MANRAJ D D & ORS v ICAC 2003 SCJ 75 2003 MR 41 IN THE SUPREME COURT OF MAURITIUS (IN CHAMBERS) In the matter

of :SRN: 317/03 MANRAJ DHARAM DEV App !"#$% V&'()( THE INDEPENDENT COMMISSION A*AINST CORRUPTION R&(p+$,&$% AND SRN: 325/03 RAMDE-AR RAVI .UMAR PRASAD App !"#$% V&'()( THE INDEPENDENT COMMISSION A*AINST CORRUPTION R&(p+$,&$% AND SRN: 330/03 CINE NET-OR. /TD App !"#$% V&'()( THE INDEPENDENT COMMISSION A*AINST CORRUPTION R&(p+$,&$% AND SRN: 331/03

CINE MA0 /TD App !"#$% V&'()( THE INDEPENDENT COMMISSION A*AINST CORRUPTION R&(p+$,&$% AND SRN: 380/03 OCEAN VI//AS /TD App !"#$% V&'()( THE INDEPENDENT COMMISSION A*AINST CORRUPTION R&(p+$,&$% AND SRN: 326/03 THE MAURITIUS COMMERCIA/ BAN. /IMITED App !"#$% J),12&$% -HAT ARE THESE APP/ICATIONS A// ABOUT3 The Independent Commission !ainst Corr"ption# $IC C% is &ond"&tin!

an a''e!ed &rimina' fra"d pro(e into the f"nds deposited () the N*+ at the ,C.hi&h f"nds a''e!ed') ended "p fortif)in! the finan&ia' stren!th of some &ompanies and persons/ IC C is an emanation of the 0er) ne. *re0ention of Corr"ption the ne. &t 2002 $*1C % and its po.ers are deri0ed from it/ 2ate afternoon &t/ The pp'i&ation .as in Cham(ers (efore me/ It so"!ht an on +rida) 21st +e(r"ar)# IC C &ame "p .ith an app'i&ation "nder se&tion 56 of tta&hment 1rder to atta&h the f"nds of a 'ist of 10 &ompanies and 5 indi0id"a's/ It .as the &ase of IC C that the f"nds had (een fra"d"'ent') transferred to those

&ompanies and persons and that those &ompanies and persons sho"'d ha0e !"i't) 3no.'ed!e imp"ted to them/

ICAC4S APP/ICATION FOR AN ATTACHMENT ORDER The !ist of the pp'i&ation for the tta&hment 1rder .as thatICAC .. has reasonable ground that the . companies and

persons have received the proceeds of crime and those companies and persons had reasonable grounds for suspecting that the sums of money credited to their respective accounts derived in whole and directly from a crime and have thus committed an offence under section 3 of the Financial Intelligence and Anti- oney !aundering Act "##".$ The other a0erments are of 'esser &onse4"en&e and the) .i'' (e dea't .ith in &o"rse of post/ The app'i&ation .as e% parte# that is in the a(sen&e of the part) a!ainst .hom the orders .ere so"!ht/ s per 'a.# I had to (e satisfied that the order .as .arranted/ The affida0its a0erred 5fra"d"'ent intent/6 I en4"ired .hether the IC C had e0iden&e of 5fra"d"'ent intent/6 I .as !i0en to "nderstand that IC C had or tho"!ht it had/ The order .as# a&&ordin!')# !ranted/ There .as no do"(t in m) mind that IC C 3ne. perfe&t') .e'' .hat it .as doin! a'' the more so .hen the affida0its referred to the &ompanies and persons as 5s"spe&ts/6 CHA//EN*E OF ICAC4S ATTACHMENT ORDER B5 A REVOCATION ORDER +i0e of the &ompanies and persons .ere st"n! to the 4"i&3/ The) .ere:

7haram 7e0 ,anra89 Ra0i :"mar Ramde.ar9 Cine Ne.or3 2td9 Cine ,a; 2td9 < 1&ean =i''as 2td/

The) are referred to as app'i&ants in these pro&eedin!s/ The) are see3in! a Re0o&ation 1rder of the ori!ina' tta&hment 1rder/ MR MANRA67 ICAC IS ABUSIVE8 ARBITRAR58 OPPRESSIVE AND VIO/ATIN* FUNDAMENTA/ RI*HTS The &ha''en!e of app'i&ant No 1 is that IC C has imp"ted 5fra"d"'ent intent6 to him9 that its a&tion is 5ar(itrar)# oppressi0e# "nreasona('e and in (rea&h of his f"ndamenta' ri!hts/6 In his affida0it# he has !i0en his 0ersion of fa&ts# his de!ree or 'a&3 of 3no.'ed!e of re'e0ant fa&ts and his interpretation of the 'a./ >e a0ers that he had (een a dire&tor and pro0ider of professiona' ser0i&es to 2 &ompanies: n!e' -ea&h Resort 2td/ and 7ire&t *roperties 2td/ ("t he resi!ned on 1? Septem(er 2000/ The e0identia' ("rden thereafter fe'' on IC C to re("t these/ In non 'e!a'ese 'an!"a!e# the (a'' fe'' in IC C@s &amp () 'a. to sho. that the &ompanies and persons had the &"'pa('e 5fra"d"'ent intent/6 IC C responded to the affida0it of ,r ,anraA () a &o"nter-affida0it on Bednesda) affirmed () ss/ Spt/ Coot"n# posted at IC C/ The 'atter re-affirms that he has reasona('e !ro"nds to s"spe&t that app'i&ant has re&ei0ed pro&eeds

