2023 (5) TMI 1196 - HC - Money Laundering

Money Laundering - seeking release of attached petitioner s properties - it is the specific contention of the petitioner that the property was purchased by him along with another person and thereafter the said property was converted into plots and so many plots was purchased by the third parties - HELD THAT - It is evident that interest of a co-owner and that of the third party bona fide purchasers of the plots are involved in attached property No.4. The petitioner has offered fixed deposit of Rs.10,00,000/-, which is the value estimated by the competent authority in the Provisional Attachment Order. Therefore, the alternative prayer sought in the writ petition appears to be just and reasonable. The writ petition is allowed-in-part granting alternative relief sought by the petitioner. The respondent is directed to release the attached property No.4 i.e. Ac.6-00 situated at Survey No.376/2, Alamur Village, Ananthapur, subject to the petitioner furnishing security in the form of a fixed deposit for Rs.10,00,000/-.

Summary

Issues involved:
The issues involved in the judgment are the validity of the Provisional Attachment Order, show cause notice, and original complaint under the Prevention of Money Laundering Act, 2002 (PML Act), and the alternative relief sought by the petitioner for the release of the attached property.

Contentions Raised:
The writ petition raised contentions that the Provisional Attachment Order, show cause notice, and original complaint lacked merit and were based on irrational analysis. It was argued that the petitioner received funds lawfully for civil works, and the orders did not meet the legal requirement of 'reason to believe' under the PML Act. The petitioner also claimed that the third-party rights in the attached property were not considered, and proper notices were not issued as per the Act.

Arguments Presented:
The petitioner sought the release of the attached property by offering a fixed deposit in substitution. The respondent argued that the PML Act provides remedies for challenging such orders, including appeals to higher authorities, and filing applications before the Adjudicating Authority. The respondent contended that the Provisional Attachment Order was legally sound and that the writ petition was not the appropriate remedy.

Judgment and Decision:
The Court allowed the writ petition in part, granting the alternative relief sought by the petitioner. The attached property, land at Sy.No.376/2, Alamur Village, Anantapur, was ordered to be released upon the petitioner furnishing a fixed deposit of Rs.10,00,000. The Court considered the joint ownership of the property and the interests of third-party purchasers, deeming the alternative relief just and reasonable. No costs were awarded, and pending miscellaneous petitions were closed with interim orders vacated.