE IN THE PROSECUTION COMPLAINT. ONCE THE FIXED DEPOSIT RECEIPT AND UNDERTAKING ARE FILED BY THE APPELLANT WITH THE RESPONDENT WITHIN THE TIME GRANTED, THE ABOVE NAMED TWO PROPERTIES SHALL STAND RELEASED. THE SAID DIRECTIONS ARE PASSED WITHOUT PREJUDICE AND ALSO CLARIFIED THAT IN CASE THE PROSECUTION COMPLAINT IS DECIDED IN FAVOUR OF S.V.SRINIVAS AND HIS WIFE RESHMA, THE SAID AMOUNT SHALL BE RELEASED TO THEM BY THE RESPONDENT IMMEDIATELY AND ETC. IN MSA NO. 68/2018 BETWEEN: THE JOINT DIRECTOR DIRECTORATE OF ENFORCEMENT, BENGALURU ZONAL OFFICE, 3RD FLOOR, B BLOCK, BMTC, SHANTINAGAR-TTMC, KH ROAD, SHANTINAGAR, BENGALURU -560 027 REP. BY ITS ASSISTANT DIRECTOR MR.M.N.THYAGARAJ. ...APPELLANT (BY SRI. MADHUKAR M DESHPANDE., ADVOCATE) AND: SRI S K V CHALAPATHI - 3 - HC-KAR NC: 2025:KHC:35887-DB MSA No. 58 of 2018 C/W MSA No. 68 of 2018 MSA No. 69 of 2018 AND 3 OTHERS AGED BY MAJOR, R/AT NO.20, 18TH CROSS, 8TH MAIN, MALLESHWARAM, BENGALURU -560 055. ...RESPONDENT (BY SRI. SWAROOP ANAND R., ADVOCATE) THIS MSA IS FILED UNDER SEC. 42 OF THE PREVENTION OF MONEY LAUNDERING ACT, 2002 PRAYING TO SET ASIDE THE IMPUGNED ORDER DATED 11.05.2018 PASSED BY THE HONORABLE APPELLATE TRIBUNAL (THE PREVENTION OF MONEY LAUNDERING ACT), NEW DELHI, IN FPA-PMLA-449/BNG/2013 ALLOWING THE APPEAL AND SETTING ASIDE THE IMPUGNED ORDER AGAINST THE APPELLANT, CONSEQUENTLY THE PROVISIONAL ATTACHMENT ORDER WITH REGARD TO PRESENT APPELLANT IS ALSO QUASHED. THIS PROPERTY IS RELEASED FORTHWITH. IN MSA NO. 69/2018 BETWEEN: THE JOINT DIRECTOR DIRECTORATE OF ENFORCEMENT, BENGALURU ZONAL OFFICE, 3RD FLOOR, B BLOCK, BMTC, SHANTINAGAR-TTMC, KH ROAD, SHANTINAGAR, BENGALURU -560 027 REP BY ITS ASSISTANT DIRECTOR MR.M.N.THYAGARAJ. ...APPELLANT (BY SRI. MADHUKAR DESHPANDE., ADVOCATE) AND: SMT. SARASWATHI W/O SRI S.K.V. CHALAPATHY, AGED BY MAJOR, R/AT NO.20, 18TH CROSS, - 4 - HC-KAR NC: 2025:KHC:35887-DB MSA No. 58 of 2018 C/W MSA No. 68 of 2018 MSA No. 69 of 2018 AND 3 OTHERS 8TH MAIN, MALLESHWARAM, BENGALURU -560 055. ...RESPONDENT (BY SRI. SWAROOP ANAND R., ADVOCATE) THIS MSA IS FILED UNDER SECTION 42 OF THE PREVENTION OF MONEY LAUNDERING ACT, 2002 PRAYING TO SET ASIDE THE IMPUGNED ORDER DATED 11.05.2018 PASSED BY THE HONBLE APPELLATE TRIBUNAL(THE PREVENTION OF MONEY LAUNDERING ACT) NEW DELHI IN FPA-PMLA-448/BNG/2013 (ANNEXURE - A) AND TO GRANT SUCH OTHER RELIEFS TO THE APPELLANT,IN THE INTEREST OF JUSTICE AND EQUITY. IN MSA NO. 70/2018 BETWEEN: THE JOINT DIRECTOR DIRECTORATE OF ENFORCEMENT BENGALURU ZONAL OFFICE, 3RD FLOOR, B BLOCK, BMTC SHANTINAGAR-TTMC, KH ROAD, SHANTINAGAR, BENGALURU - 560027 REPRESENTED BY ITS ASSISTANT DIRECTOR MR M N THYAGARAJ ...APPELLANT (BY SRI. MADHUKAR DESHPANDE., ADVOCATE) AND: SMT. SARASWATHI W/O SRI S K V CHALAPATHY AGED BY MAJOR, RESIDING AT NO.20, 18TH CROSS 8TH MAIN, MALLESHWARAM BENGALURU 560055 ...RESPONDENT (BY SRI. SWAROOP ANAND R., ADVOCATE) - 5 - HC-KAR NC: 2025:KHC:35887-DB MSA No. 58 of 2018 C/W MSA No. 68 of 2018 MSA No. 69 of 2018 AND 3 OTHERS THIS MSA IS FILED UNDER SEC.42 OF THE PREVENTION OF MONEY LAUNDERING ACT, 2002 PRAYING TO SET ASIDE THE IMPUGNED ORDER DATED 11.05.2018 PASSED BY THE HONBLE APPELLATE TRIBUNAL (THE PREVENTION OF MONEY LAUNDERING ACT), NEW DELHI, INFPA-PMLA-456/BNG/2013 (ANNEXURE - A) AND TO GRANT SUCH OTHER RELIEFS TO THE APPELLANT, IN THE INTEREST OF JUSTICE AND EQUITY. IN MSA NO. 71/2018 BETWEEN: THE JOINT DIRECTOR DIRECTORATE OF ENFORCEMENT, BENGALURU ZONAL OFFICE, 3RD FLOOR, B