of &rime9 !i0en instr"&tions for the transfer of mone) : i/e/ Rs/ 2 m from one (an3 a&&o"nt to another and he has &o0ered "p fra"d"'ent misappropriation of f"nds and mone) 'a"nderin!/ >e a'so &on&'"des () sa)in! that more to re0ea' .o"'d pre8"di&e the en4"ir)/ MR RAMDE-AR7 PROFESSIONA/ -OR. DONE AND PROFESSIONA/ FEES PAID ,r Ramde.ar for his part states in his affida0it of &ha''en!e# in s"m# that he has no persona' 3no.'ed!e of fa&ts a0erred () IC C/ >e has a&ted in his professiona' &apa&it) for some of the persons: name')# ,r Teeren ppasam)# s n!e' -ea&h Resort 2td and 7ire&t *roperties 2td/ >e .as &ompan) Se&retar) of the 'atter to "nti' 20 ,a) 2002 for .hi&h he .as paid his professiona' fees/ s"&h# he .as ne0er in0o'0ed in the mana!ement or administration of the entities/ >e is neither a shareho'der nor a dire&tor of an) of the entities referred to/ >e admits that drafts of the ,a"riti"s Commer&ia' -an3# the State Commer&ia' -an3 and the >on! :on! and Shan!ai -an3 transit in his hands ("t it is in the norma' &o"rse of ("siness/ >e does not 3no.# nor does he ha0e reason to (e'ie0e# that the drafts &an (e tra&ed to an) tainted ori!in/ >e f"rther a0ers that IC C has (een 0a!"e# impre&ise# "n&ertain and that the pretensions of IC C ha0e no dire&t or indire&t (earin! on him persona'') and do not spe&if) in an) manner .hatsoe0er ho. he is 'in3ed or in0o'0ed .ith the a''e!ed (rea&h of the 'a./ IC C responds to the a(o0e in its &o"nter-affida0it () statin! 2 thin!s spe&ifi&a''): that IC C has &ome a&ross an offi&e &he4"e to the order of ,a"riti"s Te'e&oms 2td for the pa)ment# amon!st others# of app'i&ant@s te'ephone (i''s/ The en4"ir) has a'so re0ea'ed that pp'i&ant has different (an3 a&&o"nts at the ,a"riti"s Commer&ia' -an3 representin! s"(stantia' s"ms of mone)/ &&ordin! to the in0esti!ation# there is e0iden&e that one of the s"spe&ts in the &ase .as on or a(o"t 10 +e(r"ar) 2003 in the offi&e of app'i&ant for the

p"rpose of draftin! a 'etter in re'ation to a s"m of Rs 25 m on (eha'f of the N*+ at the ,C-/ The affida0it a'so states that ,r Ramde.ar .as persona'') ta3in! possession of the offi&e &he4"es iss"ed () ,C-# that after pri' 2002# app'i&ant persona'') too3 possession of offi&e &he4"es dra.n to the order of >S-C and State -an3 of ,a"riti"s and presented to the re'e0ant offi&ers at the said (an3s and effe&ted s"(se4"ent on.ard transfer to other a&&o"nt in other (an3s in&'"din! o0erseas (an3s/ CINE NET-OR.7 -E .NO- NOTHIN* ABOUT NPF MONE5 The third app'i&ant is Cine Net.or3 2td/ Its 1ffi&e ,ana!er and Compan) Se&retar)# ,ohammed -ashir NaAeer# has affirmed an ffida0it to the effe&t that he is the se&retar) and the shareho'ders are : 7r ,ohammed Sidi&3 Chadee# ,rs >annah Chad) and ,r Teeren ppasam)/ >e a0ers that pp'i&ant ne0er had an) dea'in! .ith the N*+ nor had he e0er (een informed that this .as the &ase# if at a''/ >e a0ers that IC C fai'ed to spe&if) ho.# .hen# () .hom and in .hat &ir&"mstan&es mone) a''e!ed') misappropriated .as &redited to a&&o"nts/ pp'i&ant@s pp'i&ant &ha''en!es the 50ires6 of IC C in app')in! for the order/

pp'i&ant a'so a0ers that IC C .as not empo.ered or entit'ed to app') for s"&h an order .hi&h 5does not rest on an) so"nd 'e!a' (asis and is manifest') dis&riminator)# ar(itrar)# a("si0e and oppressi0e/6 IC C has rep'ied to the 0ersion of and stated that one Teeren re0ea's that Teeren this pp'i&ant () .a) of &o"nter-affida0it

ppasam) is one of the dire&tors/ In0esti!ation

ppasam) has (een in0o'0ed in mone) 'a"nderin! and that

pp'i&ant has (enefited from the pro&eeds of the &rime/ IC C a'so hides

(ehind the &onfidentia'it) of the en4"ir) and .o"'d not .ant to dis&'ose more/

CINEMA007 -E .NO- NOTHIN* ABOUT NPF MONE5 The fo"rth pp'i&ant is Cinema;; 2td/ Its 1ffi&e ,ana!er and Compan)

Se&retar)# ,ohammed -ashir NaAeer# has affirmed an affida0it to the effe&t that he is the se&retar) and the shareho'ders are: Doo'am :han Chad)# 7r ,ohammed Sidi&3 Chadee# ,rs >annah Chad)# ,r Essan :han Chad)# ,r Ch"'3an Chad) and 7ire&t *roperties 2td/ >e a0ers that app'i&ant ne0er had an) dea'in! .ith the N*+ nor had he e0er (een informed that this .as the &ase# if at a''/ >e a0ers that IC C fai'ed to spe&if) ho.# .hen# () .hom and in .hat &ir&"mstan&es mone) a''e!ed') misappropriated .as &redited to app'i&ant@s a&&o"nts/ app'i&ant &ha''en!es the 50ires6 of IC C in app')in! for the order/ pp'i&ant has a0erred that the IC C app'i&ation .as 5"nreasona('e# "n8"stified# dis&riminator)# ar(itrar)# a("si0e# oppressi0e and in (rea&h of the f"ndamenta' ri!hts/6 s it is .ith the third app'i&ant# so it is .ith the fo"rth/ IC C has rep'ied that one Teeren that Teeren ppasam) is one of the dire&tors/ In0esti!ation has re0ea'ed ppasam) has (een in0o'0ed in mone) 'a"nderin! and that

Cinema;; has (enefited from the pro&eeds of the &rime/ IC C .o"'d not .ant to dis&'ose more for fear of pre8"di&in! the en4"ir)/ OCEAN VI//AS /%,7 MISTA.EN IDENTIT5 1&ean =i''as 2td is the 5th app'i&ant/ Its misfort"ne .as to ha0e ta3en on the name of a pre0io"s &ompan) r"nnin! () that name .hi&h had e;isted at the materia' time/ It has nothin! to do .ith the fa&ts of the N*+-,C- matter/ In this parti&"'ar &ase# IC C fina'') &on&eded that it .as a &ase of mista3en identit)/ IC C ma) &onsider itse'f '"&3) not to ha0e earned the .rath of this pp'i&ant for a home.or3 (ad') done/ The tta&hment 1rder .ith respe&t to this Compan) .as d"') re0o3ed# IC C not o(8e&tin!/

