TaxTMI 
TaxTMI 
2019 (7) TMI 961
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....r section 420 read with section 120-B of IPC and section 13(2) read with section 13(1)(d) of the Prevention of Corruption Act, 1988 were committed during the period of 2007-2008. The present ECIR "proceeds of crime" alleged that the proceed of crime may have been generated during the commission of said offence. 3. After seizure of gold and jewellery and documents, the application was filed by the Assistant Director, Directorate of Enforcement, Chandigarh under Section 17(4) of the Prevention Money Laundering Act, 2002(PMLA) being OA No. 63 of 2016, inter alia, seeking retention of documents/articles seized on 23.11.2016 in the case of Appellant No.1. 4. The allegations in the application is on the basis on which the Enforcement Case Information Report No. ECIR/03/CDZO/2014 dated 29.12.2014 (herein after referred to as "the ECIR") was registered on the basis of a FIR No.RC2192014E 0002 dated 26.03.2014. The allegations made against the appellants in FIR are that on 12.01.2007 an application is made by the Appellant No.1 seeking allocation of coal block and after several rounds of disqualifications of various applicants for allocation of coal blocks, the Appellant No.1 Company ....
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.... Fatehpur Coal Block- 12.1.2007; (c ) Presentation before Screening Committee-21.6.2007; (d) Letter from Ministry of Coal seeking consent for joint allocation of Coal Block to the Petitioner 1 and SKS- 6.11.2007; (e ) Final Allotment of Fatehpur Coal Block- 6.2.2008. (f) Sale of Shares of Petitioner. 1- 3.3.2008. 10. It is submitted on behalf of the appellant that each and every act and transaction which is alleged to have constituted the predicate scheduled offence is prior to 1.6.2009, when The Prevention of Money Laundering (Amendment) Act, 2009 came into effect. It is by such amendment that Sections 420 and 120 B of the Indian Penal Code were made part of scheduled offences notified under The Prevention of Money Laundering Act, 2002. They are also prior to 15.2.2013, when The Prevention of Money Laundering (Amendment) Act, 2013 came into effect. It is by such amendment that Section 13 of The Prevention of Corruption Act, 1988 was made part of scheduled offences notified order The Prevention of Money- Laundering Act, 2002. 11. The Adjudicating Authority has come to the conclusion that the Adjudicating Authority is only concerned with the....
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....site to entertain this petition. 4. However, the Appellate Tribunal is requested to consider the petitioner's appeal as expeditiously as possible and preferably within a period of eight weeks from today. 5. In the event, respondent no.2 takes any further action, the petitioner is at liberty to apply. 6. The petition is disposed of in the aforesaid terms. The pending application stands disposed of. 7. Order dasti under signatures of the Court Master. VIBHU BAKHRU, J November 12, 2018/MK" 13. Section 17 of PMLA, 2002 reads as under: "17 Search and seizure. -(1) Where [the Director or any other officer not below the rank of Deputy Director authorised by him for the purposes of this section,] on the basis of information in his possession, has reason to believe (the reason for such belief to be recorded in writing) that any person - (i) has committed any act which constitutes money-laundering, or (ii) is in possession of any proceeds of crime involved in money-laundering, or (iii) is in possession of any records relating to money-laundering, (or) (iv) is in possession of any pr....
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....ecomes practical to seize a frozen property, the officer authorised under sub-Section (1) may seize such property.] (2) The authority, who has been authorized under sub-section(1) shall, immediately after search and seizure [or upon issuance of a freezing order] 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 reason and material for such period, as may be prescribed. (3) Where an authority upon information obtained during survey under section 16, is satisfied that an evidence shall be or is likely to be concealed or tampered with, he may, for reasons to be recorded in writing, enter and search the building or place where such evidence is located and seize that evidence. Provided that no authorization referred to in sub-section (1) shall be required for search under this sub-section. (4) The authority seizing any record or property under sub-Section (1) or freezing any record or property under sub-Section (1A) shall, within a period of thirty days f....
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....eferred to in that subsection: Provided that the period of twenty-four hours shall exclude the time necessary for the journey from the place of detention to the office of the Gazetted Officer, superior in rank to him, or the Magistrate's Court. (5) The Gazetted Officer or the Magistrate before whom any such person is brought shall, if he sees no reasonable ground for search, forthwith discharge such person but otherwise shall direct that search be made. (6) Before making the search under sub-section (1) or sub-section (5) the authority shall call upon two or more persons to attend and witness the search, and the search shall be made in the presence of such persons. (7) The authority shall prepare a list of record or property seized in the course of the search and obtain the signatures of the witnesses on the list. (8) No female shall be searched by any one except a female. (9) The Authority shall record the statement of the person searched under sub-section (1) or subsection (5) in respect of the records or proceeds of crime found or seized in the course of the search:^18 [***] (10) The authority seizing any record ....
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....om records seized or frozen, shall be entitled to obtain copies of records. (3) On the expiry of the period specified under subsection (1), the records shall be returned to the person from whom such records were seized or whose records were ordered to be frozen unless the Adjudicating Authority permits retention or continuation of freezing of such records beyond the said period. (4) The Adjudicating Authority, before authorising the retention or continuation of freezing of such records beyond the period specified in sub-section (1), shall satisfy himself that the records are required for the purposes of adjudication under section 8. (5) After passing of an order of confiscation [or release under sub-section (5) or sub-section (6) or sub-section (7) of section 8 or section 58B or sub-section (2A) of section 60] , the Adjudicating Authority shall direct the release of the records to the person from whom such records were seized. (6) Where an order releasing the records has been made by the Court [Adjudicating Authority under section (5) of section 21] the Director or any other officer authorised by him in this behalf may withhold the release of any....
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....re such report is not required to be forwarded, a similar report of information received or otherwise has been submitted by an officer authorized 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 Department or unit, as the case may be, or any other officer who may be authorised by the Central Government, by notification, for this purpose. In the present case, no report against the appellant has been forwarded to the Magistrate. No complaint against the appellant was filed before a Magistrate. No cognizance of schedule offence was taken by any authority or Additional Secretary to the Government of India. 20. From the entire gamut of matter, the following peculiar and circumstances emerges: - (a) ECIR was registered on the basis of FIR, the closure report has been filed CBI who stated that no case is made out and it was registered mistake of fact. (b) The said closure is yet to considered by the Special Court. (c ) No reasons to believe were produced. The seizure were made on the basis of apprehension and presumption. (d)....