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TMI Blog2024 (8) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... session of any proceeds of crime and are likely to conceal or create any encumbrance in order to frustrate any proceedings relating to confiscation of proceeds of crime, the ED would be justified in issuing a provisional attachment order of such properties and thereafter seek for confirmation of the attachment by making a complaint before the Adjudicating Authority. The provisional attachment order under Section 5(1) of PMLA shall be valid only for a period of 180 days. Under Sub-section 3 of Section 5, the provisional attachment made under Sub-section 1, ceased to have effect after a period of 180 days. Admittedly, when the ED has sought for confirmation of the provisional attachment of movable and immovable properties of the petitioners b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same, these petitions are disposed of through a common order. 4. The Central Crime Branch, Chennai, had registered a First Information Report in FIR.No.187/2022 dated 05.09.2022, for the offences under Sections 406, 420, 465, 468, 471 read with Section 120B of the Indian Penal Code (IPC). Since the offences filed under Sections 120B, 420 and 471 IPC are Scheduled Offences under Part A Paragraph 1 of the schedule appended to the PMLA, the Enforcement Directorate (ED)/4th respondent was of the view that a prima facie case for an offence under Section 3 punishable under Section 4 of PMLA have been made out and thus had recorded an ECIR bearing No.ECIR/CEZO-I/63/2022 and commenced investigations under the provisions of PMLA. 5. During the cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Paragraph No.467 of Vijay Madanlal case is the ratio. It is instructive and we respectfully follow paragraph No.467 of Vijay Madanlal case. In the case on hand, to state with specificity, what is applicable is paragraph No.467(v)(d) of Vijay Madanlal case. This is a case where there is a closure of the predicate offence and therefore, we say that paragraph No.467(v)(d) of Vijay Madanlal case is applicable in all force to the case on hand. In any event, this paragraph No.467(v)(d) of Vijay Madanlal case is now subject to the caveat in Emta Coal case, i.e., caveat that if predicate offence is resuscitated or opened, the entire matter will get revived. The rights are preserved as done in Emta Coal case by Hon'ble Supreme Court. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are disposed of as closed. Crl.MP No.9244 of 2023 is dismissed. There shall be no order as to costs. 7. In spite of dropping of the predicate offences, as well as quashing of the ECIR proceedings, the ED had not responded to the representations made by the petitioners for the release of their attached movable and immovable properties, owing to which inaction, the present Criminal Original Petitions have been filed. 8. The learned counsel for the petitioners submitted that when the criminal case for the predicate offences have already been dropped, the consequential action and further proceedings under the provisions of the PMLA cannot be legally sustained and hence, the ED is bound to release all the attached properties of the petitioners. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 5, the provisional attachment made under Sub-section 1, ceased to have effect after a period of 180 days. Admittedly, when the ED has sought for confirmation of the provisional attachment of movable and immovable properties of the petitioners before the Adjudicating Authority and the same has been dropped, the provisional attachment also would lapse, in view of the limitation prescribed under Section 5(1). Consequently, it requires to be declared that as on date, there is no attachment at all over the subject properties. 13. This apart, when the Investigating Authority of the criminal case in FIR No.187/2022 for the scheduled offences have themselves dropped the complaint, which has been accepted by the jurisdictional Magistrate, the co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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