-HAT IS THE /A-3 F"estions of 'a. and fa&ts .ere raised/ The) re'ated to pro&ed"re as .e'' as s"(stan&e/ +irst# as to pro&ed"ra' o(8e&tions/ 2earned Co"nse' for IC C s"(mitted that I had no 8"risdi&tion to &ontin"e hearin! the Re0o&ation pp'i&ations inasm"&h as it .o"'d (e as tho"!h I .as tta&hment sittin! on appea' a!ainst m) o.n findin!s of 21 st +e(r"ar) for the

1rder/ 2earned Co"nse' s"(mitted that it is some other C"d!e in Cham(ers .ho sho"'d ha0e the &ompeten&e to hear these app'i&ations/ 1n&e I .as satisfied .ith an e% parte app'i&ation# .hi&h .as !ranted# as in this &ase# that .as the end of the matter/ I (e&ame functus officio/ nd an) app'i&ation &ha''en!in! that order sho"'d ha0e (een treated () another C"d!e# ran their ar!"ment/ I .as dismissi0e of this ar!"ment/ The 0ie. I ta3e of the matter is as fo''o.s/ n e% parte app'i&ation is ne&essari') a one-part) app'i&ation on one 0ersion of fa&ts and# in an ad0ersaria' s)stem of 8"sti&e# an e;&eption for its s"mmar) and ar(itrar) nat"re/ It .o"'d &ompo"nd ar(itrariness to e;pe&t those dire&t') affe&ted () the order !i0en (ehind their (a&3 to !o &hasin! another C"d!e for the p"rpose of p"ttin! in theirs/ S"&h an interpretation .o"'d (e a !reat he'p to in0esti!ators ("t .hether it .o"'d he'p &itiAens# and .orse# the esta('ishment of a fair 8"sti&e s)stem# I am not so s"re/ It is as !ood as sa)in! that in o"r s)stem of 'a.# a"to&rati& attit"des of instit"tions sho"'d ride and pride o0er the demo&rati& ri!hts of &itiAens/ That .o"'d not (e m) idea of a fair tria'/ The &on&ept of fair tria' in&'"des an important e'ement in toda)@s &ase-'a.: that of e4"a'it) of arms/ Co"rt that stands (et.een the &itiAen and the State or ma&hineries of the State sho"'d ens"re that the State or State instit"tions# on the one hand# and the &itiAen# on the other# fa&e ea&h other on 'e0e' terms/ Bhere

8"di&ia' pro&ess is seen to !i0e an "nfair ad0anta!e to the State or the State instit"tions o0er the &itiAen for .hose 8"sti&e the State# the State instit"tions or their ma&hiner) are the sa&red repositor) "nder the Constit"tion# the Co"rts .o"'d (e 'a"nderin! 8"sti&e not de'i0erin! 8"sti&e/ The prin&ip'e of e4"a'it) of arms as one of the e'ements of the (roader &on&ept of fair tria' is .e'' i''"strated in a series of de&isions of the E"ropean Co"rt of >"man Ri!hts# startin! .ith Alvis v Council &'(3 )C* +'/ The most re&ent is that of ,omanic-y v. .lova-ia &3 /*C0 "###/ : .as a S'o0a3ian nationa'/ >e had (een dismissed from .or3 for a''e!ed indis&ip'ine/ >e .as not !i0en ade4"ate time to st"d) the fi'e prior to the hearin! of the &ase a!ainst him/ >e had 'itt'e possi(i'it) to &omment "pon the statements .hi&h .itnesses made a!ainst him/ In addition# some e0iden&e .as add"&ed .itho"t an) opport"nit) !i0en to him to re("t same/ >e had notified the Co"rt that he .o"'d not (e a('e to attend for hea'th reasons/ None the 'ess# the Co"rt &onsidered him in defa"'t and pro&eeded to &omp'ete the &ase in his a(sen&e/ The Co"rt he'd that S'o0a3ia had 0io'ated rti&'e 6 se&tion 1 .hi&h

enshrined the prin&ip'e of fair tria' in not a''o.in! : e4"a'it) of arms/ This prin&ip'e re4"ired that ea&h part) sho"'d (e afforded a reasona('e opport"nit) to present his or her &ase "nder &onditions that did not p'a&e him or her at a s"(stantia' disad0anta!e vis-a vis his or her opponent/ rti&'e 6# Se&tion 1 of the E"ropean Con0ention on >"man Ri!hts !"arantees &itiAens of State *arties a fair tria'/ 1"r Constit"tion !"arantees o"r &itiAens fair tria' e4"a'')/ The &on&ept of a fair hearin! a'so imp'ies the ri!ht to ad0ersaria' pro&eedin!s/ The ri!ht to ad0ersaria' pro&eedin!s in&'"de the ri!ht to (e present#

the ri!ht to 3no. .hat e0iden&e one has to re("t# the ri!ht to &omment on e0iden&e and o(ser0ations fi'ed# .ith a 0ie. to inf'"en&in! the Co"rt@s de&ision/ The Co"rt@s ro'e for the p"rpose of as&ertainin! .hether the pro&eedin!s are fair as a .ho'e is not a passi0e one/ The appearan&e of a fair administration of 8"sti&e is as 0ita' as the fair administration of 8"sti&e itse'f/ In the &ase# a&&ordin!')# ha0in! re!ard to the re4"irements of the prin&ip'e of the e4"a'it) of arms and to the ro'e of appearan&es in determinin! .hether the) had (een &omp'ied .ith# the Co"rt fo"nd that the pro&ed"re fo''o.ed did not ena('e the app'i&ant to parti&ipate proper') in the pro&eedin!s and th"s depri0ed him of a fair hearin! .ithin the meanin! of the Con0ention/ Se&tion 1 and a.arded EGR 1000 dama!es a!ainst S'o0a3ia/ The se&ond re&ent &ase .here the prin&ip'e of 5e4"a'it) of arms6 .as app'ied is igon v 1oland &3 /*C0 "##". The C"d!es of the rti&'e 6# E"ropean Co"rt of C"sti&e de&ided that there had (een a 0io'ation of

