IN THE HIGH COURT OF MADHYA PRADESH
Sanjay Dwivedi, J.
Deepak Asai v. Union of India
Miscellaneous Criminal Case No. 9853 of 2025 (J); Decided on 27.3.2025
Nagarik Suraksha Sanhita, 2023 -- S. 528 -- Prevention of Money Laundering Act, 2002 -- Ss. 2(u), 5(5) and 6 -- quashing of proceedings -- order passed for provisional attachment -- interference in decision-making process at this stage not appropriate -- ample opportunity of hearing available to petitioners before final order of attachment -- directed to avail aforesaid statutory remedy -- however, free to challenge final order of attachment as per available remedy. (2006) 6 SCC 338 and W. P. No. 15093 of 2023 decided on 11.3.2024 (AP) referred to. [Paras 7 & 8]
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ORDER
1. The counsel for the petitioners is heard on the question of admission and also on interim relief.
2. This petition is under section 528 of Bharatiya Nagrik Suraksha Sanhita, 2023 (BNSS) seeking quashing of provisional attachment order bearing No.02/2025 dated 30.1.2025.
3. Learned senior counsel appearing for the petitioners has submitted that the office of respondent No.2 has passed a provision attachment order which is impugned in this petition and quashing of the same is being sought for by the petitioners mainly on the ground that the order passed by the authority is beyond jurisdiction attaching the properties mentioned in Schedule-I, II and III, particularly the properties mentioned in Schedule-C because the said properties do not fall within the definition of “proceeds of crime” as defined under the provisions of the Prevention of Money Laundering Act, 2002 (hereinafter referred to as the ‘PMLA Act, 2002’). Shri Datt has further submitted that the order has been passed on 30.1.2025 attaching the properties which are related to the retiral dues of petitioner No.1 and attaching the same is in contravention of section 11 of Pension Act, 1871 and section 13 of Payment of Gratuity Act, 1972. According to the counsel for the petitioners, the properties are shown to have been attached and scheduled, especially Schedule-III of the impugned order is in fact the asset relating to the amount of retiral dues which is received by petitioner No.1 after his superannuation from service. Shri Datt has submitted that the order of attachment could not have been passed in relation to the said properties because they do not fall within the ambit of “proceeds of crime” and has no connection with the provision of Prevention of Corruption Act. The counsel for the petitioners has submitted that the properties which are said to have been attached and mentioned in Schedule-III attached with the impugned order have nothing to do with the income said to have been received by the petitioners illegally but it is an amount invested by the petitioners out of the salary that was paid to him by the employer for performing the services and in any manner the same cannot be termed as asset falling within the ambit of “proceeds of crime” and, therefore, it is claimed that the said order in respect of provisional attachment of the properties shown in Schedule-III should be quashed. The counsel for the petitioners has relied upon a judgment reported in (2000)6 SCC 338 (State of M.P. v. Mohanlal Soni). He has also submitted that the properties shown to have been provisionally attached mentioned in Schedule-III are not of the said period i.e. from October 1995 to 12.12.2010 and, therefore, even otherwise those cannot be considered to be “proceeds of crime” and cannot be proposed to be attached.
4. Shri Vikram Singh, learned counsel appearing for the respondents has submitted that this petition is pre-mature because it is only an order of provisional attachment and it is yet to be scrutinized and final order of attachment shall be passed by the adjudicating authority and if the order of provisional attachment is passed by the office of respondent No.2, then from the date of said attachment, he will make a complaint within a period of 30 days therefrom before the adjudicating authority as provided under section 5(5) of PMLA Act, 2002 and the adjudicating authority as per section 6 of PMLA Act, 2002 after giving opportunity of hearing shall pass final order of attachment. Therefore, Shri Singh has submitted that whatever grievance and submissions are being raised before this Court, the petitioners shall get an opportunity to raise all these grounds before the adjudicating authority because the statutory remedy is available and it is not a final order of attachment and considering the submissions made by counsel for the petitioners, order of provisional attachment can be set aside. He has further submitted that the statutory remedy is available and a forum is a
The definition of 'proceeds of crime' under PMLA is broad enough to include properties acquired before the investigation, affirming the authority's jurisdiction.
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.
Money Laundering – Provisional Attachment Order – Formation of opinion must bear a proximate and live nexus to purpose of protecting interest of Government revenue.
The court established that failure to provide notice to a lawful property owner before attachment under the Prevention of Money Laundering Act violates legal requirements and principles of natural ju....
The court established that mandatory notice requirements under the Prevention of Money Laundering Act must be adhered to, or the attachment order is invalid.
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....
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