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2020 (10) TMI 820 - HC - Money LaunderingRelease of Provisional Attachment of properties/funds - relief prayed proceeds on the premise that the petitioner was a young boy and a student of Purdue University, Indiana, United States of America and, was in no manner connected with the commission of the scheduled offence or in possession of proceeds of crime and therefore, the attachment of his properties was illegal - HELD THAT - In terms of the directions passed by this Court vide order 17.08.2020, the Adjudicating Authority, under the provisions of Prevention of Money Laundering Act, 2002, has finally adjudicated the provisional attachment orders No.02/2020 dated 18.02.2020 and 06/2020 dated 30.06.2020, vide their orders dated 21.09.2020 and 25.09.2020, respectively - It is an admitted position that the said orders dated 21.09.2020 and 25.09.2020 respectively, rendered by the Adjudicating Authority are appealable orders, in terms of the mandate of the provision Section 26 of PMLA Act. The order dated 22.07.2020 impugned in the present appeal has been admittedly rendered otiose - Appeal allowed.
Issues:
Challenge to provisional attachment order under PMLA Act - Release of funds for student's education - Adjudication of provisional attachment orders by Adjudicating Authority - Appealability of Adjudicating Authority's orders - Reserving right to challenge Adjudicating Authority's orders - Rendering impugned order otiose. Analysis: The case involved a challenge to a provisional attachment order under the Prevention of Money Laundering Act, 2002 (PMLA Act) concerning various bank accounts and mutual fund accounts. The petitioner, a student studying in the USA, sought setting aside of the attachment order, claiming he had no involvement in any offense or proceeds of crime. The petitioner's late family members were implicated in criminal cases, but he was a minor at that time and not named in any case. The respondent argued that funds in the petitioner's accounts were proceeds of crime transferred by his late father. The Court refrained from delving into the controversy, emphasizing the petitioner's welfare and education amidst the COVID-19 pandemic. The Court, considering the circumstances and the petitioner's educational needs, directed the Directorate of Enforcement to release ?30 lakhs to the petitioner from the attached funds, subject to certain conditions and undertakings. The Court highlighted the need to support the student during challenging times and did not delve into the broader issues of fund sources or potential wrongdoing, leaving those matters for future consideration. Subsequently, the Adjudicating Authority adjudicated the provisional attachment orders, which were appealable under the PMLA Act. The petitioner reserved the right to challenge these orders before the Appellate Authority. As a result, the impugned order dated 22.07.2020 was deemed redundant, and the appeal was allowed, with liberty granted to the respondent to pursue further legal actions if necessary. The judgment clarified the legal process, appeal mechanisms, and the specific context of the case concerning the release of funds for a student's education.
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