2020 (10) TMI 1386 - HC - Money Laundering

Money Laundering - Territorial Jurisdiction - not only the Impugned Notice has been issued from Delhi, but even the property which has been attached is situated within the jurisdiction of this Court - HELD THAT - It was put to the learned senior counsel for the petitioners that as the proceedings are pending and are to be adjudicated by the Adjudicating Authority, if the petitioner was ready and willing to deposit the attached amount, that is, Rs. 70,25,716.40, by way of a fixed deposit, in lieu of the property, with this Court, with such fixed deposit abiding by the final order passed by the Adjudicating Authority. While leaving the question of territorial jurisdiction open to be adjudicated is an appropriate case, as the attached amount even as per the complaint is only Rs. 70,25,716.40, it is directed that subject to the petitioner making the deposit of said amount by way of a Fixed Deposit with the Registrar General of this Court within a period of six weeks from today, the immovable property, that is, Flat No. T-22-06-01, CWG Village, Near Akshardham Temple at Noida crossing, located off NH-24, Delhi-110092 shall stand released from the attachment. The amount so deposited with the Registrar General of this Court shall abide by the outcome of the proceedings before the Adjudicating Authority and shall be released in accordance with the directions passed therein. The petition is disposed off.

Summary

Issues involved: Territorial jurisdiction of the court, challenge to Show Cause Notice u/s 8(1) of Prevention of Money Laundering Act, 2002, attachment of immovable property.

Territorial Jurisdiction: The respondent raised an objection on the territorial jurisdiction of the court, citing a previous judgment. The petitioner argued that the court has jurisdiction as the Impugned Notice was issued from Delhi and the attached property is within the court's jurisdiction. The court found merit in the petitioner's submissions and left the question of territorial jurisdiction open for adjudication.

Challenge to Show Cause Notice: The petitioner challenged the Show Cause Notice dated 20.02.2020 issued by the Adjudicating Authority u/s 8(1) of the Prevention of Money Laundering Act, 2002. The Complaint detailed the immovable properties to be attached, including a specific flat in Delhi. The petitioner expressed readiness to deposit the attached amount by way of a Fixed Deposit with the court, subject to the final order of the Adjudicating Authority.

Attachment of Immovable Property: The court directed the petitioner to deposit the attached amount within six weeks with the Registrar General of the court. Upon such deposit, the immovable property, a flat in Delhi, shall be released from attachment. The deposited amount shall abide by the Adjudicating Authority's decision and be released accordingly. The Fixed Deposit Receipt will be treated as the property attached u/s 5(1) of the Act. The court clarified that it did not express any opinion on the merits of the claims made by either party.

Disposition: The petition was disposed of with the above terms, and no costs were awarded.