Point of Law: if the property is confiscated by the Central Government, such claimant with legitimate interest in the property or who may have suffered a quantifiable loss as a result of offence of money laundering may move appropriate application for restoration of such confiscated property or a part thereof

JUDGMENT :

1. The petitioners have preferred this writ petition with the following prayers:-

“It is therefore most humbly prayed that:

a. this writ petition may kindly be allowed and this Hon’ble Court may graciously be pleased to issue writ, order or any other direction to quash and set aside Impugned Order dated 25.06.2021 passed by Deputy Director, Enforcement Directorate; and

b. by appropriate writ, order or direction, the Enforcement Directorate be directed not to interfere in any manner whatsoever, in the completion of project as per Scheme approved by RERA and not to issue any directions to any authority against registration of flats of residential apartment, project namely “Hydepark” situated at Durgapur, Jaipur; and c. Any other order, relief or direction which this Hon’ble High Court may deem fit and proper be passed in favour of the Petitioner.”

2. Learned counsel for petitioners submits that the petitioner association is formed with the object to secure and safeguard the interest of more than 150 allottees of flats in the residential apartment namely, Hyde-park situated at Durgapura, Jaipur. In order to safeguard the interests of the members of the petitioner association who are allottees too and would be purchasing flats namely Hyde-park, a complaint was registered with the Rajasthan Real Estate Regulatory Authority (hereinafter referred to as “RERA”. An order came to be passed on 10.02.2021 after hearing the Directorate of Enforcement who had taken up a case under the Prevention of Money Laundering Act, 2002 (hereinafter referred to as “PMLA, 2002”) against the builders namely Adarsh Build-state Ltd. Jaipur and were proceeding to attach the property where the flats were to be constructed.

3. After hearing the Enforcement Directorate, the RERA passed a detailed order as under:-

“97. With this view in mind, resultant of the arguments that have been discussed in detail in the above paragraphs, we in exercise of the powers conferred under section 6, 7, 8, 34, 36, 37 and 38 of the Act, order as follows:

1. The registration of the project bearing registration No. RAJ/P/2018/604 shall remain revoked as ordered by this Authority in its order dated 16.01.2020;

2. The development agreement signed between the Promoter Respondent and the landowners having become incapable of being executed or acted upon by the Promoter Respondent on account of the Promoter Respondent facing serious multi-crore money laundering charges and being investigated by the Enforcement Directorate, is terminated;

3. The Promoter Respondent is declared defaulter in terms of Section 7 (4) (a) of the Act and is barred from accessing its website in relation to this project. The Registrar of the Authority is directed to display his photograph on the website as a defaulter and inform other Real Estate Regulatory Authorities in other States about the revocation of registration of this project.

4. The registration of the project bearing Registration No. RAJ/P/2018/604 is extended for a period of one year from the date of the order of such extension subject to the new promoter completing the formalities for extension. Any further extension will be considered by this Authority subject to the satisfactory progress in the completion of the project.

5. The scheme as submitted jointly by the Complainant Association and the landowners including the terms and conditions that are binding on all the stakeholders (the new developer, the members of the Complainant Association and the landowners) is accorded approval of this Authority subject to the following additional conditions provided that these additional conditions shall prevail over any provisions of the Scheme as submitted in case they are inconsistent in any manner with these additional conditions:

(i) That the scheme is sent to the State Government for consultation and approval as required under section 8 of the Act before starting its implementation;

(ii) An escrow bank account is opened in the name of the