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TMI Blog2024 (10) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... r the property equivalent in value held within the country or abroad is also to be construed as proceeds of crime . Therefore, the circumstances indicated under Section 2(1)(u) of PMLA are that any property derived by a person, in result of criminal activity relating to a scheduled offence can be treated as proceeds of crime. The value of any such property or if such property is taken or held outside the country, then the property equivalent in value held within the country can be construed as proceeds of crime. Therefore, some properties, in result of criminal activity, is held outside the country, then the property equivalent in value held within the country can be attached by the Enforcement Directorate. The very object of the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ER S.M. SUBRAMANIAM J. The Criminal Original Petitions have been instituted under Section 482 of Cr.P.C. to quash the complaint in Spl.CC.No.02 of 2021 on the file of the Learned IX Additional Special Judge for CBI Cases, City Civil Court, at Chennai, dated 10.01.2021. The petitioners in the Criminal Original Petition Nos.6925, 6926 6927 of 2022 are the Accused Nos. 25, 21 22 respectively. FACTS OF THE CASE : 2. The IDBI Bank, DIFC Branch, Dubai, sanctioned first loan of 52 Million Euros (INR equivalent to 322.40 crores) to Accused-8, i.e., M/s.Win Wind Oy, Finland (hereinafter referred as WWOy). Accused-8 company is wholly subsidiary of Accused-7 i.e., M/s.Siva Industries Holding Ltd. Accused-16 is Ms.S.Jayalakshmi, who owns 86% of the sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce is present in the FIR registered by CBI in FIR No.9 of 2018, the Enforcement Directorate recorded ECIR under PMLA on 01.05.2018. Consequently, the Provisional Attachment Order in PAO No.1/2019 was issued on 31.01.2019. The Provisional Attachment Order was confirmed by the adjudicating authority on 13.01.2020. The respondent filed a complaint on 10.01.2021 under PMLA. The said complaint, dated 10.01.2021, is sought to be assailed in the present Criminal Original Petitions. ARGUMENTS ON BEHALF OF THE PETITIONERS: 5. The learned counsel for the petitioners, Mr.Nithyash Natarajan , would submit that the petitioners are the companies registered and therefore, vicarious liability cannot be fastened on the companies. A company, as an entity, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the country. Thus, the respondent have not established any proceeds of crime warranting initiation of proceedings under PMLA. Once Section 2(1)(u) of PMLA is not satisfied, the respondent cannot sustain the alleged offence of money laundering under Section 3 of the PMLA. Thus, the entire proceedings have to be quashed. 8. The learned counsel for the petitioners would rely on the Judgement of the Hon'ble Supreme Court of India in the case of Pavana Dibbur Vs. Directorate of Enforcement [Manu/SC/1271/2023] . wherein in paragraph no.17, the Hon'ble Supreme Court made the following observation: 17. .... The first property, ex-facie, cannot be said to have any connection with the proceeds of crime as the acts constituting the scheduled o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dingly, Provisional Attachment Order was made and it was confirmed by the adjudicating authority on 13.01.2020. Consequently, the respondent filed a complaint under PMLA on 11.01.2021 regarding the Provisional Attachment Order. Thus, the petitioners have to approach the Appellate Tribunal under Section 26 of PMLA. The Criminal Original Petitions, filed under Section 482, are not maintainable. Regarding the Provisional Attachment Order, the petitioners have to approach the Appellate Tribunal under Section 26 of PMLA. Thus, the present petitions are to be rejected. 12. The learned Additional Solicitor General would submit that with reference to the judgement of the Apex Court in Pavana Dibbur's case (supra), the facts are distinguishable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the economic interest of the country. Therefore, the petitioners cannot take a ground that the property attached were purchased prior to the scheduled offence between the years 2010 and 2017. Even in respect of the properties purchased prior to the scheduled offence under PMLA , such properties can be attached if the criminal activity relating to scheduled offence is taken or held outside the country, then the property equivalent in value held within the country can be attached. The said properties attached within the country need not be the properties purchased from and out of the proceeds of crime or criminal activity. The very purpose of the provision is to ensure that the property acquired in result of criminal activity held outside I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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