TaxTMI 
TaxTMI 
2019 (5) TMI 1461
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..... a) On 15.03.2007, the respondent issued a summon under section 50(2) and 50(3) of the Prevention of Money Laundering Act, 2002 informing the appellant that they were making an investigation in ECIR/05/DZ/2012 and the presence of the appellant was considered necessary on 03.04.2017 for the purposes of the said investigation. Thereafter, the Counsel for the appellant vide letter dated 31.03.2017 requested the respondent to inform the appellant in writing as to the assumption of jurisdiction of the respondent over the appellant under the provisions of the PMLA, 2002. b) The respondent issued another similar summon dated 13.04.2017 to the appellant under section 50(2) and 50(3) of the Prevention of Money Laundering Act, 2002 informing the appellant that the respondent is making an investigation in ECIR/05/DZ/2012 and that the presence of respondent was considered necessary on 25.04.2017 for the purposes of the said investigation. Thereafter, on 21.04.2017, the Counsel for the appellant informed the respondent that the respondent was unable to comply with the summons dated 13.04.2017 as the appellant was travelling abroad on a business trip. The Counsel once again requested the re....
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....ation sought retention of such seized documents and electronic devices under section 8(3) of the PMLA. 6. The appellant filed its reply to the Original Application, in question. 7. Vide order dated 22.05.2018, the Adjudicating Authority allowed the application filed by the Enforcement Directorate, Respondent and also allowed the Respondent to retain the documents/digital devices till finalisation of the case. The said order is challenged before us. 8. The appellant is neither accused in FIR, nor in ECIR, nor has he been charge sheeted in any of the offences. The respondent has not produced any material having any relation, link or nexus between the appellant and the Sterling Biotech Ltd. in its OA, nor in the reply filed to the present appeal. 9. In the entire Original Application, there is no mention of any proceeds of crime being generated or being in the possession of the appellant or that the appellant is involved in the concealment of such proceeds of crime and portraying the same as untained money. 10. The respondent has not placed on record any material that the property seized by the respondent is a property involved in money laundering as there is no allegation qua th....
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.... record or property found as a result of such search; (d) place marks of identification on such record or [property, if required or] make or cause to be made extracts or copies therefrom; (e) make a note or an inventory of such record or property; (f) examine on oath any person, who is found to be in possession or control of any record or property, in respect of all matters relevant for the purposes of any investigation under this Act: [Provided that no search shall be conducted unless, in relation to the scheduled offence, a report has been forwarded to a Magistrate under section 157 of the Code of Criminal Procedure, 1973 (2 of 1974), or a complaint has been filed by a person, authorised to investigate the offence mentioned in the Schedule, before a Magistrate or court for taking cognizance of the scheduled offence, as the case may be, or in cases where such report is not required to be forwarded, a similar report of information received or otherwise has been submitted by an officer authorised to investigate a scheduled offence to an officer not below the rank of Additional Secretary to the Government of India or equivalent being head of the office or Ministry or Departme....
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....son or in anything under his possession, ownership or control, any record or proceeds of crime which may be useful for or relevant to any proceedings under this Act, he may search that person and seize such record or property which may be useful for or relevant to any proceedings under this Act: [Provided that no search of any person shall be made unless, in relation to the scheduled offence, a report has been forwarded to a Magistrate under section 173 of the Code of Criminal Procedure, 1973 (2 of 1974), or a complaint has been filed by a person authorised to investigate the offence mentioned in the Schedule, before a Magistrate or court for taking cognizance of the scheduled offence, as the case may be.] (2) The authority, who has been authorised under sub-section (1) shall, immediately after search and seizure, forward a copy of the reasons so recorded along with material in his possession, referred to in that sub-section, to the Adjudicating Authority in a sealed envelope, in the manner, as may be prescribed and such Adjudicating Authority shall keep such reasons and material for such period, as may be prescribed. (3) Where an authority is about to search any person, he s....
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....of adjudication under section 8, such property may, if seized be retained or if frozen, may continue to remain frozen, for a period not exceeding one hundred and eighty days from the day on which such property was seized or frozen, as the case may be. (2) The officer authorized by the Director shall, immediately after he has passed an order for retention or continuation of freezing of the property for purposes of adjudication under section 8, forward a copy of the order along with the material in his possession, referred to in sub-section (1), to the Adjudicating Authority, in a sealed cover, in the manner as may be prescribed and such Adjudicating Authority shall keep such order and material for such period as may be prescribed. (3) On the expiry of the period specified in sub-section (1), the property shall be returned to the person from whom such property was seized or whose property was ordered to be frozen unless the Adjudicating Authority permits retention or continuation of freezing of such property beyond the said period. 18. Section 21 of PMLA reads as under:- "21. Retention of records. - (1) Where any records have been seized, under section 17 or section 18 or fr....