ORDER :

The petitioners call in question a provisional attachment order in order No.5/2022 dated 01.08.2022, whereby, the movable and immovable properties of the petitioners are provisionally attached in exercise of powers conferred under Section 5(1) of the PMLA.

2. Shorn of unnecessary details, facts in brief, that leads the petitioners to this Court, are as follows:

The 1st petitioner runs certain businesses and manages supply and marketing of flowers purchased from farmers and circulates it into retail market through her establishment in the name and style of ‘M/s Keona’. The other business of the 1st petitioner concerns telecom infrastructure, through a company established for the purpose by name Kavveri Telecom Infrastructure Limited (hereinafter referred to as ‘the Company’ for short). A loan was availed by the Company at the hands of Dena Bank, J.C.Road Branch. Alleging that the loan had been used for purposes other than for which it had been taken, certain proceedings come to be initiated against the petitioners and several others by the Central Bureau of Investigation on 27.07.2017 in R.C.No.10 of 2017, against the Directors of the Company and arraigning some of the petitioners as accused in the said case. Pending investigation, the Assistant Director of Enforcement Directorate communicates to the Bank in which the petitioners had their accounts to be frozen on account of allegations against the 1st petitioner, in particular.

3. On completion of investigation, the CBI filed a final report in the case and the said case is pending as C.C. No.11606 of 2020 before the Special Court for offences punishable under Sections 420, 468, 471 and 120B of the IPC. Being aggrieved by the order of the Special Court taking cognizance of the offences and issuance of summons, petitioner Nos.1 to 4 and 6 preferred a writ petition before this Court in Writ Petition No.14431 of 2020 and Criminal Petition No.7949 of 2020. This Court by its order dated 10.12.2020 stayed all further proceedings against petitioner Nos.1 to 4 and 6 who are arrayed as accused.

4. On the basis of the case registered by the CBI in the aforesaid R.C. and in C.C.No.11606 of 2020, the Enforcement Directorate registers an Enforcement Case Information Report (‘ECIR’) in ECIR No.ECIR/BGZO/04/2019/AD-AKV/1541 for offences punishable under Sections 3 and 4 of the PMLA. In those proceedings on 01-08-2022, the Deputy Director of Enforcement Directorate passes a provisional order in Provisional Order No.5 of 2022 ordering provisional attachment of movable and immovable properties of the petitioners to the total value of Rs.40,14,26,327/-. The order of attachment so made by the 3rd respondent is what drives the petitioners to this Court in the subject petition.

5. Heard the learned senior counsel Sri Sandesh J.Chouta, appearing for the petitioners and Sri Madhukar Deshpande, learned counsel for the respondents/Enforcement Directorate.

6. The learned senior counsel would contend that registration of ECIR against the petitioners is wholly on the basis of the case registered by the CBI and the charge sheet so filed in those proceedings. Therefore, there is a link with the offences under the IPC as alleged in C.C.No.11606 of 2020. He would contend that the order taking cognizance in the aforesaid C.C.No.11606 of 2020 and all further proceedings are stayed by this Court. In the light of the interim order granted, the basis itself is stayed and, therefore, consequent action of attachment of movable and immovable are all required to be stayed, till the conclusion of the case pending in C.C.No.11606 of 2020.

6.1. He would place reliance upon a judgment of the Apex Court in the case of VIJAY MADANLAL CHOUDARY v. UNION OF INDIA, 2022 SCC Online SC 929 and a judgment rendered by the High Court of Madras following the judgment of the Apex Court in the case of B.SHANMUGAM AND OTHERS v. KARTHIK DASARI, DEPUTY DIRECTOR, DIRECTORATE OF ENFORCEMENT, 2022 SCC OnLine Mad.4417, to contend that the Apex