2019 (3) TMI 1516

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....akash Garg who was a Director in Andhra Bank between the period of October, 2006 to October, 2009 had hatched a criminal conspiracy with M/s. Sterling Biotech Ltd. (SBL) and had cheated Andhra Bank and other banks to the tune of Rs. 5,382/- crores. That cash transactions involving the name of one Mr. Garg Director, Andhra Bank totalling to Rs. 1,52,50,000/- between the period October, 2008 to July, 2009 was found in entries in documents which was seized by the Income Tax department, Mumbai during the search operations in the office premises of one unit by the name of M/s. PMT Machines Ltd., Mumbai which was also incorporated in the investigation by the ED under PMLA. The ED also conducted searches at various premises relating to SBL group a....

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....ry issue raised by the counsel for the respondent, the learned counsel for the appellant while not contesting this point and also not disagreeing with the legal powers of the Special Courts under PMLA has, however, submitted that the orders of the adjudicating authority can be appealed to the Appellate Tribunal under Section 26 of PMLA and it is this Tribunal which has to take a decision on the order of the adjudicating authority attaching their properties. 5. While both the appellants and the respondents have argued at length on the merits of the case, however I think it necessary to first deal with the preliminary point taken by the respondent. As per Section 44(1)(a) of PMLA "an offence punishable under Section 4 and any scheduled offen....

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....estoration of such properties during the trial of the case in such manner as may be prescribed." Hence, it is the Special Court only who can adjudge on the offence of money laundering, and the money laundering necessarily relates to the „proceeds of crime‟ only. 7. It is pertinent to note that Section 8 deals with adjudication by the adjudicating authority which as per Section 8(3) authorises, the adjudicating authority to confirm the attachment of the property if it is involved in money laundering. Hence, while the attachment powers are with the adjudicating authority the power to confiscate, release or restore to a claimant of the said property lies specifically with the Special Courts. This Tribunal has not been assigned an....