Disclosure of relied-upon documents is mandatory in PMLA proceedings; failure to furnish them can invalidate retention orders.

Where retention of seized property under the Prevention of Money Laundering Act rests on specific FIRs and other foundational material, those relied-upon documents must be supplied to the affected party. The ECIR itself need not be disclosed, but non-supply of the documents actually used to issue the notice and record reasons breaches fair procedure and disclosure requirements. A claim that the material came from other premises does not cure the failure to furnish the relied-upon record. On that basis, the retention order was set aside as unsustainable.

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Issues: Whether non-supply of the relied-upon documents, particularly the FIR and other material forming the basis of the show-cause proceedings, vitiated the order retaining the seized property under the Prevention of Money Laundering Act, 2002.

Analysis: The record showed repeated requests by the appellant for the complete set of relied-upon documents, including the FIRs and other foundational material. The adjudicatory record also reflected that the authority relied upon those documents while issuing the notice and recording reasons. The decision drew a distinction between the ECIR, which need not be supplied, and the FIR and other relied-upon material, which were required to be furnished. Since the materials actually relied upon were not shown to have been supplied, the adjudication was held to be contrary to the legal requirement of disclosure and fair procedure. The contention that the appellant could not seek documents gathered from other premises did not cure the failure to provide the documents specifically relied upon in the proceedings.

Conclusion: The non-supply of the relied-upon documents vitiated the impugned retention order, and the order was rightly set aside in favour of the appellant.

Ratio Decidendi: When an authority relies on specific documents to justify retention or continuation of proceedings under the Prevention of Money Laundering Act, 2002, those documents must be disclosed to the affected party, and failure to supply such relied-upon material renders the order unsustainable.

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