TaxTMI 
TaxTMI 
2026 (3) TMI 850
X X X X Extracts X X X X
X X X X Extracts X X X X
....27th November, 2025, calling upon the petitioners to show cause as to why the retention under Sections 20 and 21 of the PMLA, 2002 of movable properties in the form of cash, digital devices and documents/ records seized, shall not be permitted to be retained by the Enforcement Directorate in terms of 17(4) of the Act of 2002. 3. On receipt of the notice, the petitioners through his Advocate sent a reply to the Deputy Director, Enforcement Directorate on 16th December, 2025 and the copy of the said notice was also sent to the Registrar of the Adjudicating Authority informing that the "Relied Upon Documents'' have not been received by the petitioners and thus requested to provide the documents to the petitioner. On receipt of the notice, the Registrar of the Adjudicating Authority by an e-mail dated 18th December, 2025, requested the Enforcement Directorate for necessary action and to submit proof of service of documents. The Learned Advocate for the petitioners by an email dated 21st December, 2025, informed the Registrar of the Adjudicating Authority that the Enforcement Directorate has not complied with the direction and no documents have been supplied to the petitioner. 4. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rned Senior Advocate representing the petitioners submits that in spite of several requests made by the petitioner, no "Relied Upon Documents" have been served upon the petitioners in compliance with Rule 13(2) of the Adjudicating Authority (Procedure) Regulations, 2013. 9. Mr. Chattoraj submits that the petitioners have submitted details of the documents which the petitioners require for submission of reply to the show cause notice but the respondents have not supplied the same and have violated the provisions of Rule 13(2) of the Adjudicating Authority (Procedure) Regulations, 2013. He submits that the petitioners by an email dated 23rd January, 2026, requested the Registrar for inspection of records of the case and by an email dated 5th February, 2026, the Registrar has allowed the inspection of the records on 10th February, 2026. The petitioners have submitted challan and also applied for certified copy of the records of the Original Application. 10. Mr. Chattoraj submits that the Original Application received by the petitioners from the Adjudicating Authority on 24th December, 2025 from which it reveals that the said application was filed on 13th November, 2025, but in t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... if the petitioners are aggrieved with the order, if any, passed by the Adjudicating Authority, the petitioners are at liberty to file appeal under Section 26 of the PMLA, 2002. 15. Mr. Trivedi submits that on 28th October, 2025 and 29th October, 2025, residential premises of the petitioners were searched and seized one mobile phone having Sim No. 9830025499. The device used by the petitioners for both personal and business communications was found to be relevant to ongoing money laundering investigation. He further submits that an amount of Rs. 3,00,12,000/- in cash was seized from the office premises of the petitioners and the petitioners claimed that it was business cash maintained as part of working capital, though the explanation leaked corroborating of necessity or withdrawn of Rs. 3,00,12,000/-. The petitioners have to show the justification of the said amount but the petitioners failed to justify the same and accordingly the matter was referred to the Adjudicating Authority. He further submits that the Adjudicating Authority has the power to summons, production of documents and evidences and if the petitioners intent to produce evidence or any document is required to be ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uter door or some other conspicuous part of the house or office in which the defendant/ respondent resides or carries on business or personally works for gain, and shall then return the original to the Registrar or Administrative Officer, with a report endorsed thereon or annexed thereto stating that he has so affixed the copy, the circumstances under which he did so and the name and address of the person, if any, in whose presence the copy was affixed and the Authority issuing the summon or notice shall in that event declare that the summon has been duly served on the defendants or respondents. (5) Where the notice is to be served upon a company, corporation or firm, it may be served upon the Secretary, Director or other principal officer of the company or corporation at its registered office or the concerned corporate office or upon the proprietor or partner of the firm at the address of the firm. (6) In a proceeding relating to any business or work against a person who does not reside within the jurisdiction of the Adjudicating Authority the service of summon or notice may be made on any manager or agent, who, at the time of service, personally carries on such ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Managing Director of Ms. Radiant Enterprises Pvt. Ltd. and his company is engaged in warehousing and logistic operation. He admitted to having entered into an agreement dated 1st August, 2016 with Sri Sujit Bose (MLA), who was paid approximately Rs. 63 lakhs between 2016 and 2018 for manpower management and Industrial Relation Consultancy but he has not produced documentary evidence work performed beyond oral assurances. 20. The petitioners by a letter dated 23rd January, 2026, requested for supply of 34 documents. As per the provision of Sub-Section (2) of Section 13 of the Adjudicating Authority (Procedure) Regulations, 2013, complete relied upon documents in a bound paper book and an affidavit of service along with the proof of service has to be filed by the person affecting such service. Sub-Section 3(iii) that the service of summons or notices can also be served through electronic mail (e-mail) or by fax massage. In the present case, notice was served upon the petitioners through email. As per Sub Section 11 of Section 13 summons or notice served through electronic mode as provided under Section 13 of the Information Technology Act, 2000 has been regarded as valid service....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nds, the officer concerned may act on direct or circumstantial evidence but not on mere suspicion or the allegations mentioned in the FIR or charge-sheet so that the same can be scrutinized in order to verify whether they are relevant and germane or not." 26. In the present case along with show cause notice recoding of reasons under Section 8(1) of the PMLA, 2002 by the Adjudicating Authority is served to the petitioner. In the reasons to believe the Adjudicating Authority recorded that: "8. Upon prima facie perusal of the facts, and upon reviewing the RUDs, it is noted that in relation to the scheduled offence, the respondents are involved in the process of money laundering as defined under section 3 of the PMLA, 2002. The role of the respondent(s) and the involvement of movable properties in the form of cash, digital devices & documents/records seized in the generation, concealment, layering, or placement of the proceeds of crime, along with analysis and investigation, have been mentioned on pages 15-46 of the OA. 9. Since, there is a scheduled offence under PMLA and the role of the respondents in money laundering has been described in the application, theref....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Central Government". 30. Section 8 (2) requires the AA to consider the reply to the SCN issued under Section 8(1) PMLA; to hear the aggrieved person as well as the officer issuing the order of provisional attachment and also taken to account "all relevant materials placed on record before the AA". After following the above procedure, the AA will record its finding whether all the properties referred to in the SCN are involved in money-laundering. 31. If the AA is satisfied that any such property is in fact involved in money-laundering the AA will confirm the attachment of such property and record a finding to that effect. Thereupon, the attachment of such property will continue during the pendency of the criminal proceedings. It will become final after an order of confiscation is passed either under Section 8(5) or 8(7) PMLA, or Section 58B PMLA or Section 60(2A) PMLA by the special court constituted for trial of the offences under the PMLA. Under Section 8 (4) PMLA, upon confirmation of the order of provisional attachment, the Director or other officer authorized by him shall "forthwith take the possession of property attached". 32. Section 8 (5) PM....