The Tribunal upheld provisional attachment under the PMLA, finding sufficient material to form a reason to believe that loan funds were misappropriated and converted into proceeds of crime; attempts to dissipate assets and multiple FIRs/charge sheets supported provisional measures. It held the appellant company was part of the same group as M/s Biotor Industries Ltd., with de facto control by former directors, so corporate formalities could not shield it from liability. Where proceeds were siphoned and could not be traced, the Tribunal applied the second limb of "proceeds of crime" to permit attachment of property of equivalent value; appeal dismissed.
The Tribunal upheld provisional attachment under the PMLA, finding sufficient material to form a reason to believe that loan funds were misappropriated and converted into proceeds of crime; attempts to dissipate assets and multiple FIRs/charge sheets supported provisional measures. It held the appellant company was part of the same group as M/s Biotor Industries Ltd., with de facto control by former directors, so corporate formalities could not shield it from liability. Where proceeds were siphoned and could not be traced, the Tribunal applied the second limb of "proceeds of crime" to permit attachment of property of equivalent value; appeal dismissed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4813 
Join Channel 
