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BECHU KURIAN THOMAS
Satish Motilal Bidri – Appellant
Versus
Union Of India – Respondent
JUDGMENT :
During the course of an investigation under the provisions of the Prevention of Money Laundering Act, 2002 (for short ‘PMLA’) against a proprietary concern called M/s. Masters Finserv, and others, the bank accounts of the petitioner were frozen by an order dated 05.09.2023. While the challenge against the freezing of bank accounts was pending consideration in this writ petition, an order of provisional attachment was issued on 22.05.2024, attaching the very same bank accounts and an immovable property of the petitioner. The subsequent order of attachment was incorporated as an additional challenge after amending the writ petition. Thus petitioner, inter alia, challenges the freezing of his bank accounts and the provisional order of attachment issued under section 5 of PMLA, in this petition under Article 226 of the Constitution of India.
2. Petitioner is a businessman having an electronic shop at Sholapur, Maharashtra and claims that he has no connection with the business of Masters Finserv or its proprietor. During September 2023, petitioner was informed by his bankers that his bank accounts maintained with the IDFC Bank, ICCI Bank and Federal Bank were frozen under order
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....
Properties acquired prior to the commission of a predicate offence cannot be attached under the Prevention of Money-Laundering Act, as they do not constitute proceeds of crime.
The court emphasizes that when statutory remedies are available, the extraordinary jurisdiction under Article 226 of the Constitution should not be exercised unless there are exceptional reasons to d....
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 court upheld the necessity of exhausting statutory remedies under the Prevention of Money Laundering Act before invoking writ jurisdiction, affirming that 'proceeds of crime' includes property in....
Section 5 of the PMLA Act, empowers attachment and provisional attachment to protect the proceeds of crime being frustrated from confiscation by way of concealment, transfer etc.
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