TaxTMI 
TaxTMI 
2026 (9) TMI 94
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.... deem fit and proper in the facts and circumstances of the case. Facts of the case, as projected by the petitioners : 2. (a) The petitioners pleaded that petitioner No.1 is the proprietor of Shourya Enterprises and one of the partners in Swarnim Ventures, while petitioner No. 2, who is the wife of petitioner No.1, is the proprietor of Bhavy Agency and is also one of the partners in Swarnim Ventures. According to the petitioners, the aforesaid business concerns are engaged in government supplies and project works and provide livelihood to several persons. (b) According to the petitioners, an FIR bearing No. 24/2019 was registered on 16.10.2019 by the Economic Offence Wing/Anti-Corruption Bureau, Raipur (EOW/ACB), under Section 13(1)(a) of the Prevention of Corruption Act, 1988 (for short, "the PC Act"), read with Sections 409 and 120B of the Indian Penal Code (for short, "the IPC"), against certain persons in connection with alleged irregularities relating to the District Mineral Fund (for short, "the DMF"). The petitioners state that they were not named in the said FIR and that the investigation ultimately culminated in a closure report, which was accepted by the competent....
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....operties mentioned at Serial Nos. 1, 3, 4, 5, 7 and 11, by an equivalent Fixed Deposit of Rs.4,36,05,780/-. The said amount represents, according to the petitioners, the aggregate assessed value of the properties sought to be substituted. (g) The learned PMLAT, vide order dated 07.04.2026, dismissed the aforesaid applications, inter alia, upon consideration of Rules 4, 5 and 6 of the Prevention of Money-laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority) Rules, 2013 (for short, "the 2013 Rules"), observing that there was no provision under the PMLA and the Rules framed thereunder for substitution of an attached immovable property by a Fixed Deposit, except in the contingencies contemplated under Rules 5(5) and 6 thereof. The Tribunal further held that the petitioners had not made out a case under the said provisions and that the judgments relied upon by them did not warrant a different view. The Tribunal also observed that the question as to the validity of the attachment itself would be considered in the pending appeals. Contentions : 3. (i) Learned Senior Counsel appearing for the petitioners would submit that the conti....
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....ccording to learned counsel, the petitioners' offer of an equivalent Fixed Deposit is consistent with the underlying object of the said provision and adequately protects the interest of the respondent. (vi) Learned counsel would submit that the learned PMLAT has declined to grant the relief on the ground that there is no statutory provision empowering it to permit substitution of the attached immovable properties by a Fixed Deposit. It is contended that the limitations applicable to the jurisdiction of the learned PMLAT do not curtail the extraordinary jurisdiction vested in this Court under Article 226 of the Constitution. According to learned counsel, this Court, in an appropriate case, can mould the relief so as to balance the interest of the enforcement authorities with the legitimate rights and interests of the petitioners. (vii) It is further submitted that the petitioners' offer of equivalent security does not in any manner prejudice the proceedings under the PMLA or affect the ultimate rights of the respondent in respect of the value secured by the attachment. According to learned counsel, the proposed arrangement would merely substitute the form of security and would....
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....to establish the involvement of the present petitioners. Learned counsel would submit that on account of the impugned action on the part of the respondent, the right of the petitioners has been violated and they are not in a position to enjoy the property. Referring to Sections 5(4), 9, 10, 17(1)(f), 18, 22, 24 and 50 of the PMLA, learned counsel would submit that the matter which is of civil nature has been given a colour of criminal nature. In support of his aforesaid contentions, learned Senior Counsel would place reliance upon the decisions referred to hereinabove. (xi) Lastly, learned senior counsel submits that, in view of the aforesaid circumstances and the petitioners' willingness to furnish equivalent security, the respondent be directed to accept the Fixed Deposit of Rs.4,36,05,780/- and release the aforesaid six identified properties, subject to such terms and safeguards as this Court may deem appropriate. 4. (A) Learned counsel appearing for the respondent, opposing the writ petition, would submit that against the order dated 23.05.2025 passed by the learned Adjudicating Authority confirming the PAO, the petitioners approached the PMLAT by filing appeals and, duri....
