Equivalent value attachment under PMLA can reach alternative property when tainted assets are unavailable.

A defective land-sale agreement with altered signatures could not displace the registered sale deed, so the excess amount received over the recorded consideration was treated as funds traceable to the alleged tainted money and the attachment on that transaction was sustained. The Tribunal also stated that proceeds of crime under the PMLA include not only property directly or indirectly derived from criminal activity but also its equivalent value, allowing attachment where the tainted asset is unavailable. On that basis, retention of balance amounts after cancellation of a 9-acre transaction remained attachable, and even property acquired earlier could be proceeded against as alternative attachable property to protect the victim's interest.

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Issues: (i) whether the amount received by the appellant from the project company in relation to the land transaction concerning Survey No. 343/13 could be treated as proceeds of crime and the attachment sustained; (ii) whether the amount retained by the appellant after cancellation of the 9-acre sale transaction could be attached as value equivalent to proceeds of crime, including in respect of property acquired prior to the scheduled offence.

Issue (i): whether the amount received by the appellant from the project company in relation to the land transaction concerning Survey No. 343/13 could be treated as proceeds of crime and the attachment sustained.

Analysis: The agreement relied upon for a higher consideration was found to be defective because it was not signed on all pages by all parties and bore signatures inserted much later. The subsequent sale deed showed a lower consideration, and the later document could not override the completed sale deed. On that basis, the excess amount received over the registered sale consideration was treated as money passed on from the alleged tainted funds of the project company.

Conclusion: The attachment was upheld and the appellant's objection on this transaction failed.

Issue (ii): whether the amount retained by the appellant after cancellation of the 9-acre sale transaction could be attached as value equivalent to proceeds of crime, including in respect of property acquired prior to the scheduled offence.

Analysis: The Tribunal held that Section 2(1)(u) of the Prevention of Money Laundering Act, 2002 encompasses not only property derived from criminal activity but also the value of such property. Where proceeds of crime are not available, attachment of property of equivalent value is permissible, and this may extend to property acquired earlier if it is proceeded against as alternative attachable property. The cancellation of the transaction did not justify retention of the balance amount, and the addendum relied upon did not displace the attachment already made to secure the victim's interest.

Conclusion: The attachment of the equivalent value amount was valid and the appellant's challenge failed.

Final Conclusion: The impugned attachment order was sustained in full and the appeal was dismissed.

Ratio Decidendi: For the purposes of Section 2(1)(u) of the Prevention of Money Laundering Act, 2002, proceeds of crime include not only directly or indirectly derived property but also property attached as equivalent value when the tainted asset is unavailable, and such attachment may extend to otherwise legitimate property used as alternative attachable property to protect the victim's interest.

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