Allowed
FPA-PMLA-1151/KOL/2015 of Midvale System Pvt. Ltd. v/s The Joint Director Directorate of Enforcement, Kolkata
ATFPFPA-PMLA-1151/KOL/2015
Case brief
AI extract
What is this about?
The Prevention of Money Laundering Act Appellate Tribunal quashed the impugned order and provisional attachment of eight properties under PMLA. The Tribunal held that properties acquired bona fide by banks prior to the alleged crime and mortgaged as security cannot be proceeds of crime. With no nexus between the alleged fraud and the banks, and lacking mens rea, the attachment was unsustainable. The banks, as innocent mortgagees and secured creditors, were entitled to relief and the properties were released forthwith.
What did the court decide?
The impugned order and provisional attachment orders dated 02.07.2015 and 04.02.2015 are set aside. All eight properties are released from attachment forthwith.