Proceeds of crime attachment upheld where cash trail and false tobacco sales documents failed to prove genuine source of funds.

Attachment of a fixed deposit as proceeds of crime under the Prevention of Money Laundering Act, 2002 was sustained because the money trail showed circulation of demonetised cash through intermediary-controlled bank accounts, and statements under section 50 indicated the firms were used to deposit cash at the kingpin's instance without any real sale and purchase of goods. The appellant's claim of a genuine source from tobacco sales failed because the invoices and ledger entries did not align with the timing or amount of the remittances, and no bank evidence supported prior genuine dealings with the firms.

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Issues: Whether the attachment of the fixed deposit as proceeds of crime under the Prevention of Money Laundering Act, 2002 was sustainable, and whether the appellant had shown a genuine source of funds from sale of tobacco.

Analysis: The Tribunal found that the money trail traced by the enforcement authorities established circulation of demonetised cash through bank accounts controlled by intermediaries, with statements recorded under section 50 of the Prevention of Money Laundering Act, 2002 showing that the concerned firms were used for depositing cash at the instance of the kingpin and that no actual sale and purchase of goods had taken place. The appellant's reliance on invoices and ledger entries was rejected because the documents did not match the timing or quantum of the remittances, no supporting bank material showed prior genuine dealings with the firms, and the alleged tobacco sales were treated as fictitious paper transactions created to explain the receipt of funds.

Conclusion: The attachment of the fixed deposit was upheld and the appellant's challenge failed.

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