TaxTMI 
TaxTMI 
2025 (12) TMI 1467
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....hority (AA) under the Prevention of Money Laundering Act, 2002 (PMLA) in the Original Complaint No. 893/2018 (OC). The Provisional Attachment Order No.03/2018 dated 01.02.2018 (PAO) issued in ECIR No. PTZO/05/2017 dated 31.07.2017 was confirmed vide the Impugned Order. The Impugned Order included the attachment of Maruti Brezza Car bearing No. JH 09 AH 9713 of the value Rs. 10,69,173/- in the name of the owner Shri Dhanik Lal Mandal, who had hypothecated the said car to the Appellant Punjab National Bank against the loan of Rs. 6,50,000/- extended by the Appellant Bank to Shri Mandal. 2. Ld. Counsel for the Appellant PNB stated that Shri Dhanik Lal Mandal had approached the Appellant Bank for sanction of a car loan. The Appellant Bank sa....
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....he State and, therefore, the proceeds thereof should go the State. However, in the instant case, the hypothecated assets are created from the loan disbursements and the same ought to be liquidated only to compensate the banks which have been wronged by defaults in repayment of the loan facilities. The doctrine of restitution would, ensure to the benefit of the person injured, which, in the instant case, would be the members of the consortium. Ld. Counsel therefore pleaded to allow the Appeal. 3. Ld. Counsel for the Respondent Directorate stated that Shri Dhanik Lal Mandal in his statement under Section 50 of PMLA was unable to state his monthly income and stated having filed ITRs only for two years 2016-17 and 2017-18. He failed to submi....
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....ns of IPC, Arms Act, CLA Act, UAP Act, NDPS Act at different Police Stations in Gaya. In FIR No. 06/2013 dated 07.02.2013 of Police Station Raushan Ganj, Gaya, Bihar, he has been charge-sheeted along with his brother Shri Sandeep Yadav. A number of his properties have been attached in the Impugned Order. Shri Dhanik Lal Mandal could never produce any documentary evidence for explanations given by him with regard to the acquisition of the properties in his name and in name of his wife Smt. Gudiya Devi. The Provisional Attachment of the said properties has been confirmed in the Impugned Order. We find that the Appeal No. FPA-PMLA-2452/PTN/2018 filed by Shri Dhanik Lal Mandal has been dismissed for non-prosecution. 5. We observe that on 15.....
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....h deposits of Rs. 14,74,500/- in his various bank accounts. We therefore observe that the due diligence claimed to have been exercised by the Appellant Bank before sanctioning the loan was not adequate given the antecedents of Shri Dhanik Lal Mandal. 6. The Appellant Bank has also argued that the provisions of the PMLA cannot override those of SARFAESI Act and RDDB Act. Moreover, having given loan against the purchased vehicle, which is a secured asset since Shri Dhanik Lal Mandal issued a letter of hypothecation of the said vehicle to the Appellant Bank, its provisional attachment could not have been confirmed in the Impugned Order. In this regard, we rely upon the Judgment dated 02.04.2019 of the Hon'ble Delhi High Court in the matter ....
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....he expressions used in the RDBA and SARFAESI Act. Similarly, mere issuance of an order of attachment under the PMLA does not ipso facto render illegal a prior charge or encumbrance of a secured creditor, the claim of the latter for release (or restoration) from the PMLA attachment being dependent on its bona fides. xxxx (xiv) If it is shown by cogent evidence by the bona fide third party claimant (as aforesaid), staking interest in an alternative attachable property (or deemed tainted property) claiming that it had acquired the same at a time anterior to the commission of the proscribed criminal activity, the property to the extent of such interest of the third party will not be subjected to confiscation so long as the charge or....
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....gment in the matter of Axis Bank (supra) has held that the various statutes in relation to the attachment of the properties are to be construed in harmony so as to not only secure the proceeds of crime till its confiscation/release but also to secure the interest of the creditor financial institution/bank. 7. We find from the facts and circumstances of the present case that the impugned movable property viz the Brezza Car was funded up to Rs. 6,50,000/- only by the Appellant Bank and the balance amount of Rs. 4,19,000/- was funded from the savings bank account of Shri Dhanik Lal Mandal with the Appellant Bank. However, the sources of deposits in the savings bank account could not be explained by Shri Dhanik Lal Mandal. To the extent of R....