M/S Renuka Lawns Throu. Its Sole Prop Sheetal K Tejwani vs… — Money Laundering | Bombay HC (2026)

M/S Renuka Lawns Throu. Its Sole Prop Sheetal K Tejwani vs… — Money Laundering | Bombay HC (2026)

What the court decided

AI extract

Outcome

Directions to the respondent-bank to sell the petitioner's properties in accordance with law; if sale proceeds exceed the recoverable dues under Section 154(2A) MCS Act, the Revisional Authority to decide the pending revision application on its own merits; if the revision reduces the recoverable amount, the bank to be bound by clause (2) of the order dated 5 May 2025 (deposit of excess with the Central Government); no order as to costs.

Issue for consideration

Whether the amount recovered by the respondent-bank on sale of the petitioner's attached immovable properties, to the extent it exceeds the bank's dues, ought to be treated as a deposit for compliance with the requirement under Section 154(2A) of the MCS Act.

Court's answer

The respondent-bank is to take steps in accordance with law to sell the petitioner's properties; in the event the amount recovered exceeds the recoverable dues contemplated under Section 154(2A) of the MCS Act, the Revisional Authority shall decide the petitioner's revision application on its own merits.

Ratio / Principle

If the revision results in reduction of the total amount recoverable, the respondent-bank shall be bound by clause (2) of the order dated 5 May 2025 requiring deposit of the excess amount with the Central Government.

Detailed headnote1 paragraphs

Bombay High Court (Amit Borkar, J.) disposed of a writ petition challenging the rejection of the petitioner's application under Section 154(2A) of the Maharashtra Cooperative Societies Act, 1960. Without adjudicating the contention that sale proceeds of the petitioner's attached immovable properties exceeding the bank's dues should be treated as a deposit for Section 154(2A) compliance, the Court directed the respondent-bank to sell the properties in accordance with law; if the amount recovered exceeds the recoverable dues, the Revisional Authority is to decide the petitioner's pending revision application on its own merits. If the revision reduces the total recoverable amount, the bank is bound by clause (2) of the Special Judge (PMLA) order dated 5 May 2025 requiring deposit of the excess with the Central Government. No order as to costs.

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Shabnoor

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION

WRIT PETITION NO.15289 OF 2024

SHABNOOR AYUB

PATHAN

Digitally signed by SHABNOOR AYUB PATHAN Date: 2026.02.03 18:19:51 +0530

M/s Renuka Lawns Through Its Sole Prop. Sheetal K. Tejwani … Petitioner V/s. Divisional Joint Registrar, Cooperative Societies & Ors. … Respondents

Mr. Ajay Bhise a/w Deepali Kedar & Tejas Vijaykumar Dhotre, for the Petitioner.

Mr. Sidheshwar Biradar, for Respondent No.3.

Ms. Savita Prabhune, AGP, for the State – Respondent.

CORAM : AMIT BORKAR, J.

DATED : FEBRUARY 3, 2026

P.C.:

The challenge in the present petition arises out of the rejection of the petitioner’s application filed under Section 154(2A) of the Maharashtra Cooperative Societies Act, 1960 (“the MCS Act”). The petitioner contends that immovable properties belonging to the petitioner, the value of which exceeds the dues of the respondent-bank, have been attached by the bank. It is submitted that in the event the bank sells the said properties by following the procedure prescribed under the Rules, the amount recovered by the bank ought to be treated as a deposit for the purposes of compliance with the requirement under Section

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28-wp-15289-2024.doc

154(2A) of the MCS Act. Before adjudicating upon the issue raised, it is not necessary to set out in detail the order passed by the Special Judge under the PMLA, permitting the bank to recover its dues out of the mortgaged property. The said order, however, requires the bank to deposit any excess amount recovered with the Central Government.

In that view of the matter, the following order would meet the ends of justice:

(i) The respondent-bank shall take steps, in accordance with law, to sell the properties of the petitioner. In the event the amount recovered exceeds the recoverable dues as contemplated under Section 154(2A) of the MCS Act. The Revisional Authority shall decide the revision application filed by the petitioner on its own merits.

(ii) In the event the outcome of the revision results in reduction of the total amount recoverable, the respondent-bank shall be bound by clause (2) of the order dated 5 May 2025, which requires the bank to deposit the excess amount with the Central Government.

The writ petition stands disposed of in above terms.

There shall be no order as to costs.

(AMIT BORKAR, J.)

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