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TMI Blog2015 (8) TMI 1112X X X X Extracts X X X X X X X X Extracts X X X X ..... ty is required to show is that there was “substantially probable cause” to form an opinion that the property under attachment is proceeds of crime. Perusal of Chapter III of PMLA also reveals that the orders passed under it are interlocutory in nature and such order do not decide finally whether an offence has been committed by an accused under Section 3 of the Act for Money Laundering nor such orders passed under said chapter decide what punishment is to be imposed on such accused for money laundering. Any observation made while passing orders under said chapter are not the findings for the purpose of alleged offense committed under Section 3 nor observations are the findings in the Criminal matters pending against such accused. It i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion against the appellant is that he is the Managing Director of M/s. Alankar Alloys Pvt. Ltd which company was manufacturing and selling goods using the trade mark of Steel Authority of India Ltd. (SAIL). 5. In the present proceedings as to whether Shri Lalit Kumar Agarwal has committed the offence of Money Laundering or the predicate offence has not been adjudicated. What has been decided is whether the property which was provisionally attached was the proceed of crime and whether the provisional order was to be confirmed or not. 6. Prima facie observations made against the appellant whether he is liable for the predicate offense and/or offense of money laundering has not been adjudicated nor this Tribunal has to decide whether the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s alleged against the appellant have been made out or not. On the basis of the observation made in the impugned order passed under Section 8(3) of PMLA, the appellant cannot be convicted and sentenced in the criminal cases. The apprehension of the learned Counsel is, therefore, without any legal basis in the facts and circumstances. 8. The legislation has predicated two parallel proceedings. One, with regard to the attachment of the properties derived and obtained from the proceeds of crime pending investigation and its confiscation after the guilt of the person in schedule offence is established before the concerned Court. The second action contemplated by the Act is, prosecution and punishment for commission of offence covered by Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such but essentially to freeze the proceeds of the crime. The fact that the respondents could have acted only if there was reason to believe that a person is in possession of proceeds of crime does not mean that the authorities at this stage are obliged to prove the fact beyond reasonable doubt that the property in possession in fact was proceeds of crime. All that the authority is required to show is that there was substantially probable cause to form an opinion that the property under attachment is proceeds of crime. 10. Perusal of Chapter III of PMLA also reveals that the orders passed under it are interlocutory in nature and such order do not decide finally whether an offence has been committed by an accused under Section 3 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffence of Money Laundering or not and whether the accused has committed the scheduled offence. 12. Any observation by the Adjudicating Authority will not and cannot impact the criminal cases pending against the appellant nor will impact any complaint filed against the said appellant under Sections 3 4 of PML Act, 2002 in any manner. In the criminal cases which are pending and which may be filed against the appellant, the Courts will have to come to an independent finding on the basis of documents and evidence produced before them, whether the offenses alleged against the appellant have been made out or not. On the basis of the observation made in the impugned order, the appellant cannot be convicted and sentenced in the criminal cases. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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