The app'i&ant# Bi'to'd ,i!on# a *o'ish nationa'# .as detained on remand d"rin! &rimina' pro&eedin!s (ro"!ht a!ainst him on s"spi&ion of a!!ra0ated fra"d# fa'sifi&ation of do&"ments and iss"in! (ad &he4"es/ The &ase .as 'od!ed .ith the E"ropean Commission of >"man Ri!hts and transmitted to the Co"rt for its hearin!/ The app'i&ant a''e!ed# in parti&"'ar# that the pro&eedin!s to re0ie. this detention on remand had not (een ad0ersaria' and that the e4"a'it) of the parties in these pro&eedin!s had not (een o(ser0ed sin&e neither he nor his &o"nse' had (een a''o.ed to attend hearin!s (efore the :ra3o. Co"rt of ppea' &on&ernin! the pro'on!ation of his detention on remand# .hereas the prose&"tor had (een a('e to do so/ The app'i&ant a'so &omp'ained that in the pro&eedin!s &on&ernin! the re0ie. of the 'a.f"'ness of his detention# neither he nor his &o"nse' had (een !ranted ade4"ate a&&ess to the &ase-fi'e of the in0esti!ation/ >e re'ied on rti&'e 5# Se&tion H $ri!ht to 'i(ert) and se&"rit)% of the E"ropean Con0ention on >"man Ri!hts/ The Co"rt &ommented on the fa&t that e4"a'it) of arms (et.een the parties ran thro"!ho"t the .ho'e pro&ess# from the (e!innin! of an in0esti!ation# thro"!h tria' sta!e and appea' sta!e ri!ht "p to the (itter end/ Th"s# a Co"rt e;aminin! an appea' a!ainst detention m"st pro0ide !"arantees of a 8"di&ia' pro&ed"re/ The pro&eedin!s m"st (e ad0ersaria' and m"st ade4"ate') ens"re that there is 5e4"a'it) of arms6 (et.een the parties/ The Co"rt he'd that there had (een a 0io'ation of rti&'e 5# Se&tion H of the Con0ention () *o'and in not ens"rin! e4"a'it) of arms/ the Co"rt is e'o4"ent: It thus follows that2 in view of the dramatic impact of deprivation of liberty on the fundamental rights of the person concerned2 proceedings conducted under Article 32 .ection + of the Convention should in principle The prin&ip'e is of per0asi0e app'i&ation from in0esti!ation to fina' de&ision/ The fo''o.in! remar3 of

also meet2 to the largest e%tent possible under the circumstances of an ongoing investigation2 the basic re4uirements of a fair trial2 such as the right to adversarial procedure.$ 1ne ma) a'so refer to the &ase of 5eumeister v Austria6 &'7' & )/** '& on the a(o0e iss"e/ The s&epti& ma) .onder ho. these de&isions of the E"ropean Co"rt of C"sti&e are re'e0ant to o"r ,a"ritian 'a./ Be do not ha0e a re!iona' fri&an Co"rt of C"sti&e for >"man Ri!hts/ Be do not ha0e a pan-Common.ea'th Co"rt .here h"man ri!hts iss"es ma) (e ta3en to o0ersee ho. o"r demo&ra&) "nder the R"'e of 2a. .or3s/ Indeed# at &ertain times# .e .ish .e had/ nd .e ma) .ish to hope that .e sha''/ >o.e0er# .ith it or .itho"t it# h"man ri!hts standards of 'a. are for "ni0ersa' app'i&ation and sho"'d not (e (ede0i''ed () &on0entiona' ideas on 8"risdi&tiona' so0erei!nt)/ The R"'e of 2a. is not a paro&hia' ("t a "ni0ersa' &on&ept/ s has (een stated in the -an!a'ore *rin&ip'es en"n&iated in the C"di&ia' Co''o4"i"m $1?88% of Common.ea'th C"d!es on the 7omesti& pp'i&ation of >"man Ri!hts Norms: Fundamental human rights and freedoms are inherent in all human-ind and find e%pression in constitutions and legal systems throughout the world and in the international human rights instruments.$ s re!ards the ro'e of Co"rts in the app'i&ation of "ni0ersa' h"man ri!hts standards# the -an!a'ore *rin&ip'es ha0e this to sa): 8here is an impressive body of 9urisprudence2 both international and national2 concerning the interpretation of particular human rights and freedoms and their application. 8his body of 9urisprudence is of practical value to 9udges and lawyers generally.$

In m) o.n 0ie.# pro&ed"re is desi!ned to assist s"(stan&e/ Bhere pro&ed"re is "sed as a te&hni&a'it) to den) s"(stan&e# the first 0i&tim (e&omes 8"sti&e itse'f/ The &onstit"tiona' ri!hts of &itiAens# reprod"&ed in ('a&3 and .hite o0er 35 )ears a!o# sho"'d not appear to the &itiAens to ha0e (een I.rit on .ater@ ("t in&"'&ated in the a&t"a' pra&ti&e of instit"tions and offi&ia's and trans'ated in the e0er)da) 'i0in! of the &itiAens/ Bhere Co"rts are seiAed of these fai'"res# Co"rts sho"'d not effe&t# as a r"'e# hono"ra('e e;its () p'eadin! 8"risdi&tiona' in&ompeten&e/ 2earned Co"nse' for (oth pp'i&ants Nos 1 and 2 a'so s"(mitted that# tta&hment 1rder and the prin&ip'e of &t (efore 5a C"d!e in

.hate0er 0ie. ma) (e ta3en of the

Ifunctus officio#@ the fa&t remains that "nder se&tion 57 $2%# pro&ed"re for a re0o&ation order is spe&ifi&a'') en0isa!ed "nder the 'e!a'') in order# as far as the) .ere &on&erned/ Se&tion H5 $2% pro0ides: .ub9ect to subsection :3;2 an attachment order shall2 unless revo-ed by a <udge in Chambers2 remain in force for (# days from the date on which it is made.$ I a!ree .ith the s"(mission of ,r *"rsem and ,r D'o0er/ I r"'e o"t the o(8e&tion of IC C on this pro&ed"ra' point/ SUBSTANTIVE Cham(ers6 so that the present app'i&ations from the &ompanies and persons are

