2017 (8) TMI 1642 - AT - Money Laundering

Money Laundering - section 26 of Prevention of Money Laundering Act, 2002 - HELD THAT - Issue notice to the respondent. List this appeal on 2nd February, 2018.

Summary

Issues Involved:
1. Fresh appeal filed under section 26 of Prevention of Money Laundering Act, 2002 against the order dated 12th July, 2017.
2. Interim order sought in view of the notice under section 8(4) of the Act regarding provisional attachment order of two properties.
3. Prima facie case for grant of interim protection based on the appellant's submissions and undertakings.

Analysis:

Issue 1: Fresh appeal under PMLA, 2002
The appeal was filed against an order dated 12th July, 2017, under section 26 of the Prevention of Money Laundering Act, 2002. The respondent was served notice, and their counsel accepted it. The respondent sought six weeks to file a reply, and the appellant was given the opportunity to file a rejoinder within four weeks after receiving the reply. The appeal was listed for hearing on 2nd February, 2018.

Issue 2: Interim order for provisional attachment of properties
The appellant sought an interim order concerning the provisional attachment of two properties based on a notice under section 8(4) of the Act. The properties in question were described in detail, and the appellant argued that the directors associated with the properties were not charged with any proceeds of crime. The appellant provided details of the property purchase dates and undertook that the properties would not be disposed of until the appeal was finally decided. The appellant's counsel argued for interim protection, and objections raised by the respondent's counsel were to be addressed at the next hearing. The appellant was granted protection against any coercive action by the respondent until the matter was resolved.

Issue 3: Prima facie case for interim protection
The appellant made a prima facie case for the grant of interim protection by providing details regarding the properties, the lack of charges against the directors, and the undertaking not to dispose of the properties. The appellant's counsel argued for protection against any coercive action by the respondent. The court considered these submissions and granted protection subject to the conditions mentioned, listing the matter for further hearing on 2nd February, 2018.

This comprehensive analysis covers the issues involved in the legal judgment, detailing the proceedings related to the fresh appeal, the interim order sought for the properties, and the considerations for granting interim protection based on the appellant's submissions.