TaxTMI 
TaxTMI 
2026 (1) TMI 1351
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....dicating Authority in Original Complaint No.1060/2018, whereby the Provisional Attachment Order No. 09/2018 dated 30.10.2018, qua the properties mortgaged with the present Appellant Bank were confirmed for attachment. The details of the properties are as under: Sr. No. Name of Owner Description of properties with address Value in (Lacs) 1. Mrs. Anju Kejriwal H. No.-B2/232, Paschim Vihar, New Delhi 937 2. Shri Jagmohan Kejriwal Land at Kewat No. 67/60, 67/68, Kathoni No.104 Killa No. 9/14, 15, 16, 17 Mouja Village Dehkora, Tehsil Bahadurgarh, Haryana 160 3. M/s Green Valley Plywood Ltd. Agricultural Land bearing survey no. 430 (Acres 4-06 Gunths), 431 (Acres 4-07 Gunths), 432 (Acres 5-13 Gunths), ....
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....s of plywood and enjoying credit facilities since 2002. The LC limits amounting to Rs. 1.50 crores was lastly renewed on 19.04.2010 for an amount of Rs. 71.00 crores. The limits were restructured by Central Office on 30.06.2011 and part of limits under cash credit was converted into Working Capital Term Loan. The account was declared NPA on 31.10.2011. Outstanding amount under this facility as on 31.10.2011 was Rs. 85.31 Crores, which included amount devolved LCs amounting to Rs. 71.79 crores. During enquiry by bank officials, it came to notice that the company indulged in fraud and fabrication of proforma invoices of various non-genuine suppliers and cheated the bank to the tune of Rs. 71.79 crores under the limits sectioned under letters ....
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.... LCs. Cash credit Limit of Rs. 25 crores was sanctioned on 30.06.2011 and two term loans of Rs. 9.04 crore were sanctioned on 30.06.2011. All the credit facilities turned to NPA on 31.10.2011 and Bank filed the case against the Company in CBI and DRT. The Bank has filed the case in CBI/ED office with regard to LCs related amount i.e. Rs. 71.79 crores. The amount of CC Rs. 25 Crores and term loan of Rs. 9.04 Crore was not included at that time. The total book outstanding was Rs. 103.01 crores. After conducting the investigation, ED passed the provisional attachment order no. 09/2018 dated 30.10.2018 and thereafter, filed the Original Complaint No.1060/2018 before the Adjudicating Authority along with relied upon documents for confirmation....
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....nsel submitted that the appellant bank is a victim on account of non-clearance of outstanding dues, and now, being made to lose its valuable security on account of attachment. Ld. Counsel submitted that the appellant bank is the complainant in the present case and they have lodged the case against the mortgagors for misappropriation/diversion of loan. He stressed that the right of the bank are independent rights secured by mortgage only on the basis of advancing of legitimate funds by the bank, without being involved in any manner in commission of alleged offences. Ld. Counsel for the appellant bank submitted that the subject properties, having been mortgaged with the appellant bank are covered u/s 26E of the SARFAESI Act, 2002, introduced ....
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....esent appellant bank will be decided by Ld. Special Judge, PMLA court, at the stage of conclusion of trial in prosecution complaint case. The properties acquired even prior to the period of schedule offence can be attached, as value thereof. She stressed that if the appellant bank is found negligent in any manner, it may suffer loss. Ld. Counsel for the respondent contended that the plea of the appellant bank that SARFAESI provisions get precedence over provisions of PMLA is not correct, as PMLA is a Special Act and proceedings under PMLA get precedence over other Acts in terms of Section 71 of the Act. She further stressed that Ld. Special Judge, PMLA Court can dispose of the mortgaged properties after the conclusion of the trial, as per l....