1f the man) iss"es &an0assed# there .ere 3 &riti&a' eno"!h to de&ide the &ase one .a) or the other: app'i&a(i'it) of the +inan&ia' Inte''i!en&e and ,one) 2a"nderin! seriatim/ CRIMINA/ /A- IS NOT RETROACTIVE fter re&ei0in! *residentia' assent# *1C and +I ,2 .ere pro&'aimed nti&t 2002 $+I ,2 % to the &ase9 'a&3 of e0iden&e to

s"(stantiate a0erments and the s&ope of se&tion 56 of *1C / I sha'' dea' .ith it

on the 10th C"ne 2002/ ,r *"rsem s"(mitted that the a&ts &omp'ained () IC C .ith respe&t to his &'ient too3 p'a&e on or a(o"t 27 ,a) 2002/ To this# ,rs ,anna# Co"nse' for IC C responded that mone) 'a"nderin! is a &ontin"o"s offen&e so that it did not matter .hether the) too3 p'a&e (efore so 'on! as the state of affairs ha0e remained the same ti'' after the 10 th of C"ne/ I .o"'d tend to a!ree .ith ,rs ,anna on the &ontin"o"s nat"re of an offen&e of mone)'a"nderin!/ >o.e0er# the fa&t remains that the state of affairs are no 'on!er the same .ith respe&t to app'i&ant No 1 in that he had e;ited the s&ene &omp'ete') () ? Septem(er 2000 .hen he had resi!ned from a'' &ompanies .hi&h .ere not State-o.ned/ If the IC C ta3es the 0ie. in its is p'ain') inapp'i&a('e to this *1C 133 &ts: the E&onomi& Crime and pp'i&ant/ ffida0it# as it does# that he is "nder in0esti!ation for a mone) 'a"nderin! offen&e "nder +I ,2 # then +I ,2 s ri!ht') pointed o"t () ,r *"rsem# &t and se&tions 125does pro0ide for transitiona' app'i&ations of offen&es "nder the repea'ed nti ,one) 2a"nderin! of the Crimina' Code/ >o.e0er# it is on') the Commissioner of *o'i&e .ho

has (een empo.ered to 5&ommen&e an) in0esti!ation# in respe&t of an offen&e &ommitted or a''e!ed to (e &ommitted a!ainst6 the repea'ed ena&tments as if *1C had not &ome into operation/ THE SCOPE OF SECTION 59 OF POCA

,rs ,anna# for IC C# a'so s"(mitted that se&tion 56 of *1C

(ein! an

entire') ne. pro&ed"re in o"r 'a. re'ates to the se&"rin! of assets .hi&h ma) (e pro&eeds of &orr"pt pra&ti&es/ Its prin&ipa' p"rpose is to pre0ent 0a'"a('e e0iden&e or assets "nder in0esti!ation from disappearin! in thin air () the time the in0esti!ators &'ose in/ In other .ords# it is a propert) preser0ation de0i&e and a &itiAen &o''a(oration de0i&e/ ,r D'o0er has no diffi&"'t) .ith this interpretation ("t he adds that in this &ase IC C is mis"sin! se&tion 56/ >e s"(mitted that se&tion 56 ma3es a &'ear distin&tion (et.een s"spe&ts and !arnishees/ The se&tion reads:

45.

Application for attachment order

$1% 5otwithstanding any other enactment2 where a <udge in Chambers2 on an application by the Commission2 is satisfied that the Commission has reasonable ground to suspect that a person has committed an offence under this Act or the Financial Intelligence and Anti- oney !aundering Act "##"2 he may ma-e an attachment order under this section. :"; An order under this section shall = $a% attach in the hands of any person named in

the order all money and other property due or owing or belonging to or held on behalf of the suspect> :b; re4uire the person named in the order to

declare in writing to the Commission2 within +? hours of service of the order2 the nature and source of all moneys and other property so attached> and

:c;

prohibit the person from transferring2 pledging

or otherwise disposing of any money or other property so attached e%cept in such manner as may be specified in the order. >is s"(mission is that as far as he is &on&erned his &'ient is a !arnishee and not a s"spe&t/ 1ne does not need spe&ia' effort to "nderstand se&tion 56/ In e'ementar) 'a.# it means IC C needs to satisf) a C"d!e in Cham(ers of 2 fa&ts: $a% that it has reasona('e !ro"nd to s"spe&t9 $(% that an offen&e "nder either +I ,2 &ommitted/ 1n those !ro"nds# it ma) see3 an tta&hment 1rder to atta&h propert)/ or *1C has (een

Bhose propert)J The ans.er is as &'ear as: 5a'' mone) and other p'+p&'%: ,)& +' +;!$1 +' <& +$1!$1 %+ +' =& , +$ <&=# > +> %=& ()(p&"%? 6 It &an on') mean the propert) of persons .ho are not s"spe&ts ("t in .hose hands mone) or propert) ma) ha0e someho. ended "p/ simi'ar pro&ed"re o(tains "nder se&tion 62 .hi&h is app'i&a('e .here a person is &har!ed or a(o"t to (e &har!ed/ The differen&e is s'i!ht (et.een se&tion 56 and se&tion 62 in that the former re'ates to a s"spe&t and the 'atter to an a&&"sed/ It ma) mean a de(tor# a tr"stee# a &"stodian# an a!ent# a pro;) or an) other person e;&ept the s"spe&t himse'f $s/ 56% or the a&&"sed himse'f $s/ 62%/ That# in m) 0ie.# is the interpretation of se&tion 56/ &&ordin!')# () st)'in! the app'i&ant &ompanies and persons as s"spe&ts rather than as &o''a(oratin! &itiAens .ho ma) .e'' (e# at this sta!e# inno&ent

ho'ders of mone)s and propert) a''e!ed') mishand'ed# IC C has mis&onstr"ed its po.ers "nder the 'a./ fter hearin! the parties fo''o.in! the ori!ina' e% parte order made# I am satisfied that the app'i&ation .as made on the .ron! premises/ Se&tion 56 is not to (e "sed for s"spe&ts ("t for ho'ders in d"e &o"rse/ It is a &itiAen &o''a(orati0e de0i&e not a s"spe&t &oer&i0e too'/ REASONAB/E *ROUND TO SUSPECT +o''o.in! m) de&ision re!ardin! the s&ope of se&tion 56 a(o0e# there is no stri&t need for me to dea' .ith the ne;t iss"e# that is# the 'a.@s re4"irement of reasona('e s"spi&ion a!ainst the &ompanies and persons that ha0e (een &onsidered to (e s"spe&ts for their propert) to (e atta&hed/ >o.e0er# IC C made reasona('e s"spi&ion on the &ompanies and persons its 5'i!ne de mire6# and# it .o"'d (e an omission on m) part not to !i0e this aspe&t some &onsideration/

