2020 (7) TMI 787 - HC - Indian Laws

Provisional attachment of properties - amounts lying in any of the accounts of the petitioner were actually the proceeds of the crime or not - petitioner was a minor when the monies came to be credited to his accounts especially - amounts were transferred to his accounts by his late father only - HELD THAT - Taking note of the totality of facts and circumstances especially the prevailing situation arising on account of Covid-19 pandemic all over the world why should not a student an Indian be provided with some relief to tide over the difficult situation when all the avenues available to him are stated to have been completely closed by the subject attachment orders one wonders. Though Mr.Mahajan ld. CGSC submits that the petitioner would have the sufficient means otherwise for his subsistence and the education inasmuch as large amounts of funds had flown out of the country which are yet to be accounted for the Court considers that such inferences are not required to be drawn in the present proceedings inasmuch as Mr.Khurana presses the petition only for a limited purpose keeping the rival pleas of the parties open for consideration by concerned authority/court. The writ petition and the pending application are disposed of with a direction to the respondent no.1 Directorate of Enforcement to release a sum of 30 lacs to the petitioner from any of the amounts of the petitioner lying attached under the impugned attachment order or any other attachment order issued by it - Application disposed off.

Summary

Issues:
Challenge to provisional attachment order dated 18.02.2020 on various properties and funds. Claim of petitioner being a minor during alleged offenses. Dispute over funds in petitioner's accounts being proceeds of crime. Request for release of funds for completion of studies amidst Covid-19 pandemic.

Analysis:
The petitioner sought to set aside a provisional attachment order dated 18.02.2020 concerning multiple properties and funds held in various bank accounts. The petitioner argued that he was a minor during the period when offenses were alleged to have been committed by his family members, and thus, he was not involved in any criminal activities or possession of illicit funds. The petitioner emphasized his status as a student at Purdue University in the United States, pursuing Mechanical Engineering, and requested the release of funds to complete his studies, especially in light of the challenges posed by the Covid-19 pandemic.

The court noted the history of cases registered by the CBI and the Directorate of Enforcement against the petitioner's family members for alleged offenses under the Indian Penal Code and the Prevention of Corruption Act. Despite being a minor at the time, the petitioner was not named in any of the cases. The respondent contended that funds in the petitioner's accounts were proceeds of crime, transferred by his late father. The court refrained from delving into the controversy, leaving it for the adjudicating officer to decide.

During the proceedings, the petitioner's counsel argued for the release of funds to ensure the petitioner's education was not jeopardized, given his young age and imminent completion of studies. The court, considering the global Covid-19 situation, directed the Directorate of Enforcement to release ?30 lakhs to the petitioner from the attached funds, subject to the petitioner providing an undertaking and his mother's surety. The released amount was to be returned if found to be illicit proceeds, within 8 weeks of final adjudication. The court emphasized strict compliance with the undertakings provided, treating them as binding commitments to the court.

In conclusion, the writ petition challenging the attachment order and the related applications were disposed of with the directive to release funds to the petitioner for educational purposes, subject to specified conditions and undertakings.