2020 (6) TMI 798 - HC - Money Laundering

Money Laundering - Provisional attachment of bank accounts - Sub-Section (1) of Section 5 of the Prevention of Money Laundering Act, 2002 - HELD THAT - All the writ petitions are disposed of with the direction that the impugned provisional attachment order dated 05.05.2020 being specific for the amounts attached, the respective petitioners would be at liberty to operate their bank accounts mentioned in the impugned provisional attachment order subject to keeping a balance of the amount attached and that, this would be without prejudice to the rights and contentions of the respondent nos. 1 2 to pass such further orders of attachment in accordance with law, as may be called for.

Summary

Issues:
Challenge to provisional attachment order under the Prevention of Money Laundering Act, 2002.

Analysis:
The judgment pertains to multiple writ petitions challenging a provisional attachment order issued under the Prevention of Money Laundering Act, 2002 (PMLA). The order, dated 05.05.2020, was passed by the Deputy Director of the Mumbai Zone office-I, Directorate of Enforcement. It directed the provisional attachment of movable properties, including bank account balances of 168 account holders, mutual fund accounts, and various articles belonging to Shri Rana Kapoor, totaling ?59,39,51,184. During the hearing, the Respondents clarified that the attachment order was limited in scope, which was reiterated by the Additional Solicitor General (ASG). Consequently, the counsel for the petitioners agreed to have the writ petitions disposed of with the clarifications noted and reserved the right to raise further arguments before the adjudicating authority under the PMLA, requesting the interim orders to be vacated.

The court disposed of all the writ petitions with a direction that the petitioners could operate their bank accounts mentioned in the attachment order, subject to maintaining the balance of the attached amount. This directive was issued without prejudice to the rights of the respondents to pass further attachment orders as required by law. Additionally, the petitioners were granted liberty to challenge another provisional attachment order dated 19.05.2020 in accordance with the available legal remedies. Consequently, all writ petitions and pending applications were disposed of, and all interim orders were vacated as a result of the judgment.