Bhat is 5reasona('e s"spi&ion6 in 'a.J It is the &riterion the app'i&ation of .hi&h has the effe&t of instant') &"rtai'in! some of the &r"&ia' f"ndamenta' freedoms and prote&tions of the &itiAen/ +rom the moment a simp'e *o'i&e 1ffi&er 5reasona(') s"spe&ts6 that a &itiAen has &ommitted an offen&e# the &itiAen 'oses his &onstit"tiona' prote&tions so to spea3/ -e&a"se of a'' the ris3s and peri's it &arries for the &itiAen# the 'e!a' term is s"(8e&ted to some ne&essar) 'e!a' and 8"di&ia' 4"a'ifi&ations/ 2e!a'')# the s"spi&ion sho"'d (e reasona('e/ If there is no reasona(i'it) in the s"spi&ion# the effe&t .o"'d (e drasti& for a demo&ra&)/ 1ne offi&er@s mere s"spi&ion &an set the

.ho'e *o'i&e +or&e and State apparat"s r"nnin! and ma3e a mo&3er) of the &itiAen@s freedoms and 'i(erties/ 1ne sin!'e offi&er@s s"spi&ion .o"'d ma3e a differen&e (et.een a di&tatorship and a demo&ra&)/ 2a.# a&&ordin!')# see3s to !"ide the 1ffi&er in his appre&iation of .hen and ho. to e;er&ise his potentia'') di&tatoria' po.ers/ This it does () imposin! &ertain &onditions/ +irst# the s"spi&ion sho"'d (e reasona('e: ,ing v @ardner :&'7'; 7& Cr. App. *. &3> 1rince A&'?&B Crim. !. *. (3?. Se&ond reasona(i'it) sho"'d (e !a"!ed not from the persona' point of 0ie. of an offi&er or his s"(8e&ti0e standard/ It sho"'d (e appre&iated from the o(8e&ti0e standard# the point of 0ie. of a dispassionate ()stander: Inland *evenue Commissioners v *ossminster !td A&'?#B A.C. '3" / +ina'')# and important')# the s"spi&ion sho"'d (e (ased on fa&ts: ,ing v @ardner :supra;> 1rince :supra;> Care v atthew February &&2 &'?&2 &'7? C. 5o. &7?# :!e%is;/ The fa&ts re'ied on sho"'d (e s"&h as are &onsistent .ith the imp'i&ation of the s"spe&t in the &rime: 1edro v 0iss A&'?&B " All )* 3'2 0.C.> A&'?&B Crim. !.*. "3(/ It sho"'d not (e e4"i0o&a' .ith his imp'i&ation and his non imp'i&ation/ 1n') then .i'' an 1ffi&er@s e;er&ise of po.ers on reasona('e s"spi&ion (e demo&rati& and not a"to&rati& and the po.er "ser (e said to (e ma3in! a differen&e (et.een demo&ra&) and di&tatorship/ Bhat has happened in this &aseJ IC C has imp"ted dishonest moti0es on the app'i&ants and treated them as s"spe&ts/ Bhen its t"rn &ame to sho. () some affida0it on .hat fa&ts the) are (asin! themse'0es to entertain the s"spi&ion# the) repeat that their s"spi&ion is reasona('e# the) !i0e some information and den) "s the rest/ +or app'i&ant No 1: the ans.er is that app'i&ant has re&ei0ed pro&eeds of the ,a"riti"s Commer&ia' -an3 representin! s"(stantia' s"ms of mone)/ &&ordin! to the in0esti!ation# there is e0iden&e that one of the s"spe&ts in the &ase .as on or a(o"t 10 +e(r"ar) 2003 in the offi&e of pp'i&ant for the p"rpose

of draftin! a 'etter in re'ation to a s"m of Rs 25 m on (eha'f of the N*+ at the ,C-/ The &o"nter-affida0it a'so states that ,r Ramde.ar .as persona'') ta3in! possession of the offi&e &he4"es iss"ed () ,C-# that after pri' 2002# he persona'') too3 possession of offi&e &he4"es dra.n to the order of >S-C and State -an3 of ,a"riti"s and presented to the re'e0ant offi&ers at the said (an3s and effe&ted s"(se4"ent on.ard transfer to other a&&o"nts in other (an3s in&'"din! o0erseas (an3s/ The fa&ts ma) aro"se s"spi&ion/ -"t the 'a. re4"ires 5reasona('e s"spi&ion/6 Can it (e reasona(') inferred from these fa&ts# .itho"t more# to an o(8e&ti0e o(ser0er that ,r Ramde.ar is a s"spe&t in the e)es of the 'a./ &&o"nt sho"'d (e ta3en of t.o important fa&ts/ The first is that ,r Ramde.ar is an ttorne) at 'a. and# 'i3e man) ttorne)s# he administers the f"nds of man) &'ients/ >e has said so in his affida0it/ The se&ond is that IC C has sti'' not o(tained ,r Ramde.ar@s 0ersion on these transa&tions as )et/ Can he or an) one for that matter reasona(') (e&ome a s"spe&t on ha'f-tr"thJ s ri!ht') pointed o"t () 'earned Co"nse' for ,r Ramde.ar# if that is reasona('e s"spi&ion in 'a. then e0er) transa&tion in a (an3 or a&ti0it) in the Cham(ers of an ttorne) or an) professiona' for that matter (e&omes reasona('e s"spi&ion in 'a. and e0er)one is 'ia('e to (e arrested/ +or pp'i&ant No 3# IC C@s ans.er is one Teeren ppasam) is one of the 7ire&tors of the pp'i&ant Compan)/ In0esti!ation re0ea's that Teeren ppasam) has (een in0o'0ed in mone) 'a"nderin! and that this app'i&ant has (enefited from the pro&eeds of the &rime/ IC C a'so hides (ehind the &onfidentia'it) of the en4"ir) and .o"'d not .ant to dis&'ose more/

s for

pp'i&ant No H# the ans.er .hi&h IC C !i0es is more or 'ess the ppasam) is one of the 7ire&tors and in0esti!ation

