TaxTMI 
TaxTMI 
2025 (7) TMI 416
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.... dated 24.05.2017 Khata No. 45, Plot No. 312, Thana No. 515, Area- 2.20 dismal, Mouza-Mahshu, Circle- Kutumba, Aurangaba Saryu Yadav father of son-in-law of Binay Yadav 45,000/- 20,000/- ii. 6421 dated 24.05.2017 Khata No. 71, Plot No. 455, Thana No. 515, Area- 13 dismal, Mouza-Mahshu, Circle- Kutumba, Aurangabad Saryu Yadav father of son-in- law of Binay Yadav 1,04,000/- 60,000/- Movable Properties- Vehicles:- Sl. No. Registration No. Acquired in the name of Consideration Paid (in Rs.) i. Mini Van (Mahindra) BR 26K 3980 Prem Kumar Son-in-law of Binay Yadav 5,22,449/- (including VAT) ii. Bus BR 26K 0732 Saryu Yadav father of son-in-law of Binay Yadav 11,50,000/- iii. Bus BR 26E 7820 Saryu Yadav father of son-in-law of Binay Yadav 5,50,000/- iv. Bus BR 26F 8851 Saryu Yadav father of son-in-law of Binay Yadav 3,65,000/- v. JCB BR 24GA 5349 Saryu Yadav father of son-in-law of Binay Yadav 16,64,000/- Available closing balance in Bank Accounts: Sl. No. Bank Account No. Bank & Branch Account Holder Balance on 25.02.2018 i. 2767000100062038 PUNJAB NATIO....
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....ieved by the said Order, appellants filed the present Appeals. 3. During the arguments, Ld. Counsel for the Appellants submitted that as per ECIR six cases were identified by ED pertaining to the commission of offence under scheduled offences tabulated as under: Sl. No. FIR No. Chargesheet/Supplementary Chargesheet No. Sections 1. Amba PS, Case No. 05/04 dated 25.01.2004 48/06 dated 30.09.2006 Section 307 of IPC, Section 27 of Arms Act 2. Kutumba PS, Case No. 65/04 dated 25.06.2004 49/06 dated 30.09.2004 Section 307 of IPC; Section 27 of Arms Act 3. Kutumba PS, Case No. 59/03 dated 30.06.2003 296/06 dated 13.07.2006 & 01/07 dtd. 10.01.07 (Suppl.) Section 386 of IPC 4. Deo PS, Case No. 118/04 dated 20.12.2004 47/06 dated 31.07.2006 Section 302 & 120B of IPC 5. Deo PS, Case No. 07/05 dated 30.01.2005 68/05 dated 28.08.2005 Sections 384 of IPC 6. Dhibra PS, Case No. 11/14 dated 10.04.2014 06/16 dated 01.03.2016 Sections 307 & 120B of IPC and Section 3 & 4 of Explosive Substance Act He argued that the above table reflects that the first five cases were registered before coming into force of the PM....
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....Joint Director, Directorate of Enforcement (2014) SCC Mad 10702, wherein it is held that- "46. ...the finding recorded u/s 8(2) will terminate the proceedings, in case the Adjudicating Authority comes to the conclusions that none of the properties was involved in money laundering. The proceeding will move over to Sub Section (3) of Section 8 only if a finding is recorded u/s 8(2) at least in respect of one property that it is involved in money laundering. The Adjudicating Authority is empowered to record a finding, in view of the express language of Section 8(2) that all or any of the properties are not involved in money laundering..." He further submitted that the existence of proceeds of crime is a pre- condition for initiating the action u/s 5(1) of PMLA. There is nothing on record that the property in possession was acquired from any proceeds of crime. In support their contention, they relied upon the judgment of Hon'ble Supreme Court of India in case of Vijay Madan Lal Chaudhary v. Union of India. Accordingly, he contended that the Ld. Adjudicating Authority passed the impugned order without any application of mind and in absence of any incriminating evidence again....
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....relevant date to find out the offence of money laundering is when it is projected to be untainted property to make out an offence under section 3 of the Act of 2002, irrespective of the date of commission of schedule/predicate offence. The issue aforesaid has been decided in the case of Dyani Antony Paul v. Union of India reported in (WP No. 38642/2016) dated on 21 February, 2023. The relevant paras of the judgment quoted hereby: - 77. Article 20 of the Constitution prohibits conviction except for violation of a law in force at the time of commission of an offence. In other words, there cannot be prosecution under the PML Act for laundering of money acquired by committing the schedule offences prior to the introduction of the PML Act. Therefore, the time of commission of scheduled offences would not be relevant in the context of the prosecution under the PML Act. What would be relevant in the context of prosecution is the time of commission of the act of money laundering. The question would be, whether a person involved in money laundering as provided under Section 3 of the PMLA Act has indulged in the said act or not has to be decided by the competent authority. What is t....
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....erived or obtained as a result of criminal activity relating to or in relation to a scheduled offence. The process or activity can be in any form -- be it one of concealment, possession, acquisition, use of proceeds of crime as much as projecting it as untainted property or claiming it to be so. Thus, involvement in anyone of such process or activity connected with the proceeds of crime would constitute offence of money-laundering. This offence otherwise has nothing to do with the criminal activity relating to a scheduled offence -- except the proceeds of crime derived or obtained as a result of that crime. 43. Needless to mention that such process or activity can be indulged in only after the property is derived or obtained as a result of criminal activity (a scheduled offence). It would be an offence of money-laundering to indulge in or to assist or being party to the process or activity connected with the proceeds of crime; and such process or activity in a given fact situation may be a continuing offence, irrespective of the date and time of commission of the scheduled offence. In other words, the criminal activity may have been committed before the same had been notif....
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....money-laundering. The second proviso, therefore, addresses the broad objectives of the 2002 Act to reach the proceeds of crime in whosoever's name they are kept or by whosoever they are held." [Emphasis supplied]. Therefore, the property in the hands of any person in possession of proceeds of crime can be attached even if he is not accused of any predicate offence or the offence of money-laundering. This issue is accordingly decided against the appellants and in favour of ED. Issue no.3 8. Now coming to the contention of the appellants that the attached properties were purchased by them from the legit sources of income and not from the proceeds of crime is not substantiated by any documentary evidence like ITRs, bank account statements, loan statements from banks and financial institutions (if any), etc. In absence of any documentary evidence tendered by the appellant, we are not inclined to accept the contention of the appellant that he purchased the properties from legal sources of income. Accordingly, this issue is decided against the appellants and in favour of the Respondent ED, with liberty to lead their defence in the criminal trials. Issue No. 4 & 5 9. Is....
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....ction 18 or frozen under sub- section (1A) of section 17 and the officer authorised by the Director in this behalf has, on the basis of material in his possession, reason to believe (the reason for such belief to be recorded by him in writing) that such property is required to be retained for the purposes 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. 21. Retention of records.--(1) Where any records have been seized, under section 17 or section 18 or frozen under sub- section (1A) of section 17 and the Investigating Officer or any other officer authorised by the Director in this behalf has reason to believe that any of such records are required to be retained for any inquiry under this Act, such records 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 records were seized or frozen, as the case may be. Therefore, filing of original application for retention of such ....