BLOCK, BMTC, SHANTINAGAR-TTMC, K.H. ROAD, SHANTHINAGAR, BENGALURU -560 027, REPRESENTED BY ITS ASSISTANT DIRECTOR, MR. M. N. THYAGARAJ. ...APPELLANT (BY SRI. MADHUKAR M DESHPANDE., ADVOCATE) AND: SRI. S. V. SRINIVAS S/O. SRI. S. K.V. CHALAPATHY, AGED BY MAJOR, RESIDING AT NO. 20, 18TH CROSS, 8TH MAIN, MALLESHWARAM, BENGALURU -560 055. ...RESPONDENT (BY SRI. SWAROOP ANAND R., ADVOCATE) THIS MSA IS FILED UNDER SECTION 42 OF THE PREVENTION OF MONEY LAUNDERING ACT, 2002 PRAYING TO SET ASIDE THE IMPUGNED ORDER DATED 11.05.2018 PASSED BY THE HON'BLE APPELLATE COMP.Y.11,4,2022TRIBUNAL(THE PREVENTION OF MONEY - 6 - HC-KAR NC: 2025:KHC:35887-DB MSA No. 58 of 2018 C/W MSA No. 68 of 2018 MSA No. 69 of 2018 AND 3 OTHERS LAUNDERING ACT,) NEW DELHI IN FPA-PMLA- 446/BNG/2013 (ANNEXURE A) AND TO GRANT SUCH OTHER RELIEFS TO THE APPELLANT, IN THE INTEREST OF JUSTICE AND EQUITY. IN MSA NO. 72/2018 BETWEEN: THE JOINT DIRECTOR DIRECTORATE OF ENFORCEMENT BENGALURU ZONAL OFFICE, 3RD FLOOR, B BLOCK, BMTC, SHANTINAGAR-TTMC, KH ROAD, SHANTINAGAR BENGALURU 560027 REPRESENTED BY ITS ASSISTANT DIRECTOR MR M N THYAGARAJ ...APPELLANT (BY SRI. MADHUKAR DESHPANDE., ADVOCATE) AND: SMT. RESHMA SRINIVAS W/O SRI S V SRINIVAS RESIDING AT NO.20, 18TH CROSS 8TH MAIN, MALLESHWARAM BENGALURU 560055 ...RESPONDENT (BY SRI. SWAROOP ANAND R., ADVOCATE) THIS MSA IS FILED UNDER SEC/42 OF THE PREVENTION OF MONEY LAUNDERING ACT, 2002 AGAINST THE ORDER DATED 11.05.2018 PASSED IN FPA-PMLA- 447/BNG/2013 ON THE FILE OF THE APPELLATE TRIBUNAL, PREVENTION OF MONEY LAUNDERING ACT, NEW DELHI DISPOSING ALL THE APPEALS AND PENDING MPS/APPLICATIONS AND ETC. THESE APPEALS, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 7 - HC-KAR NC: 2025:KHC:35887-DB MSA No. 58 of 2018 C/W MSA No. 68 of 2018 MSA No. 69 of 2018 AND 3 OTHERS CORAM: HON'BLE MR. JUSTICE D K SINGH and HON'BLE MR. JUSTICE VENKATESH NAIK T ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE D K SINGH) IN M.S.A No.58 OF 2018: The present appeal is filed by the appellant under Section 42 of the Prevention of Money Laundering Act, 2002 (for short ‘the PMLA Act’). 2. Being aggrieved by the order dated 11.05.2018 passed by the Appellate Tribunal, Prevention of Money Laundering Act at New Delhi in MP-PMLA-3146/BNG/2017, MP-PMLA-1595/BNG/2015, FPA-PMLA-446/BNG/2013, the miscellaneous appeal has been filed. 3. The Adjudicating Authority passed an attachment order against the four properties belonging to the family of the appellant. The appellant was arrayed as - 8 - HC-KAR NC: 2025:KHC:35887-DB MSA No. 58 of 2018 C/W MSA No. 68 of 2018 MSA No. 69 of 2018 AND 3 OTHERS accused No.3 in the schedule offence, which was numbered as SPL CC 135/2011. 4. The charge sheet against him was quashed by this Court in Crl.P.No.5102/2015. He was also arrayed as an accused in the Section 45 complaint filed by the Joint Director numbered as SPL CC 124/2014. 5. It is not in dispute that the appellant has been discharged in the PMLS case filed under Section 45 of the PMLA Act. The Tribunal while considering the submissions and the record, gave the direction that the appellant would deposit Rs.4,12,112/- with Joint Director by way of fixed deposit and he would file an undertaking by way of an affidavit that in the case the appellant was finally held guilty in the prosecution complaint filed under Section 45 of the PMLA Act, he would deposit a sum of Rs.10,00,000/- with the Joint Director and the said amount was spent by him for renovation of his father’s - 9 - HC-KAR NC: 2025:KHC:35887-DB MSA No. 58 of 2018 C/W MSA No. 68 of 2018 MSA No. 69 of 2018 AND 3 OTHERS property as per the alleged allegation made in the complaint. 