2019 (9) TMI 797

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....A, J. The Bank of Baroda initiated 'Corporate Insolvency Resolution Process' against 'Rotomac Global Private Limited' (Corporate Debtor). After the conclusion of the 'corporate insolvency resolution process' in absence of any viable and feasible resolution plan, the Adjudicating Authority ordered for liquidation of the 'Corporate Debtor'. 2. The Directorate of Enforcement of Delhi Zonal Office-I vide order ECIR No. 01/DLZO-I/2018 dated 18th February, 2018 started investigation for commission of offence under Section 3 of 'Prevention of 'Money Laundering Act, 2002' punishable under Section 4 of the said Act on the basis of information/material from CBI dated 18th February, 2018 under section 420, 467, 471, 468 & 120-B IPC and Section 1....

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....ction (6) of Section 8 of the PMLA in respect of any property of a person, all the rights and title in such property shall vest absolutely in the Central Government free from all encumbrances. 7. It is contended that the mortgage or creating a charge over the properties of the Corporate Debtor in favour of the banks and other lenders is only encumbrance of the properties. It is contended that in view of Section 9, if confiscation has been made under sub-section (6) of Section 8, such property shall vest in the Central Government free from all encumbrances. 8. It is also contended that State will have first right to confiscate the proceeds of crime over the right of person to recover their debts from an accused. It is stated that the A....

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....initions. ─ (1) In this Act, unless the context otherwise requires,─ xxx xxx xxx (u) "proceeds of crime" means any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence or the value of any such property" 10. Chapter II relates to 'offence of money-laundering' and Section 3 therein relates to 'offence of moneylaundering, which reads as follows: "3. Offence of money-Laundering.- Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime including its concealment, possession, acquisiti....