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....gements recorded therein. (E) According to learned counsel, the petitioners' plea that the attached properties represent only the "equivalent value of proceeds of crime" does not take the properties outside the statutory scheme of attachment under the PMLA. The nature of the attachment and the legality thereof are already the subject matter of the substantive appeals pending before the PMLAT and, therefore, the same ought not to be examined in the present proceedings. The petitioners' offer to furnish a Fixed Deposit, according to learned counsel, cannot be permitted to indirectly secure release of the properties while the validity of the attachment itself remains pending adjudication. (F) Learned counsel would further submit that the alleged financial hardship, business difficulties or inconvenience caused to the petitioners cannot, by themselves, furnish a ground for directing substitution contrary to the statutory scheme. It is submitted that the provisional attachment, subsequently confirmed by the Adjudicating Authority, has been made in exercise of statutory powers and no jurisdictional error, perversity or violation of principles of natural justice has been demonstrate....
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....3.75% to 5.25% was allegedly charged, aggregating to Rs.66,94,535/-. According to learned counsel, after deducting the aforesaid commission, an amount of Rs.14,95,13,083/- was arranged through such accommodation entries, out of which an amount of Rs.8,94,46,559/- was allegedly paid as bribe to government officers, leaving Rs.6,00,66,524/- in the possession of petitioner No.1 as the alleged proceeds of crime. (K) It is further submitted that the Directorate of Enforcement has already filed a Prosecution Complaint under Section 45 of the PMLA before the learned Special Court (PMLA), Raipur, on 09.12.2024 against, inter alia, the petitioner herein for the alleged offence of money-laundering. Learned counsel would further submit that the properties attached pursuant to the PAO have also been prayed to be confiscated under Section 8(5) of the PMLA in the said proceedings and that the learned Special Court has already taken cognizance of the Prosecution Complaint vide order dated 17.12.2024. (L) Learned counsel would submit that, in these circumstances, the prayer for substitution cannot be considered in isolation from the pending proceedings concerning the alleged proceeds of crim....
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....t writ petition is maintainable before this Court. Analysis: 6. I have heard learned counsel for the parties and perused the material available on record. 7. The controversy in the present writ petition is confined to the question as to whether, during pendency of the appeals challenging confirmation of the PAO, the petitioners are entitled to seek substitution of the attached immovable properties by furnishing a Fixed Deposit of Rs.4,36,05,780/- and whether the learned PMLAT was justified in declining such request ? 8. At the outset, it may be noted that the petitioners have already challenged the order dated 23.05.2025 passed by the learned Adjudicating Authority confirming the PAO by filing two separate appeals before the learned PMLAT. The said appeals are stated to be pending. The applications giving rise to the impugned order dated 07.04.2026 were filed during pendency of those substantive appeals and sought only substitution of certain attached properties by an alternative security. The learned PMLAT, while considering the said applications, has not finally adjudicated upon the legality or otherwise of the order of attachment, which remains open for consideration....
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.... assets, out of which or by means of which he has acquired the property attached under sub-section (1) of section 5, or seized or frozen under section 17 or section 18, the evidence on which he relies and other relevant information and particulars, and to show cause why all or any of such properties should not be declared to be the properties involved in money-laundering and confiscated by the Central Government. xxx xxx xxx 24. Burden of Proof.- In any proceeding relating to proceeds of crime under this Act- (a) in the case of a person charged with the offence of money-laundering under section 3, the Authority or Court shall, unless the contrary is proved, presume that such proceeds of crime are involved in money-laundering; and (b) in the case of any other person the Authority or Court, may presume that such proceeds of crime are involved in money-laundering.] xxx xxx xxx 42. Appeal to High Court.-Any person aggrieved by any decision or order of the Appellate Tribunal may file an appeal to the High Court within sixty days from the date of communication of the decision or order of the Appellate Tribunal to him on any question o....
