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TMI Blog2024 (8) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... able in the hands of the appellant, either it is vanish or syphoned off then the property of the equivalent value can be attached and for that reason the words value thereof does not specify acquisition of the property prior or subsequent to the commission of crime. There are no merit in the appeal in reference to the issues raised in the present case - The appellant has failed to disclose the source of acquisition of the property even in the appeal. The vague statements of fact regarding acquisition of property has been made by the appellant without giving detail description of the sources by which it was acquired. The Adjudicating Authority has given reference to the Income Tax Return submitted by the appellant Shamshad where income was shown between 4 to 5 lakhs only and therefore, it is found that the Adjudicating Authority has meticulously considered each aspect of the matter however appeal has been pressed only on few grounds and has been dealt with by us finding no merit in any of the ground, the appeal would fail. Appeal dismissed. - MUNISHWAR NATH BHANDARI AND SHRI BALESH KUMAR For the Appellant : Shri A.K. Pathak, Advocate For the Respondent : Ms. Nidhi Raman, Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rector of Enforcement Directorate reported in 2020 SCC online Punjab Haryana High Court 738 has also been given. It is further submitted that the impugned order passed by the Adjudicating Authority does not specify as to which property is attached for the equivalent value to the proceeds of crime. Thus, a cryptic order has been passed by the Adjudicating Authority. In view of the above, prayer was made to cause interference in the impugned order. It may be set aside along with the Provisional Attachment Order. The counsel for the appellant did not raise any other issue though he was having liberty to raise the arguments other then the issue orally argued before the Tribunal and accordingly, the respondents were called upon to contest the appeal. The learned counsel for the respondent contested the appeal not only in reference to the FIR lodged initially by State Vigilance Bureau Haryana on 22.07.2015 for the offence under Section 409, 420, 467, 468, 471 120B IPC apart from Section 13(1) of Prevention of Corruption Act, 1988 but the ECIR. The FIR was registered mainly against one Naresh Kumar Shoekhand, the then District Revenue Officer cum Land Acquisition Collector and Shri Bheem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to borrow money as a soft loan from the appellant and was repaying it. The monetary transactions were existing from the year 2009 onwards and huge amount was borrowed by Chandra Shekhar and even re-paid. It is however pleaded in the appeal that the appellant was having qualification only of 4th Class thus not acquainted with online transaction. The money was sent in the bank account by Chandra Sekhar taking advantage of illiteracy of the appellant. The appellant has thus admitted receipt of money through a bank transaction. It is however submitted that the appellant had given 70 lakhs to Chandra Shekhar whereas in the statement of Chandra Shekhar recorded under Section 50 of the Act of 2002, the fact aforesaid has been denied though he has admitted receipt of Rs. 20 lakhs from the appellant. The fact now remains that even if the appellant was having monetary transaction with Chandra Shekhar, the amount was received by him through the banking channel not of Rs. 20 Lakhs but a sum of Rs. 1,30,00,000/- (One Crore Thirty Lakhs). Why he did not make enquiry from Chandra Shekhar about the receipt of the amount. It would be when he was knowing it well that from where the money has come. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceeds of crime has three limbs as under: Any property derived or obtained directly or indirectly as a result of criminal activity relating to scheduled offence; Value of property derived or obtained from criminal activity; Property equivalent in value held in India or outside where property obtained or derived from criminal activity is taken or held outside the country. The reference of the judgment of Seema Garg (Supra) has been given however it was analyzed by Delhi High Court in the case of Enforcement Directorate Vs. Axis Bank and Prakash Industries Vs. Directorate of Enforcement reported in 2019 SCC Online Dec 7854 and 2022 SCC Online Dec 2087 respectively. The interpretation to the definition of proceeds of crime has been given in detail. The relevant para of the Judgment in the case of Axis Bank (Supra) is quoted hereunder: 106. Among the three kinds of attachable properties mentioned above, the first may be referred to, for sake of convenience, as tainted property in as much as there would assumably be evidence to prima facie show that the source of (or consideration for) its acquisition is the product of specified crime, the essence of money laundering being its projectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4; as well as ―untainted property ‖ with it being permissible to proceed against the latter provided it is being attached as equal to the value of any such property or property equivalent in value held within the country or abroad . However, both the italicised categories would be liable to be invoked in cases where the actual tainted property cannot be traced or found out. It is only where the respondents are unable to discover the tainted property that they can take the statutory recourse to move against properties which may fall within the ambit of ―value of any such property ‖ or ―property equivalent in value held within the country or abroad ‖. To the aforesaid limited extent, properties purchased prior to 01 July 2005 may also become vulnerable and subject to action under the Act. However, enforcement action against such properties would have to satisfy the tests and safeguards as propounded in Axis Bank with the learned Judge observing that in such a situation it would have to be established that the person accused of money laundering had an interest in such property at least till the time that he indulged in the proscribed criminal activi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence or the value of any such property or where such property is taken or held outside the country, then the property of equivalent in value held within the country. The explanation added by way of an amendment makes it clear that the `proceeds of crime includes the property not only derived or obtained from the scheduled offence but also any property which may directly or indirectly be derived or obtained as a result of any criminal activity relatable to the scheduled offence. 14. The definition of `proceeds of crime was given interpretation by the Apex Court in the case of Vijay Madanlal Choudhary and Others v. Union of India Ors. reported in (2022) SCC Online 929. It is held that to fall in the definition of `proceeds of crime , it can be even a property of equivalent in value to the proceeds out of the crime. Meaning thereby, it is not necessary that to fall in the definition `proceeds of crime it should always be a property directly or indirectly derived or obtained as a result of criminal activity rather if somebody has obtained and derived any property out of the crime an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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