Family-linked property purchases using fabricated loan agreements and benami-style arrangements held to be crime proceeds; attachment upheld, appeal d...
Properties representing "proceeds of crime" can be provisionally attached even when held by persons not named as accused in the FIR or charge-sheet, since PMLA aims to trace and secure proceeds in whosoever's possession; accordingly, the challenge on this ground was rejected. Properties acquired prior to the scheduled offence period are also attachable as "value thereof" under the second limb of the definition of "proceeds of crime"; hence, attachment of equivalent-value assets was upheld. Release was declined because PMLA does not require a direct nexus where attachment is based on indirect acquisition or "value thereof." Mortgaged assets were held attachable to prevent alienation; secured creditors may seek auction through the Special Judge with safeguards for surplus deposit. Appeal dismissed. - AT
Properties representing "proceeds of crime" can be provisionally attached even when held by persons not named as accused in the FIR or charge-sheet, since PMLA aims to trace and secure proceeds in whosoever's possession; accordingly, the challenge on this ground was rejected. Properties acquired prior to the scheduled offence period are also attachable as "value thereof" under the second limb of the definition of "proceeds of crime"; hence, attachment of equivalent-value assets was upheld. Release was declined because PMLA does not require a direct nexus where attachment is based on indirect acquisition or "value thereof." Mortgaged assets were held attachable to prevent alienation; secured creditors may seek auction through the Special Judge with safeguards for surplus deposit. Appeal dismissed. - AT
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