6. In pursuance to the direction issued by the Appellate Tribunal, the petitioner had deposited a sum of Rs.4,12,112/- and also filed an affidavit of undertaking as directed by the Tribunal. 7. As of the day, there are no complaints pending against the petitioner and he is not facing prosecution either for the schedule offence or under the PMLA Act, as much as the criminal proceedings in respect of the schedule offence came to be quashed by this Court and he stands discharged in the proceedings under Section 45 of the PMLA Act. 8. Learned counsel for the appellant therefore submits that, in view of the subsequent development, the direction issued by the Tribunal for making deposit of Rs.4,12,112/- by filing an undertaking by way of affidavit of making deposit of Rs.10,00,000/- in case the petitioner - 10 - HC-KAR NC: 2025:KHC:35887-DB MSA No. 58 of 2018 C/W MSA No. 68 of 2018 MSA No. 69 of 2018 AND 3 OTHERS could have been convicted had become inconsequence and the petitioner may be permitted to withdrawn an amount of Rs.4,12,112/- deposited by him in pursuance to the direction issued by the PMLA Act. 9. Mr. Madhukar Deshpande, learned counsel appearing for the respondent does not dispute the factual aspect of the petitioner having been discharged in the PMLA proceedings and the criminal proceedings has been quashed by this Court for schedule offences. He also submits that Rs.20,00,000/- amount received by the appellant was part of the proceeds of crime, which he spent for renovation of the house of his father and alleged medical expenses, which he could not prove. He submits that the proceedings are culminated against Katta Subramanya Naidu the main accused, the amount for which the attachment order was passed cannot be released in favour of the appellant. - 11 - HC-KAR NC: 2025:KHC:35887-DB MSA No. 58 of 2018 C/W MSA No. 68 of 2018 MSA No. 69 of 2018 AND 3 OTHERS 10. We considered the submissions of the advocate on behalf of the learned counsel for the appellant Sri.Swaroop Anand R., as well as Mr. Madukar Deshpande learned counsel appearing for the respondent. 11. The Enforcement Directorate has not challenged the order of discharge in the PMLA proceedings against the petitioner till date. 12. In view of the aforesaid fact we dispose of the appeal permitting the petitioner to file an application before the PMLA Special Court under Section 8(6) of the PMLA Act, for withdrawing the amount of Rs.4,12,112/-, which he has deposited in pursuance to the direction issued by the PMLA Tribunal in its order dated 11.05.2018 and the Special Court till decide the application in accordance with law. So far as the direction of filing an undertaking for making deposit of Rs.10,00,000/- in case of the appellant’s conviction that has lost its relevance in - 12 - HC-KAR NC: 2025:KHC:35887-DB MSA No. 58 of 2018 C/W MSA No. 68 of 2018 MSA No. 69 of 2018 AND 3 OTHERS as much as the petitioner stands discharged with PMLA case. 13. With the aforesaid liberty for filing the application, we dispose of this appeal. IN M.S.A.Nos.68/2018, 69/2018, 70/2018, 71/2018 AND 72/2018: In view of the judgement passed in the M.S.A.No.58/2018, nothing survives in these appeals and therefore, we dispose of these appeals in terms of the judgement passed in M.S.A.No.58/2018. Sd/- (D K SINGH) JUDGE Sd/- (VENKATESH NAIK T) JUDGE SSB