Money Laundering provisional attachment challenged for lack of service and natural justice breach, order set aside and remanded for hearing

Money laundering provisional attachment challenged on grounds of absence of service and breach of natural justice; the text states notices were sent to an incorrect e-mail and the affected person did not receive them, breaching procedural fairness under the PMLA and requiring an opportunity of hearing, consequently the impugned attachment order dated 23.09.2022 was set aside and the matter remanded to the Adjudicating Authority for rehearing with parties directed to appear on the specified date.

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Issues: Whether the impugned adjudicating authority order confirming provisional attachment should be set aside and remanded for fresh hearing because the appellant was not served with notice and thereby was denied opportunity of hearing under the PMLA regime.

Analysis: The Tribunal found that notices issued by the Adjudicating Authority were sent to an incorrect e-mail ID and therefore the appellant did not receive notice or an opportunity to be represented before the Authority. The Tribunal held that this resulted in violation of the principles of natural justice and that the statutory scheme (PMLA, 2002) requires affected persons be afforded an opportunity of hearing. The respondent did not oppose remand and the parties were directed to appear before the Authority on a nominated date. The Adjudicating Authority was granted a fresh period for disposal.

Conclusion: The impugned order dated 23.09.2022 confirming provisional attachment is set aside and the matter is remanded to the Adjudicating Authority for fresh hearing; parties to appear on 20th May, 2024 and the Adjudicating Authority is granted a fresh period for disposal.

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