same as a(o0e/ Teeren

re0ea's that Teeren ppasam) has (een in0o'0ed in mone) 'a"nderin!/ There is reasona('e s"spi&ion that this app'i&ant has (enefited from the pro&eeds of the &rime/ IC C# on&e a!ain# .o"'d .ant to p'ead &onfidentia'it) of the en4"ir) and .o"'d not .ant to dis&'ose more/ The 0ie. I ta3e of the matter is as fo''o.s: IC C ma) (e of opinion that the fa&ts a''e!ed in its e)es are reasona('e s"spi&ions/ >o.e0er# the e)es of IC C are not the 'a.s of the &o"ntr)/ It is the e)es of an o(8e&ti0e ()stander/ In the a(sen&e of more detai's from .hi&h the &rimina' intent of the pp'i&ants ma) (e reasona(') inferred# one is tempted to sa) that IC C is at the sta!e on') on a fishin! e;pedition/ IC C is indeed empo.ered to "nderta3e s"&h an e;&"rsion "nder se&tion 56/ Bhat it has no po.er to do is to "se se&tion 56 as a &oer&i0e meas"re at the e;pense of &itiAen@s f"ndamenta' freedoms and 'i(erties/ To do as it has done# IC C# (e it noted# has "sed hi!h so"ndin! 'e!a' &'i&hKs in its affida0it: 5pro&eeds of &rime#6 5!i0in! instr"&tions#6 5fra"d"'ent misappropriation/6 In a demo&rati& s)stem of 8"sti&e# deri0ed from 'on! tradition and an e;p'i&it Constit"tion .hi&h in t"rn (oasts of a -i'' of Ri!hts .hi&h is more or 'ess a te;t"a' reprod"&tion of the E"ropean Con0ention of >"man Ri!hts# IC C@s approa&h ma) 'oo3 fri!htenin!/ 2e!a' &'i&hKs are no s"(stit"te for e0iden&e an) more than s"spi&ion is s"(stit"te for e0iden&e/ The meanin! of the term 5reasona('e s"spi&ion6 has (een disti''ed from &ase-'a. and no. reprod"&ed as se&tion 1/6/ of nne; - of the Code of *ra&ti&e for the E;er&ise of *o'i&e 1ffi&ers: see Castorina v Chief Constable of .urrey &'?? 5!<* &?#2 Court of Appeal> 0allison v Caffery :&'(3; & DE 3+?2 37& and

Ciltshire v Earrett :&'((; & DE 3&"2 3""> unreported;.

urphy v F%ford :&3 February &'??2

5Reasona('e s"spi&ion6 m"st ne&essari') (e !ro"nded on fa&ts: *easonable suspicion2 in contrast to mere suspicion2 must be founded on fact. 8here must be some concrete basis for the officerGs belief2 related to the individual person concerned2 which can be considered and evaluated by an ob9ective third person.$ 5Reasona('e s"spi&ion6 m"st ne&essari') (e distin!"ished from mere s"spi&ion/ ere suspicion2 in contrast2 is a hunch or instinct which cannot be e%plained or 9ustified to an ob9ective observer.$ 5Reasona('e s"spi&ion6 is no instin&t# a''o.s no !"ess# no si;th sense/ It is s&ientifi&/ It has to find s"pport on fa&ts# not e4"i0o&a' fa&ts ("t fa&ts &onsistent .ith !"i't/ '' that an in0esti!ator) a"thorit) ma) do .ith its h"n&hes is 3eep the person "nder o(ser0ation ("t it &annot a&t on it/ An officer who had a hunch or instinct might well be 9ustified in -eeping the person under observation but additional grounds would be needed to bring suspicion to the level of reasonable suspicion.$ Se&tion 1/6 of the En!'ish *o'i&e < Crimina' E0iden&e &t 1?8H

ma3es it amp') &'ear as to ho. in0esti!ator) offi&ers sho"'d (e !"ided in app')in! the prin&ip'e of reasona('e s"spi&ion in their da)-to-da) pra&ti&e/ It is as fo''o.s:

&.(. Chether reasonable grounds for suspicion e%ist will depend on the circumstances in each case2 but there must be some ob9ective basis for it.$ +or instan&e# in the &ase of a motorin! offen&e# the fa&t that a 0ehi&'e@s &hassis n"m(er differs from the one stated in its papers ma) (e reasona('e s"spi&ion/ >o.e0er# resistan&e to !i0e name and address on (ein! stopped () *o'i&e .o"'d not aro"se reasona('e s"spi&ion: Care v in an en4"ir) for sto'en propert)# :A;n officer will need to consider the nature of the article suspected of being carried in the conte%t of other factors such as the time and the place2 and the behaviour of the person concerned or those with him. *easonable suspicion may e%ist2 for e%ample2 where information has been received such as a description of an article being carried or of a suspected offender> a person is seen acting covertly or warily or attempting to hide something> or a person is carrying a certain type of article at an unusual time or in a place where a number of burglaries or thefts are -nown to have ta-en place recently.$ n) &oer&i0e de&ision on reasona('e s"spi&ion m"st (e (ased on a'' the fa&ts .hi&h (ear on the 'i3e'ihood that an arti&'e of a &ertain 3ind .i'' (e fo"nd/ Con0erse')# reasona('e !ro"nds for s"spi&ion do not e;ist .here ph)si&a'# so&ia'# ps)&ho'o!i&a' or other pre8"di&es &ome into p'a)/ Th"s# *easonable suspicion can never be supported on the basis of personal factors alone. For e%ample2 a personGs colour2 age2 hairstyle or manner of dress2 or the fact that he is -nown to have a previous conviction for possession of an unlawful article2 cannot be used alone or in combination with each other as the sole basis on which to search that attew :supra;. 2i3e.ise#

