Proceeds of crime nexus upheld for property attachment where unexplained funds financed land purchase and flat construction

The Tribunal held that the attached property bore a sufficient nexus with proceeds of crime under the Prevention of Money Laundering Act. It relied on investigation material showing misappropriation, statements indicating transfer of unexplained funds from the principal accused for purchase of land and construction of flats, and the absence of proof of an independent source for the purchase price, cash deposits, or construction expenses. The contention that the land was bought before the crime period was rejected because the investigation showed the criminal activity had in fact commenced from 2010. The confirmation of provisional attachment was upheld.

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Issues: Whether the property provisionally attached and confirmed by the Adjudicating Authority was shown to have been acquired out of proceeds of crime and was liable to attachment under the Prevention of Money Laundering Act, 2002.

Analysis: The Tribunal noted that the investigation revealed misappropriation over the relevant period and that the appellants' statements reflected transfer of unexplained funds from the principal accused to Ravi Kumar for purchase of land and construction of flats. The plea that the land had been purchased in 2010, before the initially stated crime period, was rejected because the investigation established that the criminal activity in fact commenced from 2010. The appellants did not substantiate an independent source for the purchase price or for the cash deposits and construction activity, and the material on record was held sufficient to show a link between the attached property and the tainted funds.

Conclusion: The property was held to bear a sufficient nexus with proceeds of crime, and the confirmation of provisional attachment was upheld.

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