Provisional attachment under money-laundering law upheld where homebuyer funds were traced to properties linked with proceeds of crime.

Multiple FIRs alleging cheating, criminal breach of trust and forgery led to an ECIR and PMLA investigation, and the Tribunal found prima facie material showing that homebuyer funds were diverted through group entities for acquisition of land and related properties. On that basis, it held the attached properties were connected with proceeds of crime and that provisional attachment was necessary to safeguard the interests of the homebuyers. The challenge to the confirmed attachment therefore failed, and the attachment was upheld.

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Issues: Whether the provisional attachment confirmed by the Adjudicating Authority was liable to be interfered with on the ground that the attached properties were not involved in money-laundering.

Analysis: Multiple FIRs alleging cheating, criminal breach of trust and forgery led to the recording of ECIR and investigation under the Prevention of Money-Laundering Act, 2002. The material on record, including the account trail, forensic audit and statements recorded during investigation, indicated that funds collected from homebuyers were diverted through group entities and used for acquisition of land and related properties. The Tribunal found a prima facie case that the properties were connected with proceeds of crime and that the attachment was made to safeguard the interests of the homebuyers.

Conclusion: The challenge to the provisional attachment failed and the attachment was upheld.

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