Properties acquired before the commission of an alleged offence cannot be attached under the Prevention of Money Laundering Act, and due process must be followed in such proceedings.

ORDER :

1. This writ petition is filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari calling for the records in Order dated 14.06.2023 in O.C.1890/2023 in PAO No.04/2022 dated 30.12.2022 in ECIR/HYZO/03/2017 passed by the Adjudicating Authority/2^nd respondent herein and to declare the same as illegal, arbitrary, unjust and without jurisdiction of PMLA, besides violative of fundamental rights of the petitioner guaranteed under Articles 14 & 21 of the Constitution of India and quash the order dated 14.06.2023.

2. The petitioner herein is a Director of M/s. Sri Bhuvaneswari Agri Processing & Marketing Private Limited and also engaged in public service activities. The General Manager, Retail Banking Group, IDBI Bank Limited, Hyderabad Zonal office had initially filed 3 written complaints dated 07.01.2017 to the Superintendent of Police, Head of the Branch, CBI, Anti Corruption Bureau, Visakhapatnam. Later, filed another complaint dated 15.12.2017 to the Superintendent of Police, Head of the Branch, CBI, Anti Corruption Bureau, Hyderabad complaining about the large scale fraud in the Guntur Branch of IDBI bank in the matter of processing and sanctioning loans under Kisan Credit Card (KCC) Short Term Loans for construction of ponds/tanks to farmers of fish farming/pisciculture.

3. The allegations made in 4 complaints in substance are that the Assistant General Manager & Relationship Manager (RM) of IDBI Bank Limited, Guntur Branch, Andhra Pradesh along with other unknown bank officials entered into criminal conspiracy with 2 mediators i.e. Mr. Ganduri Mallikarjuna Rao and Mada Srinivasa Rao and had processed, sanctioned loans by way of Kisan Credit Cards/Short Term Loans to 105 borrowers in and around Guntur District, without considering the eligibility norms, without verifying documents, without conducting any proper pre-sanction and post-sanction inspections, proper visit, without obtaining proper loan documents and securities, and without ensuring the end use of the loan; that after the sanction of loans, the loan amounts were disbursed to the savings accounts of the beneficiaries and that the loan proceeds were then diverted from the accounts of beneficiaries to the accounts of the aggregators and were later misappropriated causing pecuniary loss to tune of Rs.27.82 crores to the bank.

4. Based on 3 complaints, 3 F.I.Rs were registered by the Superintendent of Police, Head of the Branch, CBI, Anti Corruption Bureau, Visakhapatnam against accused therein for the offences punishable under Sections 120B, 420, 468, 471 of Indian Penal Code r/w Sections 13(2), 13(1)(d) of the Prevention of Corruption Act and single charge sheet dated 29.06.2018 wherein Central Bureau of Investigation, Anti Corruption Bureau, Visakhapatnam alleging that there was common conspiracy to cheat IDBI Bank, as the offences under Sections 120B, 420, 468, 471 of IPC are the offences under Indian Penal Code and offences under Sections 13(2), 13(1)(d) of the Prevention of Corruption Act are schedule offences by virtue of Sections 2(1) & 2(1)(y) of PMLA Act, a case in Enforcement Case Information Report vide ECIR/HYZO/03/2017 was registered and investigation was initiated under PML Act, 2002, based on3 F.I.Rs dated 23.01.2017.

5. It is further submitted that the petitioner is shown as 6^th defendant and M/s. Sri Bhuvaneswari Agri Processing & Marketing Private Limited is shown as 7^th defendant in O.C.No.1890 of 2023, basing on the complaint given by the 4^th respondent to the 2^nd respondent Authority.

6. It is further submitted that the petitioner is a resident of Guntur and he is a Director of M/s. Sri Bhuvaneswari Agri Processing & Marketing Private Limited. The General Manager, IDBI Hyderabad Zonal Office gave complaint to the Superintendent of Police, Head of Branch, CBI, ACB, Hyderabad and the same was registered vide RC 07/(A)/2018 dated 22.03.2018 arraying the petitioner as Accused No.4 along with other persons for the offences puni