2021 (1) TMI 1327 - AT - Money Laundering

Money Laundering - application u/s 35 of the PMLA has been filed seeking ex parte ad interim stay of the impugned order dated 1-1-2021 and an order of status quo and/or an order directing the respondent no. 1 that no coercive steps be taken pursuant to the notice dated 7-1-2021 issued by the respondent No. 1 - section 26 of the Prevention of Money Laundering Act, 2002 - HELD THAT - It is an admitted fact that the property in question is purchased and in possession of the appellant even though lying vacant. It is also an admitted fact that the property is hypothecated to IBHFL and further as per the submission of the respondent no. 1 the property is also mortgaged to IDBI. In the circumstances, it would be proper on the part of both the parties to maintain status quo till the next date of hearing. The order of status quo is subject to conditions imposed. The respondent no. 1 is granted six weeks time to file the reply to the stay application with an advance copy to be served on the other side - The appellant has sent an email dated 26-1-2021 with one attachment regarding inspection of O.C. no. 1329/2020 carried out on 12-1-2021. The appellant is directed to supply the copy of the same to the respondent/its counsel. List the appeal and application on 26th April, 2021.

Summary

Issues: Urgent hearing application, Fresh appeal under PMLA, Application for official record production, Stay application under PMLA

Urgent Hearing Application:
The appellant filed an urgent hearing application, which was allowed, seeking early hearing based on grounds mentioned therein. The matter pertains to a fresh appeal filed under section 26 of the Prevention of Money Laundering Act, 2002 against an order passed by the Adjudicating Authority. The respondent's counsel accepted the notice and requested six weeks to file a reply, which was granted. The appellant sought three weeks to file a rejoinder, which was also allowed.

Application for Official Record Production:
An application was filed along with the appeal to direct the Registry of the Adjudicating Authority to produce the official record of the case. Both parties accepted the notice and were granted six weeks to file a reply to the application.

Stay Application under PMLA:
The appellant filed a stay application under section 35 of the PMLA seeking an ex parte ad interim stay of the impugned order and an order of status quo. The appellant claimed that the property in question was under self-occupation, mortgaged to a financial institution, and had no ability to deal with it. The respondent objected to the grant of stay, arguing that the property was also mortgaged with another institution and lying vacant. After hearing both sides, the Tribunal ordered a status quo, subject to specific conditions, until the next date of hearing. The respondent was given six weeks to file a reply to the stay application.

Conclusion:
The Tribunal directed the appellant to provide a copy of the inspection report to the respondent and scheduled the appeal and applications for a hearing on a specified date. The order was to be given 'dasti' to both parties for compliance.