Allowed
FPA-PMLA-1150/KOL/2015 of Msb Mercantile Pvt. Ltd. v/s The Joint Director Directorate of Enforcement, Kolkata
ATFPFPA-PMLA-1150/KOL/2015
Case brief
AI extract
What is this about?
The Special Court quashed orders confirming the provisional attachment of eight properties mortgaged to banks as security for loans. Holding that the bank was an innocent third party possessing the assets under the SARFAESI Act, the court ruled that properties acquired before the alleged offense with clean money do not constitute proceeds of crime absent nexus or illicit intent. The facility granted to the borrower, which defaulted, does not transform the secured bank asset into proceeds of crime.
What did the court decide?
The Impugned Order dated 02.07.2015 and the provisional attachment order dated 04.02.2015 are set aside. All the eight properties are released from attachment forthwith.