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TMI Blog2022 (8) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... is considered fit to direct the petitioner-Company to raise all the contentions before the adjudicating authority with regard to the validity of the provisional attachment - in the facts and circumstances of the case and in the interest of justice, it is considered appropriate to permit the petitioner to operate the bank accounts with respect to the amounts deposited on or after the date of communication of this order; and the attachment made by the 1st respondent / Directorate of Enforcement with regard to the bank accounts of the petitioner-Company shall be continued subject to passing of further orders by the adjudicating authority. Petition disposed off. - Writ Petition No.22201 of 2022 - - - Dated:- 8-7-2022 - HON BLE Dr. JUSTI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt issued notices to the Chairman and others of the petitioner-Company and arrested them and sent them to judicial remand. Subsequently, they were released on regular bail. This Court passed orders permitting the petitioner- Company to continue with their business and also directed to de-freeze the bank accounts of the petitioner-Company which were frozen by banks in connection with F.I.R.No.124/2021, registered by Gachibowli P.S. Cyberabad Commissionerate. 4. Subsequently, the 1st respondent issued notices to respondent Nos.3 to 5 to provisionally attach the bank accounts of petitioner-Company. As a result, the petitioner-Company was denied access to their bank account and they were not allowed to operate the account as well. The conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e company engaged large number of distributors and they did rigorous marketing about the company thereby creating an opportunity of quick and easy money in the form of commission upon making further enrollments under one s downline in right side and left side in the binary scheme. In order to project their fraud pyramid scheme as a legitimate business, they introduced some products which were valued at 20% of the sale price which was worthless. Although there was no direct enrollment / introduction fee charged by the Company, it was mandatory to buy the products of the company for becoming a distributor. The company portrayed a picture that after joining the company, if a new member brings more and more enrollments into the company under hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, issued the impugned attachment order in the subject matter as per the proviso to Section 5 of the PMLA Act. 8. It was further contended by the 1st respondent that filing of the charge-sheet by the police in respect of past operations would clearly reflect that the company was doing illegal action. The investigation conducted revealed that the proceeds of crime were lying in the bank accounts of the petitioner. If the bank accounts were defreezed, there was enough potential to disburse the proceeds of crime by the accused which would cause irreparable loss to the country. There was no stopping the applicant to open new accounts as well. The petitioner had an alternative remedy to contest before the adjudicating authority to defreeze th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of material in his possession, that - (a) any person is in possession of any proceeds of crime; and (b) such proceeds of crime are likely to be concealed, transferred or dealt with in any manner which may result in frustrating any proceedings relating to confiscation of such proceeds of crime under this Chapter, he may, by order in writing, provisionally attach such property for a period not exceeding one hundred and eighty days from the date of the order, in such manner as may be prescribed: Provided that no such order of attachment shall be made unless, in relation to the scheduled offence, a report has been forwarded to a Magistrate under section 173 of the Code of Criminal Procedure, 1973 (2 of 1974), or a complaint has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the manner as may be prescribed and such Adjudicating Authority shall keep such order and material for such period as may be prescribed. (3) Every order of attachment made under sub-section (1) shall cease to have effect after the expiry of the period specified in that sub-section or on the date of an order made under 3[sub-section (3)] of section 8, whichever is earlier. (4) Nothing in this section shall prevent the person interested in the enjoyment of the immovable property attached under sub-section (1) from such enjoyment. Explanation .-For the purposes of this sub-section, person interested , in relation to any immovable property, includes all persons claiming or entitled to claim any interest in the property. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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