TaxTMI 
TaxTMI 
2022 (10) TMI 633
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....petition involves two fold prayer; one for quashing the proceeding pursuant to Annexures-2, 3 & 8 (series) and the second one for de-freezing the Bank account. 2. Sri Mohanty, learned counsel for the Petitioners taking this Court to different provisions in the Prevention of Money-Laundering Act, 2002 (hereinafter in short be reflected as "the Act, 2002") particularly to the Section 5, 8 & 17 therein attempted to bring home the allegation of non-compliance of requirements therein by the Director involved therein in issuing the impugned order at Annexure-8 at page 69 of the brief and the consequential notice to the Bank and accordingly sought for quashing of both while also making prayer for a direction to the Bank authority for at least release of some amount from the freezed account of the Petitioners for them and their families utilization for minimum sustenance. Sri Mohanty, learned counsel for the Petitioners also takes reliance of a judgment of the Hon'ble apex Court in the case of Opto Circuit India Ltd. Vs. Axis Bank and Ors. reported in AIR 2021 SC 753 to support his case. 3. Sri Nayak, learned counsel appearing for the contesting Opposite Party Nos.1 & 2 in his submission....
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....e basis of material in his possession, that if such property involved in money-laundering is not attached immediately under this Chapter, the non-attachment of the property is likely to frustrate any proceeding under this Act.] (2) The Director, or any other officer not below the rank of Deputy Director, shall, immediately after attachment under sub-section (1), forward a copy of the order, along with the 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 order and material for such period as may be prescribed. (3) Every order of attachment made under sub-section (1) shall cease to have effect after the expiry of the period specified in that sub-section or on the date of an order made under [sub-section (2)] of section 8, whichever is earlier. (4) Nothing in this section shall prevent the person interested in the enjoyment of the immovable property attached under sub-section (1) from such enjoyment. (5) The Director or any other officer who provisionally attaches any property under sub-section (1) shall, within a period of thirty ....
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....nding to that effect, whereupon such attachment or retention or freezing of the seized or frozen property] or record shall- (a) continue during the pendency of the proceedings relating to any [offence under this Act before a court or under the corresponding law of any other country, before the competent court of criminal jurisdiction outside India, as the case may be; and] [(b) become final after an order of confiscation is passed under sub-section (5) or sub-section (7) of section 8 or section 58B or sub-section (2A) of section 60 by the 5 [Special Court];] "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 property related to crime,] then, subject to the rules made in this....
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....ho 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 alongwith 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, upon information obtained during survey under section 16, is satisfied that any 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 (1-A) shall, within a period of thirty days from such seizure or freezing, as the case may be, file an application, requesting for retention of such record or property seized under sub-section (1) or for c....
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....of schedule offence as the case may be. However second proviso gives further power to the Director or person authorized not withstanding anything contend that in 1st proviso may attach such property under this section if he has reason to believe (the reasons for such belief to be recorded in writing), on the basis of material in his possession, that if such property involved in Money Laundering is not attached immediately under this Chapter, the non-attachment of the property is likely to frustrate any proceeding under this Act. 7. Sub-section-2 therein provides power to such Officer making attachment who shall immediately after at least under Sub-section (1) forward a copy of order, alongwith the materials in his possession to the Adjudicating Authority in a sealed cover in the manner as may be prescribed. 8. Sub-section 5 therein provides the Director or other Officer provisionally attaches any property U/s.5 (1) shall within a period of thirty days from such attachment file a complaint stating the facts of such attachment before the Adjudicating Authority. 9. Section 8 deals with power of adjudication of complaint by the Adjudicating Authority, but however, providing opportun....