JUDGMENT :

ILESH J. VORA, J.

1. The present writ petition is preferred under Articles 226 and 227 of the Constitution of India, for quashing of the provisional attachment Order No. 5/2020 dated 17.12.2020 issued in ECIR/01/STSZO/2017, by Deputy Director of Enforcement, Surat, Sub-Zonal Office, Surat and consequential proceedings, under the provision of the Prevention of Money Laundering Act, 2002 (“PML Act 2002” for short).

2. Facts and circumstances giving rise to file present petition are as under:

(i) The respondent No. 2, in exercise of its power under Section 5(1) of the Act, 2002, passed provisional attachment Order No. 5/2020, dated 17.12.2020, provisionally attaching properties of the petitioners, for a period of 180 days.

(ii) The respondent No. 2 thereafter in exercise of its power under Section 5 (5) of the PML Act, 2002 filed a complaint being O.C. No. 1382/2021 before the adjudicating authority on 24.12.2020.

(iii) The respondent No. 3 - Adjudicating Authority after hearing the affected parties, confirmed the order of provisional attachment and held that the properties provisionally attached by the respondent No. 2 are “proceeds of crime” in terms of Section 2(1)(u) of the PML Act, 2002.

(iv) Necessary facts giving rise to initiation of the proceedings under the PML Act, 2002, are as under:

(a) The petitioner No. 1 Hemanshu Shah was the partner of M/s. Shah Maganlal Gulabchand Choksi. The partnership firm working as a bullion traders. Income Tax Department, Gandhidham, received information with regard to high value deposits of old currency notes in the bank accounts of M/s. S.N. Traders and M/s. Nirav and Co. The information transmitted to the Surat Income Tax Office and accordingly, during the course of search proceedings in the premises of petitioners and their related firms, it was noticed that Rs. 36.17 crore during the period from 10.11.2016 to 05.12.2016 was credited in the account of M/s. Nirav and Co. and the same was transferred in the partnership firm of the petitioner No. 1 and other related entities. The Income Tax office, Surat, filed two complaints with CBI, Gandhinagar, under section 120(b), 467, 468, 471 of Indian Penal Code and Section 13(2), 13(1)(d) of the Prevention of Corruption Act, against the bank officials and present petitioner No. 1 and others.

(b) The investigation under PML Act, 2002, was initiated on 11.01.2017 under ECIR/01/STSZO/2017 against the petitioner No. 1 and others.

(c) During the course of investigation, it was revealed that, the bank account in the name of M/s. Nirav and Co. maintained with Surat People’s Coop. Bank, was handled and operated by petitioner No. 1. He had with the aid of one Maharshi Chokas, deposited Rs. 36.17 crore during post demonetization period, so as to enable him to convert unaccounted black money into banking system, for which he had misused photo identity and other supporting documents of Nirav Shah. The amount so deposited was transferred to the bank account of M/s. Maganlal Gulabchand Shah, wherein, the petitioner No. 1 Hemanshu Shah was one of the partners.

(d) During the course of investigation, the authority had called for properties details from the Revenue Department and Sub-Registrar, Surat. The department submitted certified copy of sale deed dated 27.05.2010, pertaining to one residential property being Flat No. 16, Building No. 3, Gyandeep Coop. Hous. Society, Surat, admeasuring 97.85 sq. mtrs. valued at Rs. 20 lacs. The residential flat property purchased by the petitioners and later on, the petitioner No. 1 sold his share to his wife.

(e) The authority further noticed during the investigation that, the commercial property, admeasuring 1800 sq. ft. situated at parsi Sheri, Navapura, Surat, was purchased by M/s. Maganlal Gulabchand Choksi on 16.03.1998 by registered sale deed.

(f) During the investigation, it is found that one residential property No. 538/2, situated at Ketankunj Building Nanpura, Surat was purchased in the name of petitioner No. 1 an