TaxTMI 
TaxTMI 
2019 (12) TMI 1094
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....as filed the present appeal under Section 42 of the Prevention of Money Laundering Act, 2002 (hereafter 'PMLA'), inter alia, impugning an order dated 22.11.2018 (hereafter 'the impugned order') passed by the Appellate Tribunal. 2. By the impugned order, the appeal preferred by the respondent under Section 26 of the PMLA, against an order dated 13.09.2017 passed by the Adjudicating Authority, was allowed. By the said order dated 13.09.2017, the Adjudicating Authority had confirmed the order dated 26.04.2017 passed by the Directorate of Enforcement, whereby the attachment of certain immovable properties (B-42 Ashok Vihar Phase -I, New Delhi and the factory premises at 1703-04 HSIIDC, Rai, Sonepat, Haryana) was confirmed. 3. Before exami....
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...., the chargesheet was filed. Since the alleged offences were included in the Part A Paragraph I to the Schedule to the PMLA, an ECIR was registered with the Lucknow Zonal Office of the appellant. 7. By the order dated 26.04.2017, Deputy Director, Enforcement Directorate, Ministry of Finance passed a provisional order of attachment, whereby the two following properties were attached: S. No. Details of Property Value (INR) 1. B-42, Ashok Vihar, Phase-I, New Delhi Rs.17,11,42,000/- 2. Factory of M/s Surgicoin Medequip Pvt. Ltd., 1703-04, HSIDC, Rai, Sonepat, Haryana Rs.5,50,00,000/- 8. On 13.09.2017, the Adjudicating Authority confirmed the provisional order of 04.11.2017 accepting the view that the attached pr....
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.... respondent no.2 bank, the prospective buyer and the borrower (Surgicoin Medequip Pvt Ltd through its director - respondent no.1), wherein it was agreed that the sale consideration of the factory premises and plot would be deposited in the CC account of the borrower. And, the amounts so received would be adjusted against the amounts due from the borrower. The outstanding amount was approximately Rs.6,55,11,000/-. Thereafter, a part payment of Rs.1,00,00,000/- was made by the prospective buyer and the balance payment was to be made in terms of the said tripartite Agreement. 13. By a judgment dated 22.11.2018, the Tribunal took note of the details of payments made for acquisition of the property bearing no. 1703-04, HSIIDC, Rai, Haryana an....
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....oda, could not be subject to attachment as proceeds of crime. Admittedly, the said properties had been acquired prior to the commission of the alleged crime, which is stated to be committed somewhere in 2011-12. Thus, the said properties could not be stated to be assets which were derived from any criminal activity. 16. Section 2(1)(u) of the PMLA, which defines the expression 'proceeds of crime', is set out below: "2. Definitions.- xxxx xxxx xxxx xxxx (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 [or where such property is taken or held outside the country, ....
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....d only from the hands of a person who is guilty of committing a scheduled crime or otherwise holds proceeds of crime. 19. It is an admitted fact that the properties, as sought to be attached by the appellant, had been acquired and mortgaged by respondent no.1 prior to the commission of any scheduled offence. Thus, on the date of commission of the offence and on the date of the attachment order, the said properties did not vest with respondent no.1. Respondent no.1, being the mortgagor, was left with equity of redemption and all interest in the said property stood transferred to the mortgagee (respondent no.2), prior to the order of provisional attachment. There is no dispute that the respondent no.2 bank had acquired the mortgage of the ....