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....tution merely because such person is willing to furnish security equivalent to the value of the property sought to be released. 13. The learned PMLAT has considered the statutory scheme governing possession of properties whose attachment has been confirmed by the Adjudicating Authority and has examined Rules 4, 5 and 6 of the 2013 Rules. Upon such consideration, the PMLAT has recorded a finding that there is no provision under the PMLA and the Rules made thereunder for substitution of immovable property other than provided under Rule 5(5) and 6 of the 2013 Rules. 14. It is true that the jurisdiction of this Court under Article 226 of the Constitution is wider than the jurisdiction conferred upon a statutory tribunal. However, the existence of such constitutional jurisdiction does not, by itself, confer upon a litigant a substantive right to obtain a relief which is otherwise not available under the statutory scheme. The question before the Court is not merely whether this Court possesses the power to mould an appropriate relief, but whether the petitioners have demonstrated circumstances warranting exercise of such extraordinary and discretionary jurisdiction in the present c....
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.... need not be examined in the present proceedings. 18. The contention that the petitioners' offer of a Fixed Deposit would adequately secure the interest of the respondent also cannot, by itself, furnish a ground for issuing a mandamus. The acceptance of a particular form of security and release of property under a statutory attachment regime involve matters governed by the statutory framework. A writ of mandamus can be issued where a corresponding legal right and public duty are established. In the present case, the petitioners have failed to demonstrate any such enforceable right to substitution of the attached properties in the manner sought by them. 19. The plea of financial hardship and inconvenience in carrying on business also does not alter the position. This Court is conscious that continued attachment of immovable properties may cause inconvenience to the person concerned. However, hardship by itself cannot confer a right to substitution contrary to the statutory scheme, particularly when the validity of the attachment itself is yet to be adjudicated in the pending statutory appeals. 20. Equally, this Court does not find it appropriate to examine in the present pr....
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.... discretion of the High Court to grant relief under Article 226 despite the existence of an alternative remedy. However, the High Court must interfere if there is an adequate efficacious alternative remedy available to the petitioner and he has approached the High Court without availing the same unless he has made out an exceptional case warranting such interference or there exist sufficient grounds to invoke the extraordinary jurisdiction under Article 226. (See: State of U.P. vs. Mohammad Nooh, Titaghur Paper Mills Co. Ltd. vs. State of Orissa, Harbanslal Sahnia vs. Indian Oil Corpn. Ltd., State of H.P. vs. Gujarat Ambuja Cement Ltd.. xxx xxx "15. Thus, while it can be said that this Court has recognized some exceptions to the rule of alternative remedy, i.e., where the statutory authority has not acted in accordance with the provisions of the enactment in question, or in defiance of the fundamental principles of judicial procedure, or has resorted to invoke the provisions which are repealed, or when an order has been passed in total violation of the principles of natural justice, the proposition laid down in Thansingh Nathmal case, Titagarh Paper Mills case and....
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....be exercised subject to certain self-imposed limitations. Resort to that jurisdiction is not intended as an alternative remedy for relief which may be obtained in a suit or other mode prescribed by statute. Ordinarily the court will not entertain a petition for a writ under Article 226, where the petitioner has an alternative remedy, which, without being unduly onerous, provides an equally efficacious remedy. Again the High Court does not generally enter upon determination of questions which demand an elaborate examination of evidence to establish the right to enforce which the writ is claimed. The High Court does not therefore act as a Court of appeal against the decision of a Court or tribunal, to correct errors of fact, and does not by assuming jurisdiction under Article 226 trench upon an alternative remedy provided by statute for obtaining relief. Where it is open to the aggrieved petitioner to move another tribunal, or even itself in another jurisdiction for obtaining redress in the manner provided by a statute, the High Court normally will not permit, by entertaining a petition under Article 226 of the Constitution, the machinery created under the statute to be by-passed, an....