Proceeds of crime analysis: unsupported explanations and surrounding facts justified confirmation of attachment under money laundering law.

Unsupported explanations for seized cash and jewellery were rejected where no receipts, bank trail, contemporaneous records, or claimant evidence established a lawful source. The surrounding material, including the use of the premises for flesh trade and the conduct noticed during the raid, supported the inference that the assets were generated from illegal activity. On that basis, the cash and jewellery were treated as proceeds of crime under the Prevention of Money Laundering Act, and attachment was confirmed.

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Issues: Whether the cash and jewellery seized from the premises were proceeds of crime liable to confirmation of attachment under the Prevention of Money Laundering Act, 2002.

Analysis: The appellant's explanation that the cash represented staff savings, business receipts, loans, and accounted turnover was found unsupported by concrete evidence. No receipts, bank trail, or contemporaneous record established that the seized cash belonged to employees or arose from legitimate business sources. The explanation regarding jewellery allegedly pledged by customers was also rejected for want of any supporting record at the time of raid, and no customer came forward to claim it. The surrounding facts, including the discovery of women and minor girls, the sexually suggestive conduct noticed during the raid, and the use of the premises for flesh trade, supported the conclusion that the illegal activity generated the seized assets.

Conclusion: The seized cash and jewellery were held to be proceeds of crime, and the confirmation of attachment was upheld.

Final Conclusion: The appeal failed and the impugned attachment order remained undisturbed.

Ratio Decidendi: Where the explanation for seized assets is unsupported by contemporaneous and credible evidence, and the surrounding material indicates generation of assets from the scheduled offence, the assets may be treated as proceeds of crime under the Act and their attachment confirmed.

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