FPA-PMLA-1388/JL/2016 of PNB Housing Finance Ltd. v/s The Deputy Director Directorate of Enforcement, Jalandhar
Case brief
What is this about?
The tribunal allowed bank housing finance institutes' appeals against provisional attachment orders under the PMLA. It held that banks, as innocent secured creditors dealing in public funds and prior to the alleged offences, cannot be accused of money laundering. The judgment affirmed that the SARFAESI Act's amendments granting overriding priority to secured creditors supersede PMLA attachment in such cases. The attachment was set aside, properties released, and banks directed to sell assets, recover dues, and deposit surpluses with the Enforcement Directorate.
What did the court decide?
Impugned orders dated 02.07.2015 and 16.06.2016, and provisional attachment orders dated 04.02.2015 and 17.12.2015, set aside. Properties released forthwith. Appellant banks director to sell properties in presence of nominee officers, adjust dues, and deposit surplus with Enforcement Directorate.