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TMI Blog2024 (9) TMI 1667X X X X Extracts X X X X X X X X Extracts X X X X ..... e extent of propriety in passing interim order in the nature of staying the provisional freezing order dated 13.08.2024, in the alternative, permitting the petitioners to operate the accounts on undertaking to keep the frozen amount intact. 2. Criminal Writ Petition No. 761/2024 is a lead petition filed by the Herald Commerce Limited having registered office at Calcatta, whilst other two petitions are filed by the registered Charitable Trust having registered office at the same place. The petitioner in the lead petition is a Company incorporated under the provisions of the Companies Act, 1956 indulging into the business of investment in shares and securities. The Demat and Bank accounts of the petitioners have been seized in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing has been committed and the property is proceeds of crime involved in money-laundering, the action is untenable. It is submitted that the impugned orders does not disclose any reason besides merely stating that for the purpose of investigation, the order of freezing has been passed. It is submitted that the petitioner - Company as well as other two petitioner Trusts have no nexus with the predicated offence since ECIR registered on that basis. It is submitted that besides the office of the petitioner Company and Trust in the same premises of the accused Company M/s Corporate Power Limited, there is no nexus. It is argued that one Abhishek Jayaswal, who has been arraigned as accused no.3 in predicated offence was related with Santosh Jain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court in case of Rui Chuang Technologies Pvt. Ltd. vs. Directorate of Enforcement and anr. (supra) i.e. permitting petitioners to operate the account by maintaining the balance of the amount, which stood to the credit in the frozen account on the date of freezing of the accounts. 6. Per contra, learned Deputy Solicitor General of India (DSGI) resisted to grant interim relief by contending that the PML Act is a special statute, which provids a specific mechanism for search, seizure, establishment of Adjudicating Authority for confirming/continuing the seizure and the appellate power therein. It is submitted that after following requisite procedure, within one month i.e. on 11.09.2024 the report has been forwarded to the Adjudicating Auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Directors, the predicated crime has been registered for the offence of Criminal conspiracy, cheating, forgery and thereby causing wrongful loss to the Consortium of Banks led by the Union Bank of India to the extent of Rs. 4037.87 Crore. The copy of the FIR along with annexure discloses that M/s Corporate Power Limited was formed as a Special Purpose Vehicle (SPV) promoted by Abhijeet Group for setting up Coal based power project. The Company has availed the finance from the Consortium Banks. It is alleged that the borrower has manipulated project cost statements and also diverted the bank funds to its subsidiaries. The reasons stated in the order under Section 17(1) of the PML Act also indicates that the accused of predicated offence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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