2022 (12) TMI 774 - HC - Money Laundering

Money Laundering - aggrieved person - notice for interim attachment of properties not served - requirement to send the notice to person who is not the owner but in possession of property - possession notice has been issued to the petitioner for eviction of the petitioner from the premises - non-service of final attachment Order as well - Section 26 of the Prevention of Money Laundering Act, 2002 - HELD THAT - The facts and circumstances of the case would reveal that the very property has been divested by the creating false documents, which has not been disputed. The property has been attached in the proceedings initiated against the second and third respondents. According to the petitioner, they are in possession of the property under some oral arrangement from the very inception and there was also an oral agreement for sale between the original owner and themselves. The factum of their possession is not disputed - this Court is of the view that as the possession of the petitioner has not been disputed by the Department, any Order evicting or taking away their possession, will certainly affect the right of a person and such person would be an aggrieved person and they will certainly fall under the ambit of Section 26 of The Prevention of Money-Laundering Act, 2002. They can very well challenge the action of the respondent by filing an appeal. Considering the facts and circumstances of the case, as the petitioners are certainly aggrieved persons, they are entitled to file an appeal and establish their stand before the appellate authority. It is for the petitioner to establish their right over the property before the appellate authority. Till such appeal is decided, the petitioners cannot be evicted and the notice served on them shall be put on hold till the disposal of the appeal. In such view of the matter, the respondent is directed to serve a copy of the Order of attachment passed under section 8 of the Prevention of Money-Laundering Act, 2002 enabling the petitioner to file an appeal before the Appellate Tribunal as per Section 26 of The Prevention of Money-Laundering Act, 2002. These Writ Petitions are disposed of.

Issues:
1. Quashing of possession notice and direction against property.
2. Challenge to possession notice issued by second respondent.
3. Dispute over property ownership and sale agreement.
4. Allegations of forgery and money laundering.
5. Lack of notice served during attachment proceedings.
6. Interpretation of Prevention of Money-Laundering Act provisions.
7. Rights of aggrieved parties and appeal process.

Analysis:

1. The first issue involves the challenge to possession notices issued by the respondents. The petitioners sought to quash the possession notice dated 26.11.2012 and Form III Possession Notice dated 06.05.2014. The petitioners claimed ownership of the property based on an oral agreement for sale with the original owner, which was disputed by the respondents. The court considered the validity of the possession notices in light of the ownership dispute and related legal proceedings.

2. The second issue pertains to the ownership dispute and alleged forgery leading to money laundering investigations. The petitioners argued that the property was divested through false documents and that they had a legitimate claim to possession. The respondents contended that the property was rightfully attached under the Prevention of Money-Laundering Act due to criminal activities involving the second and third respondents. The court examined the facts of the case to determine the validity of the attachment and possession notices.

3. The third issue revolves around the lack of notice served during the attachment proceedings. The petitioners raised concerns about not being informed or given an opportunity to establish their rights in the property before the attachment orders were confirmed. The respondents argued that notice requirements did not apply to the petitioners as they were not registered leaseholders or title holders. The court analyzed the provisions of the Prevention of Money-Laundering Act regarding notice and possession in such cases.

4. The fourth issue delves into the interpretation of the Prevention of Money-Laundering Act provisions. The court examined the legal requirements for attachment, provisional orders, and final orders under the Act. It considered the implications of the Act on property rights, possession, and the rights of aggrieved parties in cases involving money laundering allegations.

5. The fifth issue concerns the rights of aggrieved parties and the appeal process under the Prevention of Money-Laundering Act. The court emphasized the importance of allowing aggrieved parties to challenge attachment orders and establish their rights through the appellate process. It directed the respondents to serve a copy of the attachment order to enable the petitioners to file an appeal within a specified timeframe.

6. In conclusion, the court disposed of the writ petitions, allowing the petitioners to pursue their remedy through the appellate tribunal. It highlighted the need for a fair process to determine property rights and upheld the petitioners' right to appeal the attachment orders. The judgment emphasized the importance of due process and the right of aggrieved parties to seek redress through the appropriate legal channels.

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