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PRATHIBA M. SINGH
Omkar Realtors And Developers Private Limited – Appellant
Versus
Adjudicating Authority, Prevention of Money Laundering Through Its Registrar – Respondent
In the case discussed, the court emphasized that the attachment of properties under PMLA is contingent upon the existence of a scheduled offence and the ongoing criminal proceedings related to that offence. Specifically, if the scheduled offence has been finally discharged, acquitted, or closed by the competent court, and there is no pending criminal enquiry or trial, then the attachment of properties, including ancestral property, would no longer be valid or permissible.
The court clarified that once the proceedings related to the scheduled offence are closed and the accused are discharged or acquitted, the basis for attaching properties, including ancestral properties, ceases to exist. This is because the attachment is fundamentally linked to the existence of proceeds of crime derived from a scheduled offence, which must be legally established and pending.
Therefore, in the context of the case, the court held that ancestral properties cannot be validly attached under PMLA if the underlying scheduled offence has been conclusively closed and the persons involved have been discharged or acquitted, indicating that the attachment is not sustainable in such circumstances.
JUDGMENT
Prathiba M. Singh, J. (Oral)
1. This hearing has been done through hybrid mode.
2. The present petition has been filed by M/s Omkar Realtors and Developers Private Limited seeking setting aside/quashing of the Provisional Attachment Order No. PAO/MBZO-II/1/2022 (hereinafter 'PAO') dated 14th January, 2022 passed by the Directorate of Enforcement (ED) under Section 5(1) of the Prevention of Money Laundering Act, 2002 (hereinafter 'PMLA'). The present petition also seeks the release of the attached property under the impugned PAO.
3. The present case was first listed on 2nd August, 2022 when Mr. Anurag Ahluwalia, Ld. Counsel for the Respondents made a preliminary objection with regards to the maintainability of the petition on the ground of lack of territorial jurisdiction. The said preliminary objection was rejected, placing reliance on order dated 2nd June, 2022 passed in W.P. (C) 6354/2022 titled 'M/S Incred Financial Services Ltd. vs. Deputy Director, Directorate of Enforcement'. In addition, on the said date, status quo was directed. The relevant extract of the order directing status quo is extracted as under:
6. Till the next date of listing, the respondent shall stan
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