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BECHU KURIAN THOMAS
Davy Varghese, S/o Varghese – Appellant
Versus
Deputy Director, Directorate Of Enforcement, Department Of Revenue, Ministry Of Finance, Government Of India, Cochin Zonal Office, Kanoos Castle, Mullassery Canal Road West, Ernakulam District – Respondent
JUDGMENT :
Bechu Kurian Thomas, J.
A septuagenarian, who claims to be suffering from a terminal illness, along with his wife, has approached this Court seeking to quash the order of provisional attachment issued under the Prevention of Money-Laundering Act, 2002 (for short ‘PML Act’). According to the petitioners, by the attachment, they have been wholly crippled to even manage the day-to-day living as all their immovable properties, bank accounts and all their vehicles have been attached.
2. Petitioners allege that their family has business interests in hosiery, textiles and chit funds apart from real estate. They contend that loans were availed by them from financial institutions for their business activities and were regularly repaying them as well. According to the petitioners, in the year 2015, they approached the Karuvannur Service Co-operative Bank No.112 (for short ‘the Bank’) for an overdraft facility for their business ventures. After satisfaction of the security offered, which included their residential property, a total loan of Rs.3.49 Crores was granted in the name of the first petitioner and his four business associates. Petitioners allege that the security offered by th
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 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....
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....
Money Laundering – Provisional Attachment Order – Formation of opinion must bear a proximate and live nexus to purpose of protecting interest of Government revenue.
Properties purchased before the commission of the offence, cannot fall within the definition of “proceeds of crime” and cannot be attached or confiscated under the Act. Consequently, the attachment a....
Properties acquired before the commission of an alleged offence cannot be attached under the Prevention of Money Laundering Act, and due process must be followed in such proceedings.
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