Allowed

FPA-PMLA-1356/AHD/2016 of Gujarat Enviro Protection & Infrastructure Ltd. v/s The Deputy Director Directorate of Enforcement, Ahmedabad

ATFP28 Mar 2017FPA-PMLA-1356/AHD/2016

Case brief

AI extract

What is this about?

In a stay application under the Prevention of Money Laundering Act, the Appellate Tribunal held that bank funds attached in excess of the seized proceeds of crime must be released. The court directed the respondent to release Rs. 12,04,611.39 to the appellant.

What did the court decide?

Attachment set aside; Respondent directed to release Rs. 12,04,611.39 to the appellant within four weeks.

FPA-PMLA-1356/AHD/2016 of Gujarat Enviro Protection… — Money Laundering | ATFP (2017)

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APPELLATE TRIBUNAL, PREVENTION OF MONEY LAUNDERING ACT AT NEW DELHI

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MP-PMLA-2928/AHD/2016 (U/S 35) MP-PMLA-2635/AHD/2016 (Stay) MP-PMLA-2637/AHD/2016 (Stay) FPA-PMLA-1356/AHD/2016

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Gujarat Enviro Protection & Infrastructure Ltd. … Appellant/Applicant

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Versus

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The Deputy Director Directorate of Enforcement, Ahmedabad

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… Respondent

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Advocates/Authorized Representatives who appeared

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For the appellant : Shri Suryakant Singh, Advocate Shri Rakesh Gupta, Advocate For the respondent : Shri Neeraj Atri, Advocate

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CORAM JUSTICE MANMOHAN SINGH : CHAIRMAN SHRI KAUSHAL SRIVASTAVA : MEMBER SHRI ANAND KISHORE : MEMBER

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ORDER 28.03.2017

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MP-PMLA-2635/AHD/2016 (Stay)

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This order is passed in continuation with the Order dated 11^th January, 2017 as on the last date of hearing it was specifically mentioned that the second prayer of the application seeking release of the seizure of Rs. 12,04,611.39p standing to the credit of Appellant no. 1 with the Surat Peoples Cooperative Bank Ltd. Pandesar Branch, Surat from attachment will be considered by us today. The details of the release of the amount pertaining to the second prayer are given in the paras 5 and 6 of the application which read as under:-

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“That the attachment of the Bank Account and withholding of Rs. 12,04,661.39/- on the face of it is arbitrary, illegal and unjustified. The amount so attached is in excess of the amount of Rs. 2,70,58,889/- construed as ‘proceeds of crime’, for which 3.26% of the property of the appellant has also been attached.

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FPA-PMLA-1356/AHD/2016

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Page 1 of 3

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Attachment of 3.26% of the total land measuring 2,05,249 sq. mts. is absolutely vague. 3.26% of the land ought to have been indentified and demarcated so as to ascertain as to which part of the land is under attachment. Without prejudice to the rights and contentions of the appellant, it is submitted that the 3.26% of the land is required to be identified and demarcated so that such demarcated parcel of land is secured during the pendency of the appeal. Since the alleged ‘proceeds of crime, though there are none, are already secured in 3.26% of the land of the appellant no. 1, no purpose shall be served by keeping the sum of Rs. 12,04,611.39p standing to the credit of appellant no. 1 with the Surat Peoples Cooperative Bank Ltd., Pandesar Branch, Surat under illegal attachment.

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Mr. Neeraj Atri, learned Counsel for the Respondent has placed the letter dated 25^th November, 2016 issued by Directorate of Enforcement to the Deputy Legal Advisor, Directorate of Enforcement, HQ, New Delhi dated 25^th November, 2016 where in para 6 it was felt that although the bank balance of Rs. 12,04,611.39/- has been attached in excess of the proceeds of crime (POC) amount, however the Directorate of Enforcement is not inclined to give the consent in view of the reason that the same stands confirmed by the Adjudicating Authority. As a matter of fact, in para 6, it has also been stated that Appellate Tribunal may like to take appropriate decision in the matter.

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After small hearing on behalf of both the parties, we are inclined to set aside the attachment of the said amount being in excess of the alleged proceeds of crime and direct the Respondent to release the sum of Rs. 12,04,611.39p to the Appellant within four weeks from today.

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The Application is accordingly disposed off.

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Copy of order be given ‘dasti’ to both the parties.

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FPA-PMLA-1356/AHD/2016

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Page 2 of 3

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FPA-PMLA-1356/AHD/2016

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List on 8^th August, 2017.

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(Justice Manmohan Singh) Chairman

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(Kaushal Srivastava) Member

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(Anand Kishore) Member

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New Delhi, 28^th March, 2017

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‘R’

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FPA-PMLA-1356/AHD/2016

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Page 3 of 3

FPA-PMLA-1356/AHD/2016 of Gujarat Enviro Protection & Infrastructure Ltd. v/s The Deputy Director Directorate of Enforcement, Ahmedabad

Case brief

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FPA-PMLA-1356/AHD/2016 of Gujarat Enviro Protection & Infrastructure Ltd. v/s The Deputy Director Directorate of Enforcement, Ahmedabad

Case brief

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