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2023 (2) TMI 615 - HC - Money LaunderingAppropriate forum - Validity of provisional attachment order - petitioner approached this court on account of non-availability of the Appellate Tribunal under the PMLA - HELD THAT - In the present petition, since the Appellate Tribunal under the PMLA Act has now been constituted, in the opinion of this Court, the entire issue would have to be comprehensively considered by the Appellate Tribunal in the two appeals which are pending before the said tribunal. Therefore, the entertaining of this writ, at this stage, when the Tribunal stands constituted could result in multiplicity of proceedings and also there is a possibility of conflicting rulings, which ought to be avoided. The appeals challenging the show cause notice dated 13th July, 2021 and the appeal of the ED challenging the order dated 20th June, 2018 passed by the adjudicating authority shall now be considered together by the Appellate Tribunal - The challenges and the grounds raised against the impugned PAO dated 7th June, 2021 as part of this writ petition shall also be considered by the Appellate Tribunal under the PMLA Act. The Petitioner is thus permitted to approach the PMLA to raise its challenge to the impugned PAO dated 7th June 2021. The Appellate Tribunal would then adjudicate the appeals and pass a decision in accordance with law. Petition disposed off.
Issues:
Challenge to provisional attachment order (PAO) dated 7th June, 2021 under PMLA Act. Res judicata application due to previous PAO dated 04.01.2018. Allegations raised against the Petitioner in the impugned PAO. Validity of show cause notice dated 13th July, 2021. Jurisdiction of the Appellate Tribunal under PMLA Act. Consideration of Supreme Court judgment in B.L.A Industries Pvt. Ltd case. Analysis: 1. The petitioners challenged the provisional attachment order (PAO) dated 7th June, 2021, issued under the Prevention of Money Laundering Act, 2002 (PMLA Act), along with the show cause notice dated 13th July, 2021. They contended that the impugned PAO was illegal and without jurisdiction, citing a previous PAO issued in 2018 that was not approved by the Adjudicating Authority, which had concluded that no case was made out against the petitioner for money laundering. The respondents accepted notice and were granted time to file a reply. 2. The petitioners argued that the impugned PAO of 2021 was based on the same facts as the previous PAO of 2018, and the FIR and transactions were identical in both cases. The Adjudicating Authority had previously ruled in favor of the petitioner in 2018, finding no wrongdoing in generating proceeds of crime or laundering them. Despite this, the Enforcement Directorate (ED) issued a show cause notice in 2021, which was also challenged by the petitioner before the Appellate Tribunal. 3. The petitioner relied on a Supreme Court judgment from 2022 regarding the legality of the coal block allotment, which absolved the petitioner of any alleged illegality. The ED argued that the petition should be heard by the Appellate Tribunal under the PMLA Act, as it was now constituted. The court noted that the entire issue should be considered comprehensively by the Appellate Tribunal to avoid conflicting rulings and multiplicity of proceedings. 4. Consequently, the court directed that the appeals challenging the show cause notice and the ED's appeal against the 2018 order be considered together by the Appellate Tribunal. The petitioner was permitted to raise challenges to the 2021 PAO before the Appellate Tribunal, which would adjudicate the appeals and pass a decision in accordance with the law. The interim order staying the PAO and proceedings before the Adjudicating Authority would continue until disposed of by the Appellate Tribunal. 5. The court emphasized that none of the interim orders or observations made would impact the ultimate merits of the case to be decided by the Appellate Tribunal. The petition and all pending applications were disposed of, subject to further orders by the Appellate Tribunal under the PMLA Act.
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