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TMI Blog2020 (12) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent No.1- M/s.Diamond Power Infrastructure Limited and learned advocate Mr.Seshagiri with learned advocate Mr.Gaurav Lakhwani for respondent No.2 in respect of admission of the appeal as well as grant or otherwise of interim stay, at length. 2. The appeal is directed against judgment dated 18th June, 2019 passed by the Appellate Tribunal, Prevention of Money Laundering Act, 2002 in the Appeal No.5595/AHD/2019 and No.5596/AHD/2019 which are filed by respondent No.2 Bank herein as well as in Appeal No.2742/AHD/ 2019 preferred by the respondent-Resolution Professional for M/s.Diamond Power Infrastructure Limited. Thereby the Appellate Tribunal has released the attachment over the properties of M/s.Diamond Power Infrastructure Limited (DPI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter of Credits and 16 of such Letters of Credit amounted to Rs. 110.79 crores, it was stated in the F.I.R. 3.1 It was next stated that M/s.DPIL invested Rs. 16.70 crores in their group companies out of their Cash Credit limit which was in violation of the terms of the sanction of the facility. Account of M/s.DPIL became overdue in the year 2014. The banks resorted to Corrective Action Plan and restructured the accounts on 31st March, 2015. The outstanding loan of Rs. 828.42 crores was converted into equity and disbursed among the consortium members. 3.2 The Directorate General of Goods and Service Tax Intelligence issued show-cause notice to M/s.DPIL for fraudulently availing CENVAT credit to the tune of Rs. 100.18 crores by submitting b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect of the properties came to be passed, and that it was confirmed by the Adjudicating Authority after examining the facts in detail. It was further submitted by learned Additional Solicitor General that respondent No.2 preferred an application on 23rd March, 2018 under Section 7 of the Insolvency and Bankruptcy Code, 2016 before the National Company Law Tribunal, Ahmedabad Bench, for initiating corporate insolvency proceedings against M/s.DPIL. The said proceedings were admitted by the Tribunal on 24th August, 2018. The provisional attachment order was passed on 24th April, 2018. 4.1 It was submitted that the Tribunal therefore misdirected itself in recording in paragraph No.44 that the provisional attachment was subsequent to the mora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uired to be considered. Accordingly, the present Appeal is admitted. 6. It has to be considered that the attachment orders by the Prevention of Money Laundering authorities came to be issued subsequent to the Central Bureau of Investigation having filed the F.I.R. and chargesheet against M/s.DPIL and after thorough investigation. When prima facie case has been made out under the Prevention of Money Laundering Act, attachment of the properties as per the orders passed by the authorities could not be said to be unjustified in law. Section 2(1)(u) of the PML Act, 2002 defines the proceeds of crime as a property derived out of criminal activity or even the value of any such property. 6.1 When the properties in question are held and maintained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants. A huge amount of money and its fraudulent dealing by various means are involved. The attachment of properties of M/s.DPIL, during the pendency of proceedings against them under the Act and until they are culminated on merits, could be said to be eminently proper and justified on facts and in law. The Appellate Tribunal could not have vacated the attachment orders duly passed. 7. In the aforesaid view, the order dated 18th June, 2019 passed by the Appellate Tribunal, PMLA, New Delhi, which is impugned in this appeal whereby attachment of the properties of M/s.DPIL is released shall remain stayed till the final outcome of this appeal. As the said order is stayed, the original order dated 24th April, 2018 by the competent auth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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