Provisional Attachment upheld where unregistered transfers, large refunds and undisclosed fund sources suggested layering of proceeds of crime.

Provisional attachment of specified flats was confirmed because transaction records showed no registered sale deeds and title had not passed, substantial refunds equalled or exceeded payments, and purchasers failed to disclose legitimate sources, supporting an inference that purchasers were used to layer or conceal proceeds of crime; on that factual and evidential basis the Adjudicating Authority's provisional attachment was sustained pending trial and the appeals against confirmation were dismissed, leaving the attachments in force subject to the trial outcome.

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Issues: Whether the Adjudicating Authority was right in confirming the provisional attachment of specified flats on the ground that the purchasers were not bona fide purchasers and the consideration and subsequent refunds indicated involvement with proceeds of crime.

Analysis: The Tribunal examined the transaction records, agreements to sell, payments received and subsequent refunds to the purchasers. Although agreements to sell were executed, no sale deeds had been registered and title had not passed. The Tribunal analysed the payments ledger showing substantial refunds in multiple cases, including instances where the refund equalled or exceeded the payment, and noted the failure of purchasers to disclose legitimate sources for the amounts paid. The Tribunal considered whether these facts supported an inference that the purchasers were instruments used to layer or conceal proceeds of crime rather than bona fide purchasers entitled to protection. On that basis, and having regard to the role of provisional attachment pending trial, the Tribunal concluded that the Adjudicating Authority had sufficient material to confirm the provisional attachment subject to the outcome of the trial.

Conclusion: The confirmation of the provisional attachment is upheld; the appeals are dismissed and the provisional attachment of the properties remains in force subject to the final outcome of the trial.

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