2021 (2) TMI 1384 - AT - Money Laundering

Grant of stay/status quo order - Application for stay of the operation of the impugned order and eviction notice - it is submitted that Respondent would file reply to the stay application within six weeks - HELD THAT - The property appears to have been purchased in the year 2004 and it is contended that since the PMLA, 2002 was not in existence so the same cannot be made applicable to the present property which is acquired prior to the coming into the force of 2002. It is also considered that the purchase of the property was conveyed to the Government of India on 20-12-2004 - The appellant has made out prima facie case for grant of ad-interim order of 'status quo' with respect to the aforesaid property till the next date of hearing. The submissions of the Respondent regarding deposit of rent with the Respondent would be considered at the time of hearing of the stay application. The parties are directed to maintain the 'status quo', as on today, with respect to the property till the next date of hearing. The order of 'status quo' is subject to fulfilment of conditions imposed - list the matter on 19th May, 2021.

Summary

Issues:
1. Urgent hearing of the appeal application.
2. Fresh appeal filed under the Prevention of Money Laundering Act, 2002.
3. Application for stay of the operation of the impugned order and eviction notice.
4. Prima facie case for granting status quo order regarding the property.

Analysis:

1. The appellant filed an application seeking urgent hearing of the appeal, which was considered and allowed. The application for urgent hearing was disposed of promptly.

2. A fresh appeal was filed by the appellant under section 26 of the Prevention of Money Laundering Act, 2002 against the order passed by the Adjudicating Authority. Notice was issued to the Respondent, who sought time to file a reply to the appeal, with specific timelines provided for filing responses and rejoinders.

3. Along with the appeal, an application for stay of the impugned order and eviction notice was filed by the appellant. The appellant argued that the property in question was acquired before the enactment of the PMLA, 2002, and provided detailed explanations regarding the source of purchase. The appellant also referred to relevant judgments and requested the Respondent not to take possession of the property.

4. After hearing both parties and examining the records, the Tribunal found that the property was purchased before the PMLA, 2002 came into force. A prima facie case was established for granting an ad-interim order of 'status quo' regarding the property until the next hearing. Specific conditions were laid down to maintain the status quo, including the continuation of attachments and prohibition on creating any encumbrances on the property.

5. The Tribunal directed both parties to maintain the status quo, with specific conditions in place. The Respondent was granted time to file a reply to the stay application and was instructed to include details of rent in the response. The matter was listed for further hearing with the consent of both parties on a specified date.