Proceeds of crime under PMLA justified retention of frozen bank funds where no invoices or supply evidence supported the remittance.

Freezing and retention of a bank account were upheld where the credited funds were treated as proceeds of crime under the Prevention of Money Laundering Act, 2002. The Tribunal relied on the absence of material showing that the appellant supplied goods or services against the remittance, including no invoices or bills, and held that the credited amount could be linked to tainted transactions under investigation. The appellant's non-implication in the charge-sheet or prosecution complaint was not decisive, and mere denial of knowledge of the source was insufficient to release of the funds.

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Issues: Whether the freezing and retention of the appellant's bank account was justified on the ground that the credited amount formed part of the proceeds of crime under the Prevention of Money Laundering Act, 2002.

Analysis: The appellant received Rs. 6.05 crores from M/s Prenda Creations into the frozen bank account. The finding against release of the amount rested on the absence of any material showing that the appellant had supplied goods or services against the remittance, including the absence of invoices or bills. The account was treated as containing funds derived from the tainted transactions under investigation, and the appellant's non-implication in the charge-sheet or prosecution complaint was held not to be decisive for release of the amount. The Tribunal treated the credited sum as part of the proceeds of crime and held that the appellant could not claim to retain it merely on the plea of ignorance of its source.

Conclusion: The freezing and retention of the appellant's bank account was upheld, and the challenge to the attachment failed.

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