person. 5or may it be founded on the basis of stereotyped images of certain persons or groups as more li-ely to be committing offences.$ +a&ts ma) point "ne4"i0o&a'') to the 0ie. ta3en () the po'i&e or e4"i0o&a'') to that 0ie./ Bhere the) point "ne4"i0o&a'')# the s"spi&ion is reasona('e/ Bhere the) are e4"i0o&a'# no &oer&i0e a&tion ma) (e ta3en () the *o'i&e "nti' the fa&ts (e&ome "ne4"i0o&a'/ +or e;amp'e# in Care v atthew :supra;2 the Co"rt o(ser0ed that an initial refusal of name and address was consistent at least as much with that of a wrong-headed ill-informed motorist as with that of a man guilty of theft.$ In s"&h &ases# it a&&ords .ith !ood sense for the *o'i&e to p'a&e the person in 4"estion "nder o(ser0ation rather than ta3e &oer&i0e a&tion on do"(tf"' s"spi&ion/ T.o other aspe&ts re4"ire m) &omments: the p'ea of IC C that more to dis&'ose .o"'d pre8"di&e its in4"ir)/ In Christie v !eachins-y A&'+7B & All )* 3(7 # the 'eadin! &ase on po'i&e po.ers# =is&o"nt Simon &ommented that if a po'i&eman arrests on reasona('e s"spi&ion he is not entit'ed to 3eep the reason to himse'f/ The other aspe&t of the a0erment of IC C is the s"perimposition of 5reasona('e s"spi&ion/6 The a0erment is that 5IC C has reasona('e !ro"nd to s"spe&t that the L &ompanies and persons L had reasona('e !ro"nds for s"spe&tin! that L6 the) .ere hand'in! mone) from tainted so"r&e/ This ass"mes that anti-&orr"ption 'a.s and anti-mone) 'a"nderin! 'a.s are &rimes of stri&t 'ia(i'it)/ s s"&h# it does not matter .hether the &ompanies and persons had or did not ha0e the re4"ired &rimina' intent/ 1n s"&h an interpretation# it .o"'d s"ffi&e to imp"te the mens rea $menta' state% of a reasona('e man "pon a'' these &ompanies and persons and p"t them (ehind (ars/ The 'a. .o"'d not a''o. an) &onsideration as to .hether the) had the s"(8e&ti0e mens rea or not/ The 'east said a(o"t s"&h an interpretation the (est/

2est I sha'' (e ta;ed of an "n8"stified preferen&e for !i0in! more .ei!ht to h"man ri!hts iss"es than to anti-&orr"ption iss"es# 'et me dra. from re&o!niAed anti-&orr"ption e;perts/ In the So"r&e -oo3 2000# Confrontin! Corr"ption: The E'ements of a Nationa' Inte!rit) S)stem# Transparen&) Internationa' proposes ei!ht !enera' prin&ip'es .hi&h sho"'d !o0ern a nationa' strate!) a!ainst &orr"ption/ !"arantees/ &. !aws against corruption should comply with international It is mon! those# it is e'o4"ent that the first - the 0er) first - spea3s of a &orr"ption 'a. "nder the r"'e of 'a.# in &onsonan&e .ith h"man ri!hts

human rights standards and afford a fair trial to those accused.

crucial that criminal laws against corruption respect human rights guarantees2 under a Constitutional Eill of *ights or an international code2 to ensure specific procedures are not struc- down by the courts as being unconstitutional.H No. for m) o.n 0ie.s# &orr"ption is () and 'ar!e the ri!hts of &apita'/ Ri!hts of &apita' &annot ride ro"!h-shod on ri!hts of h"man3ind/ That the &o"ntr) has to impro0e its nationa' and internationa' ima!e in the &orr"ption per&eption inde;# of that there &an (e no do"(t/ >o.e0er# it sho"'d not in the pro&ess impair its nationa' and internationa' ima!e on the h"man ri!hts per&eption inde;/ The t.o inde;es are not m"t"a'') e;&'"si0e/ I (e'ie0e that a pra&ti&e of a 'a. a!ainst &orr"ption that pa)s s&ant re!ard to >"man Ri!ht standards is as !"i't) of &orr"pt pra&ti&e as the &orr"pt pra&ti&e the 'a. see3s to stamp o"t/ ,ethods that are per&ei0ed to (e hi!h-handed# 0io'ati0e of (asi& prin&ip'es of fairness and (rea&h of f"ndamenta' freedoms and 'i(erties in a so&iet) so 3een to impro0e on them ma) .e'' (e &o"nter-prod"&ti0e/ The &omp'ete pro&ess sho"'d e;"de fairness# from the sta!e of den"n&iation# thro"!h in0esti!ation sta!e ri!ht "p to the sta!e of tria'# 0erdi&t and senten&e#

.here senten&e is prono"n&ed/ This is no s"!!estion that IC C is o0ersteppin!/ *1C is a ne. 'a./ It is (o"nd to !o thro"!h a teethin! period/ -"t as the Report of Transparen&) Internationa' remar3s# it is not ri!ht that from the moment an operation starts# e0er)(od) &on&erned is re!arded and treated as an enem)/ IC C &an i''-afford an a'' ro"nd &oer&i0e strate!) not 4"ite &onsonant .ith the phi'osoph) of the &on&erned/ &t# .hi&h see3s the &ooperation and &o''a(oration of a'' s Transparen&) Internationa' o(ser0es: A single-minded focus on

corruption prevention can also have a negative impact on personal freedoms and fundamental human rights6$ $see the S"mmar) of TI So"r&e -oo3# i(id/%/ +or a'' the reasons a(o0e# I re0o3e the order a!ainst the first fo"r app'i&ants .hi&h I had made on the 21 st of +e(r"ar) 2003/ It is open to IC C to "se se&tion 56 as a &o''a(orati0e instead of &oer&i0e meas"re/ In the 'i!ht of the a(o0e order# the iss"e of Inter0ention () ,a"riti"s Commer&ia' -an3 2td does not arise/ +or pp'i&ant in the 1st &ase ,r R/ *"rsem# of &o"nse' ,r R -"&3to.ansin!# ttorne) +or pp'i&ant in the 2nd &ase ,r D/ D'o0er# of Co"nse' ,r -/ Se.ra8# ttorne) +or pp'i&ant in the 3rd < Hth &ases ,r Toor("th# of Co"nse' ,rs R -ri8moh"n# ttorne) +or pp'i&ant in 5th &ase ,r >/ 7"0a'# of Co"nse' ,r D N! Bon! >in!# of ttorne) +or pp'i&ant in the 6th &ase ,r */ Spe0i''e# of Co"nse' ,r T/ :oeni!# ttorne) pp'i&ant

+or Respondent in a'' &ases ,rs D/ ,anna# !/ Chief 2e!a' d0iser# ,rs +/ ,oo'na# *rin&ipa' State ttorne)