Court dismisses challenge to Enforcement Directorate's communication under Money Laundering Act, withdraws unauthorized property restrictions

The court disposed of the petition filed by Mangalam Infrabuild LLP challenging a communication by the Enforcement Directorate under the Prevention of Money Laundering Act, 2002. The communication prohibiting the sale, transfer, or lease of certain properties without prior permission was withdrawn by the Enforcement Directorate as it was issued by an unauthorized official to properties not under investigation. The court expressed concern over the issuance and directed informing higher authorities for appropriate instructions. Subsequently, the court instructed the Enforcement Directorate to inform recipients of the withdrawn communication along with a copy of the court's order.

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Issues:
The judgment involves a challenge to a communication issued by the Enforcement Directorate under the Prevention of Money Laundering Act, 2002, regarding the sale, transfer, or lease of certain properties without prior permission.

Details of the Judgment:
The petitioner, Mangalam Infrabuild LLP, challenged a communication dated 26th July, 2019, issued by the Enforcement Directorate under Section 54 of the Prevention of Money Laundering Act, 2002. The communication directed that certain properties in TDI City, Kundli-Sonipat cannot be sold, transferred, or leased without prior permission. The challenge was based on the lack of proper notice and provisional attachment as required under the PMLA Act.

In response to the challenge, the Enforcement Directorate informed the court that the communication was being withdrawn. It was noted that the communication was directed to properties not under investigation and was issued by an unauthorized official. The court expressed concern over the issuance of such communication and directed that higher authorities be informed to provide appropriate instructions.

With the communication being withdrawn, the court disposed of the petition and instructed the Enforcement Directorate to inform the recipients of the withdrawn email along with a copy of the court's order.

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