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RAVI CHEEMALAPATI
Design Tech Systems Pvt. Ltd. – Appellant
Versus
Union of India – Respondent
| Table of Content |
|---|
| 1. illegal attachment of assets (Para 1 , 2) |
| 2. prematurity of petition and exhaustion of remedies (Para 3 , 5 , 6) |
| 3. court’s authority over attachment orders (Para 4 , 10 , 11 , 12 , 13) |
| 4. distinct nature of pmla proceedings (Para 14 , 15 , 16 , 17) |
| 5. definition and scope of proceeds of crime (Para 18 , 19 , 20 , 21) |
| 6. interpretation of previous court orders (Para 22 , 23 , 24 , 25) |
| 7. affirmation of jurisdiction for the adjudicating authority (Para 26 , 27) |
| 8. dismissal of the writ petition (Para 28 , 29 , 30) |
JUDGMENT :
1. This writ petition is filed to declare the Provisional Attachment Order No.09/2023 dated 21.04.2023 passed by the Directorate of Enforcement provisionally attaching the Fixed Deposits of the petitioner to the tune of and initiation of Original Complaint vide OC No.1978 of 2023 before the Adjudicating Authority and show cause notice dated 26.05.2023 issued by the Adjudicating Authority to the petitioner under Section 8 (1) of the Prevention of Money Laundering (PMLA) Act, 2002, being illegal, arbitrary, contrary to the provision of the PMLA and in violation of Articles 19, 21 and 300-A of the Constitution of India.
2. The case of the petitioner, in br
Provisional Attachment Orders must have justified legal grounding, requiring explicit evidence of connections to alleged criminal activity, and prior judicial conclusions limit enforcement authority ....
The main legal principle established is that properties to be proceeded against under PMLA must be connected to the criminal activity, and ex facie illegal acts can be interfered with under Article 2....
Money Laundering – Provisional Attachment Order – Formation of opinion must bear a proximate and live nexus to purpose of protecting interest of Government revenue.
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.
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