Equivalent value attachment under PMLA upheld where direct proceeds of crime were unavailable and burden of proof remained undischarged.

Where direct proceeds of crime are no longer traceable, property of equivalent value may still be attached under the PMLA as alternative attachable property. The Tribunal held that the provisional attachment of bank balances was sustainable because the alleged tainted assets had been dissipated or otherwise become unavailable, and the smaller value of the attached movable assets did not defeat the attachment. It also found that the appellant failed to discharge the statutory burden of showing that the attached amounts were from explained and untainted sources. The attachment was upheld and the challenge failed.

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Issues: Whether the provisional attachment of bank balances as equivalent value of proceeds of crime was sustainable when the direct proceeds were no longer traceable; and whether the appellant had discharged the burden of showing that the attached assets were not proceeds of crime.

Analysis: The attachment covered a comparatively small value of movable assets, while the alleged proceeds of crime were assessed at a much higher figure. The Tribunal held that, under the PMLA, proceeds of crime include not only the direct tainted property but also property of equivalent value where the direct proceeds have been dissipated, layered, or are otherwise unavailable. It relied on the settled principle that where the tainted property cannot be reached, other property near or equivalent in value may be attached as alternative attachable property. The Tribunal also found that the appellant did not satisfactorily displace the statutory burden as to the source and character of the attached amounts.

Conclusion: The attachment of the bank balances as equivalent value of proceeds of crime was upheld and the challenge failed.

Ratio Decidendi: Where the direct proceeds of crime are unavailable, dissipated, or layered, property of equivalent value may be attached under the PMLA as alternative attachable property, and the attachment need not be defeated merely because individual balances are asserted to be from explained sources.

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