2026 (2) TMI 1026

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....e application, the same is allowed. 4. The application stands disposed of. MISC. APPEAL (PMLA) 13/2026 & CM APPL. 10455/2026 INTERIM RELIEF 5. The present appeal is filed under Section 42 of the Prevention of Money Laundering Act, 2002 ["PMLA"] assailing the impugned order dated 27th November, 2025 passed by the Appellate Tribunal under the PMLA in FPA-PMLA-2158/DLI/2018 whereby the Tribunal upheld the confirmation of the Provisional Attachment Order dated 28th July, 2017 issued by the respondent Directorate of Enforcement. 6. The learned counsel for the appellant submits that the subject property, that is, 255, Sainik Vihar, Pitam Pura, Delhi was never purchased by the appellant. The said property was purchased by the father....

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.... Special Counsel for the respondent submits that the proceeds of crime acquired by the appellant in the form of foreign exchange, had been remitted abroad and were not available and therefore the subject property belonging to the appellant was attached as "equivalent value" by order passed under Section 5 of PMLA read with Section 2(1)(u) of PMLA and such action is therefore within statutory framework. 9. We have considered the rival submissions. The principal contention urged on behalf of the appellant is that the subject property was neither acquired nor purchased by the appellant from proceeds of crime and was ancestral in nature, and therefore, could not have been attached. At the very outset, it is apposite to note that the competen....

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....ndustries Ltd. Vs. Directorate of Enforcement (2022) SCC OnLine Del. 2087, held that the properties which were acquired prior to enforcement of the Act, may not be completely immune from action under the Act. In Prakash Industries (supra), this Court reiterated the observations made in Deputy Director, Directorate of Enforcement of Delhi Vs. Axis Bank & Ors. (2019) SCC Online Del 7854 that the expression "proceeds of crime" envisages both tainted property as well as untainted property with it being permissible to proceed against latter provided it is being attached as equivalent to the "value of any such property" or "property equivalent in value held within the country or abroad", provided the actual tainted property cannot be traced or fo....