2025 (9) TMI 482

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....eable area 591.59 sq. ft. vide sale deed no. 7935, dated 21.11.2008, registered at ADSR, Berampore. 21.12.2008 Smt. Rinku Mitra W/o Atanu Kumar Mitra Ms. Puja Mitra, D/o Atanu Mitra 5,74,922/- 2 Landed property measuring 7.25 dec. Mouza Sahamatganj (J.L. No. 43) Plot No. RS 36 (LR 35), khatian No. 121 (LR 24), Aush Land, P.S. & Dist. Murshidabad vide Sale Deed No. 5609 for 2006 16.10.2006 Ms. Puja Mitra, D/o Atanu Mitra 90,000/- 3 Landed property measuring 7.25 dec. Mouza Sahamatganj (J.L. No. 43) Plot No. RS 36 (LR 35), khatian No. 121 (LR 24), Aush Land, P.S. & Dist. Murshidabad vide Sale Deed No. 5607 for 2006 16.10.2006 Smt. Rinku Mitra w/o Atanu Kumar Mitra 90,000/- 4 Landed property measuring 9 Sataka at Mouza Nosipuir, P.S. Bhagwan Gola, Dist. Murshidabad vide Sale Deed No. 3264/2007 19.04.2007 Smt. Taijunnehar Bibi 1,00,000/- 5 Landed property measuring 301 Sataka Khatian No. 150-171, 253, 230, 305, Hal Khatian No. 429, Aush land, vide Sale Deed No. I -112/2007 2007 Smt. Taijunnehar Bibi 5,00,000/- 6 Landed property measuring 0.80 acre in two parts 0.05 acre and 0.03 acre at Mouza Arajikulgaji,, J.L.....

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....d the properties (mentioned in para no.1 above) vide Provisional Attachment Order dated 03.04.2014. Thereafter, Original Complaint No. 320/2014 was filed before the Adjudicating Authority for confirmation of Provisional Attachment Order. Ld. Adjudicating Authority being satisfied with the allegations made in the OC and relied upon material on record, issued Show Cause Notice to all the defendants. After receiving the replies and hearing the respective submissions, the Ld. Adjudicating Authority confirmed the attachment of properties vide order dated 30.06.2016. Being aggrieved by the said order, the appellants have filed the present appeals. Contention of Appellant. 3. During the arguments, Ld. Counsel for the appellant submitted that as per the allegation, the predicate offences were committed during the period from 13.06.2005 to 16.06.2007, whereas the property at Sl. No. 7 was acquired by appellant Iltush Ahmed on 21.11.2002, i.e. about 3 years prior to the alleged offences and hence, same cannot be covered under the definition of proceeds of crime, being purchased from the legitimate sources of income, much prior to the period of alleged offence. He further argue....

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....taka, in the case of Dyani Antony Paul vs Union Of India reported in (WP No. 38642/2016) dated on 11 December, 2020. The relevant paras of the judgment are 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 PML Act has indulged in the said act or not has to be decided by the competent authority. What is the date of laundering of money will have to be decided on facts of each case and there cannot be any prescribed straight jacket formula. This is an important fact which the authority will have to examine and it is a mixed question of law and fact. 78. A per....

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...., in 2022 SCC OnLine SC 929, wherein it is held that- 42. From the bare language of Section 3 of the 2002 Act, it is amply clear that the offence of money-laundering is an independent offence regarding the process or activity connected with the proceeds of crime which had been derived 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....

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....valent in value held within the country] [or abroad]; [Explanation.- For the removal of doubts, it is hereby clarified that "proceeds of crime" include property not only derived or obtained from the scheduled offence but also any property which may directly or indirectly be derived or obtained as a result of any criminal activity relatable to the scheduled offence]. xx xx  xx  xx  xx  xx  xx  xx  xx  xx  xx The perusal of this definition reveals three limbs of the definition out of which first part refers to the property acquired or derived directly or indirectly by a person relating to the criminal activity to a scheduled offence. The second part includes "the value of any such property". The second part is generally mixed with third part for giving interpretation. However, an elaborate judgment on the issue has been given by the Delhi High Court in the case of Prakash Industries Ltd. v. Directorate of Enforcement reported in 2022 SCC OnLine Del 2087. The relevant para no. 105 of this judgment is reproduced as under:- "105. It would be pertinent to recall that properties which were acquired prior to the enf....

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....ived or obtained as a result of criminal activity relating to a scheduled offence, but also of the value of any such property. If the property is taken or held outside the country, even in such a case, the property equivalent in value held within the country or abroad can be proceeded with. The definition of "property" as in Section 2(1)(v) is equally wide enough to encompass the value of the property of proceeds of crime. Such interpretation would further the legislative intent in recovery of the proceeds of crime and vesting it in the Central Government for effective prevention of money-laundering." The paras quoted above show a detailed discussion to the interpretation to the definition of "proceeds of crime". The judgment of the Apex Court in the case of Smt. Pavana Dibbur vs The Directorate Of Enforcement reported in 2023 SCC OnLine SC 1586 has also been considered. However, findings given by three judges Bench of the Apex Court in the Vijay Madanlal Choudhary Vs. Union of India reported in 2022 SCC OnLine SC 929 has been relied to give interpretation to the definition. In the light of the above, we find no force in the first argument when the proceeds out of crime was not ....