1. In exercise of power vested by Section 5(1) of Prevention of Money Laundering Act, 2002 ( Act 15 of 2010), (for short ‘the Act’), the Joint Director, Directorate of Enforcement, Ministry of Finance, Government of India, passed order of provisional attachment of the properties mentioned in para-29 of the order. One of the properties attached is 73,99,99,994 shares of Rs.2/-each of M/s. Nava Bharat Energy India Limited (NBEIL) for value of Rs.147,99,99,988/-. The order of provisional attachment is assailed in this writ petition by the Nava Bharat Projects Limited, Nava Bharat Energy India Limited and Sri P.Trivikrama Prasad, Director on Board of Nava Bharat Projects Limited and Nava Bharat Energy India Limited.

2. Nava Bharat Power Private Limited (NPPL) was promoted by Sri P.Trivikrama Prasad and Sri Y.Harichandra Prasad with equal shares. To achieve primary objective to generate power, the company entered into power purchase agreement with Power Trading Corporation (PTC) in January, 2006 and entered into memorandum of understanding with Government of Odisha. The Government of Odisha promised to provide 42 cusecs of water from river Brahmani. NPPL promised to supply 25% of the power generated to the State of Odisha. Mahanadi Coal Fields Limited issued letter of assurance for supply of 2.404 MTPA of “F” grade coal. NPPL signed power purchase agreement with GRIDCO, where under GRIDCO agreed to purchase 25% of the power generated by NPPL.

3. On 13.11.2006, advertisement was published on behalf of the Government of India, inviting companies to apply for allotment of coal blocks for captive utilization of power plants. On the same day, NPPL entered into memorandum of understanding with Globeleq Singapore Private Limited. On 23.11.2006, Odisha Government recommended name of NPPL for allocation of coal blocks for its power projects. By order dated 17.01.2008, the Ministry of Coal, Government of India, conveyed decision to allocate the coal blocks in Rampia and Dipside locations. Insofar as Rampia is concerned, petitioner is part of consortium of six companies. On 19.02.2008, joint venture company i.e., Rampia Coalmine Energy Private Limited was incorporated by the six consortium companies. In July, 2008, ESSAR Power Limited agreed to purchase entire share holding of NPPL for a consideration of Rs.169 crores.

4. Basing on a reference from the Central Vigilance Commission on allegations of corruption in the matter of allocation of coal blocks to private companies, the Central Bureau of Investigation registered FIR in RC 219/2012 E 0011 on 03.09.2012 under sections 120B and 420 of Indian Penal Code, Section 13(2) read with 13(1)(d) of Prevention of Corruption Act. On completion of investigation, CBI filed charge sheet No.1 dated 10.03.2014. Sri Y.Harish Chandra Prasad, P.Trivikrama Prasad and Nava Bharat Power Privte Limited are accused Nos. 1, 2 and 3 respectively.

5. Consequent to the registration of the crime by CBI, the Directorate of Enforcement issued ECIR/02/HYZO/2013, dated 22.07.2014 and initiated investigation under the Prevention of Money Laundering Act, 2002 (Act, 2002) against M/s.NPPL and others. The Enforcement Directorate conducted detailed investigation. Having found in the investigation that the NPPL gave a mis-declaration regarding their net worth with an intention to get allotment of coal blocks, that after allotment of coal blocks, accused Nos.1 and 2 have offered to sell their equity on the same day i.e., 12.07.2010, that NPPL has not made any investment on plant and machinery and that value of tangible assets was very insignificant prior to allotment of coal blocks to get such high premium and no plant and machinery was installed in the project and no commercial production of electricity generated and, therefore, there was no consideration of the net worth of the company to get such high premium and thus the premium price was only on account of coal blocks allotment and such allotment was made based