TaxTMI 
TaxTMI 
2026 (3) TMI 920
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....ling upon the petitioner 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 petitioner through his Advocate sent a notice 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 petitioner 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 petitioner 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. On 24th December, 2025, the....
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....r submits that in spite of several requests made by the petitioner, no "Relied Upon Documents" have been served upon the petitioner in compliance with Rule 13(2) of the Adjudicating Authority (Procedure) Regulations, 2013. 9. Mr. Chattoraj submits that the petitioner has submitted details of the documents which the petitioner requires 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 petitioner 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 petitioner has 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 petitioner from the Adjudicating Authority on 24th December, 2025 from which it reveals that the said application was filed on 13th November, 2025, but in the show cause notice dated 27th November, 2025, it is r....
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....djudicating Authority, the petitioner is at liberty to file appeal under Section 26 of the PMLA, 2002. 15. Mr. Trivedi submits that an amount of Rs. 25,50,000/- in cash was recovered from the house of the petitioner at the time of search and the petitioner has to show the justification of the said amount but the petitioner 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 petitioner intents to produce evidence or any document is required to be produced, the petitioner can take appropriate steps before the Adjudicating Authority for production of documents and recording of evidences. 16. Mr. Vipul Kundalia, Learned Senior Advocate representing the Union of India by adopting the submission of Mr. Trivedi submits that the petitioner can raise all the issues before the Adjudicating Authority as the authority has all the power to decide the issue, if any, raised by the petitioner and if the petitioner is aggrieved with the order of the Adjudicating Authority, the petitioner can prefer an appeal under Section 2....
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....ants 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 business or work for such person within such limits, which shall be deemed good service. (7) Where the defendant or respondent is confined in a prison, the summon or notice shall be delivered or sent by post or otherwise to the officer in charge of the prison for service on the defendant or respondent. (8) Where the defendant or respondent resides out of India and has no agent in India empowered to accept service, the summon shall be addressed to the defendant or respondent at the place where he is residing and sent to him by post or by courier or by email o....
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....cting 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 petitioner 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. Thus, there is no doubt that service of notice upon the petitioner through email is valid. 21. Considering the reply, if any, to the notice issued under Sub-Section 1 of Section 8, after hearing the aggrieved person and the Director or any other officer authorized and taking into account all the relevant materials placed on record, the Adjudicating Authority shall record a finding whether all or any properties referred to in the notice are involved in money laundering. 22. As per Section 11 of the Act, the Adjudicating Authority shall have the same powers as vested in a Civil Court under the Code of Civil Procedure, 1908. The Adjudicating Authority has the power to allow the parties for discovery and inspection of documents, enforcing the attendance of any person, includ....
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....vable 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, therefore, there are prima facie reasons to believe that M/s. Chinese Quisine Restaurant & Ors. are involved in the offence of money laundering. However, the final view shall be taken after receiving responses from both sides and granting an opportunity for a hearing to both parties, as per the schedule mentioned in the show cause notice u/s 8(1) of the PMLA. Therefore, the prayer made by the applicant for the retention of movable properties in the form of cash, digital devices & documents/records seized during searches conducted on 10.10.2025, 11.10.2025, 28.10.2025 & 29.10.2025 is justified and needs to be considered." Considering the above, this Court did not find any illegality in recording the reasons to believe by the Adjudicating Authority. 27. In the case of J. Sekar Vs. Union o....
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.... 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) PMLA states that upon conclusion of the trial where the special court finds that the offence of money-laundering has been committed, it shall order that the property involved in money-laundering shall stand confiscated to the Central Government. If it finds to the contrary, then under Section 8 (6) it shall order the release of the property to the person entitled to receive it. 33. The order of the AA is subject to appeal before the Appellate Tribunal (AT) constituted under Section 25 of the PMLA. Thus, the AA is not the final authority under the PMLA as far as the attachment of proceeds of crime is concerned. Appeals can be filed to the AT both by the Director and by the person aggrieved by the order of the AA. The limitation for filing such an appeal under Section 26(3) PMLA is....