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TMI Blog2023 (3) TMI 1129X X X X Extracts X X X X X X X X Extracts X X X X ..... tter shall now proceed before the Adjudicating Authority under the provisions of PMLA Act, 2002 - Petitioner would be free to file an application before the Adjudicating Authority under Section 8 of the PMLA Act, 2002 and raise contentions that the subject property is not subject matter of any money laundering activities and was purchased much before the allegations were raised. Petition disposed off. - W.P.(C) 10048/2019 - - - Dated:- 22-3-2023 - JUSTICE PRATHIBA M. SINGH For the Petitioner Through: Mr. Kunal Tandon Ms. Richa Sandilya, Advs. (M: 72898 15907) For the Respondents Through: Mr. Zoheb Hossain, Adv. for Directorate of Enforcement with Mr. Vivek Gurnani, and Mr. Kavish Garach, Advs. (M: 9769842146) Mr. Tarun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The petitioner claimed that since the subject property was mortgaged with it, it was a secured creditor under the SARFAESI Act, whose rights assumed priority. On the other hand, the respondent no.1 has contended that under Section 8(8) of the PMLA, the subject property could not be released to the petitioner for finalization of the sale without an order in this regard being passed by the learned Special Judge, PMLA. In this regard, it may be apposite to refer to Section 8(8) of the PMLA which reads as under: 8) Where a property stands confiscated to the Central Government under sub-section (5), the Special Court, in such manner as may be prescribed, may also direct the Central Government to restore such confiscated property or part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ambling for recovery of monies from loan defaulters. The loan given to the Borrower by the petitioner Bank was substantial and was public money. In such circumstances, I am inclined to agree with the petitioner s contention that there is an urgent need to ensure that atleast some of the amounts, if not all, of the loan that was extended to the defaulter Borrower, are recovered by permitting finalization of the sale of the subject property, especially since such an action would be in public interest. 11. Inasmuch as the question of valuation is concerned, since the petitioner Bank had already conducted three valuations of the subject property - one each in September, October and November 2020, it cannot be said that the petitioner had n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was purchased way back in 2007, which was prior to the allegations of money laundering levelled against the purchasers of the subject property. 6. It is observed that the challenge is to a PAO dated 2nd September, 2019 and the purpose of ensuring that the subject property is duly sold and the amounts are realized, has been achieved. Further, the Petitioner has a remedy under Section 8(2) first proviso of the PMLA Act, 2002 to approach the Adjudicating Authority (PMLA) and to establish that the subject property is not involved in money laundering. In view thereof, the following directions are passed: (i) The matter shall now proceed before the Adjudicating Authority under the provisions of PMLA Act, 2002. (ii)The Petitioner wo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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