New Delhi: The Karnataka high court on Wednesday allowed Amnesty International India to withdraw Rs 60 lakh from its bank accounts after rejecting the Enforcement Directorate’s objections.
According to a report in LiveLaw, a bench of Justice P.S. Dinesh Kumar allowed the petition by the human rights body which challenged the communication issued by the national agency to banks, directing them to freeze its accounts. “Petition is partly allowed, the petitioner is allowed to withdraw an amount of Rs 60 lakh from the bank accounts,” the bench said
In September, Amnesty International India had said that it would approach the Karnataka high court against the freezing of its bank accounts and had said that action by the authorities amounted to an “incessant witch-hunt”. The human rights body also alleged that it was forced to shut its operations in the country, which led to 150 employees losing their jobs, after the Enforcement Directorate froze the organisation’s bank accounts.
Appearing for Amnesty International India, senior advocate Ravivarma Kumar while praying for interim relief said that the matter was not taken before the adjudicating authority within 30 days as prescribed. “Seizure has taken place and no reasons have been recorded and no order is passed and within 30 days matter is not taken before the adjudicating authority as prescribed. Therefore, it is ultra vires of section 17 (1) (A) of the Prevention of Money Laundering Act (PMLA),” Kumar said.
“This is a very serious matter. Repeatedly we are being harassed. We are only interested in working for human rights,” he said and added that the donations in question were for “spreading human rights and upholding human rights”.
” Even in the attachment order passed on November 26, there is no whisper that any one of the accounts is tainted with a particular donation under FEMA or PMLA Act,” Kumar submitted.
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He added that the maximum time by statute under the PMLA was 30 days “The PMLA Act is a self contained code it regulates all powers including incidental powers. All these powers are self limiting powers operating for a period of 30 days.”
“I have made out a prima facie case, balance of convenience is in my favour and the organisation will be choked if the interim order will not be made. It will be a great fraud to any human rights activities carried out in this country, which is a constitutional value,” Kumar said.
Appearing for the Enforcement Directorate, Additional Solicitor General of India for Karnataka high court, Nargund M.B., arguing against granting any relief, said that the petitioners had an alternate remedy under the statute before the adjudicating authority and then the appellate authority before approaching the high court.
“We are in the process of investigations. During that process the officer of the department has communicated to the bank and thus the proceeds of the crime in the bank account are frozen. Since the matter was immediately brought to the notice of the court we could not proceed further,” he said.
“These proceeds of the crime are at this point being used according to them for creating awareness in the society. According to us, it is to create problems in Indian society, ” Nargund said.
Previously, the Enforcement Directorate had refused to consider the court’s suggestion about whether it was willing to allow the petitioner to make statutory dues like salaries, tax payments, from the five bank accounts which were mentioned in ED’s communication to banks but not attached by its order passed on November 26.