Lawful source of seized cash requires corroborative evidence; cash books and tax records alone are insufficient under PMLA.

Under the Prevention of Money Laundering Act, 2002, a claimant seeking release of seized cash must prove lawful source through reliable, corroborative evidence; mere cash book entries, balance-sheets and income-tax returns were held insufficient without supporting bank statements or other proof of actual availability of cash. The Tribunal found that the appellants failed to discharge that burden, especially since the records were not produced at the time of search and the surrounding circumstances indicated possible proceeds of a scheduled offence. The retention order was treated as provisional and linked to the pending trial, so the challenge failed and the appeals were dismissed.

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Issues: Whether the retention of the seized cash and documents under the Prevention of Money Laundering Act, 2002 was justified when the appellants claimed that the cash was supported by cash book entries, balance-sheets and income-tax records.

Analysis: The Tribunal held that the appellants failed to discharge the burden of explaining the source of the seized cash. Mere production of cash books, balance-sheets and income-tax returns was held insufficient in the absence of corroborative bank statements or other reliable evidence showing lawful availability of cash with the individuals or firms concerned. The cash book and balance-sheet were treated as incapable of by themselves establishing possession of legitimately sourced cash, especially when they were not produced at the time of search and the surrounding circumstances indicated involvement in scheduled-offence proceeds. The retention order was also noted to be provisional and linked to the outcome of the pending trial.

Conclusion: The challenge to the retention of the seized cash and documents failed. The impugned order was sustained, and the appeals were dismissed.

Final Conclusion: The Tribunal upheld the continued retention of the seized cash and related documents, holding that the appellants had not satisfactorily proved the lawful source of the amount.

Ratio Decidendi: In proceedings under the Prevention of Money Laundering Act, 2002, a claimant seeking release of seized cash must establish its lawful source by reliable and corroborative evidence; unaided entries in cash books, balance-sheets or returns are insufficient.

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