The Prevention of Money Laundering Act, 2002 proceedings are criminal in nature, necessitating appeals to be filed on the criminal side due to potential penalties including imprisonment and property confiscation.

JUDGMENT :

Bharati Dangre, J.

1. Bermaco Energy Systems Ltd has filed an Appeal u/s.42 of the Prevention of Money Laundering Act, 2002 (PMLA), assailing the order dated 03/08/2023 passed by the PMLA Appellate Tribunal, New Delhi in Miscellaneous Application No. MP-PMLA-11711/AHD/2023 in Appeal No. FPA-PMLA/5870-AHD/2023, since the Tribunal has dismissed its Miscellaneous Application, praying for stay of the notice of eviction dated 12/4/2023. The notice of eviction in ECIR/AMZO/11/2020/AD(HR)/581 issued by the Directorate of Enforcement called upon the appellant to vacate and hand over the peaceful possession of the attached properties within five days of its receipt, on the specific ground stated therein to the following effect:

“The present case is shown to be a case of organized crime, we find that the exception exist to invoke Section 8(4) to take possession of the property”.

In this background, the appellant had pleaded that there was no case of “organized crime” which was alleged or made out and even the notice of eviction was silent on the aspect of ‘money laundering’ being committed by the appellant.

2. We have heard learned Senior Counsel Mr. Aabad Ponda for the appellant and Mr Sandesh Patil for the respondent. Since at this stage, we are not concerned with the factual details, suffice it to note that on 21/09/2022, a provisional Attachment Order no.08/2022 was passed, which was confirmed by the Adjudicating Authority on 14/03/2023. On 12/04/2023, a notice for eviction was issued by the respondent and being aggrieved, the appellant preferred the Appeal before the Tribunal, praying for stay to the effect and implementation of the order dated 14/03/2023 and the notice of eviction.

On 03/08/2023, the PMLA Appellate Tribunal passed the impugned order rejecting the application filed by the appellant and on 04/08/2024, a fresh notice was issued to the appellant, calling upon it to vacate and hand over peaceful possession of the attached properties within five days of the receipt of the notice.

Before we could touch the merits of the matter, a question of grave significance arises as to whether the captioned Appeals challenging the impugned order should be entertained on the civil side or the criminal side, with Mr.Ponda, urging before us that the Appeals should lie on the criminal side and Mr.Patil arguing the other way round.

Various authorities have been cited before us in support of the rival contentions advanced and on going through the same, before we touch the merits of the Appeals, we deem it appropriate to pronounce upon the question “whether the captioned Appeals from the Adjudicating Authority under the provisions of Money Laundering Act, 2002 (for short ‘PMLA Act’) should lie on the civil side or criminal side of this Court?”.

3. Prevention of Money Laundering Act, 2002 is an Act to prevent money laundering and to provide for confiscation of property derived from, or involved in, money laundering and for matters connected therewith. Its statement of objects and reasons clearly focus upon the intention of the Parliament in bringing the special statute to deal with money laundering, which poses a serious threat not only to the financial system of countries, but also to their integrity and sovereignty, and a comprehensive legislation inter alia for preventing money-laundering, attachment of proceeds of crime, adjudication and confiscation thereof including vesting of it in the Central Government, setting up of agencies and mechanisms for coordinating measures for combating money-laundering money laundering etc, was therefore, introduced. The proposed legislation intended to include specific provisions for dealing with the menace of money laundering by entrusting the enforcement of the said Act to Directorate of Enforcement.

The PMLA underwent amendment, with an intention to deal with the global menace and with an aim to bring the Money Laundering legislation in the country on par with International standards and to obviate s