JUDGMENT:

UJJAL BHUYAN, J.

Heard Mr. Atul Nanda, learned Senior Counsel for Mr. Tarun G. Reddy, learned counsel for the appellant and Mr. T. Surya Karan Reddy, learned Additional Solicitor General of India for Mr. Anil Prasad Tiwari, learned standing counsel, Enforcement Directorate for the respondent.

2. This is an appeal under Section 42 of the Prevention of Money Laundering Act, 2002 assailing the order dated 26.07.2019 passed by the Appellate Tribunal for Prevention of Money Laundering Act at New Delhi (briefly, ‘the Appellate Tribunal’ hereinafter) in FPA-PMLA-751/DLI/2014 to the limited extent of continuation of attachment of the property of the appellant. A consequential prayer has been made by the appellant for a direction to the respondent to release the said property from attachment.

Facts:

3. Appellant is a company and is a Special Purpose Vehicle for implementation of the Vodarevu and Nizampatnam Ports and Industrial Corridor Project, also known as VANPIC Project. VANPIC Project is a Government to Government project conceptualised by virtue of an arrangement between Government of Andhra Pradesh and Government of Ras al Khaimah, one of the emirates of United Arab Emirates. For the purpose of VANPIC Project, appellant i.e., VANPIC Ports Private Limited and another Special Purpose Vehicle by the name VANPIC Projects Private Limited had acquired 13,221.69 acres of land in all, including assigned and patta land.

4. A Division Bench of the then Andhra Pradesh High Court passed an order dated 10.08.2011 in W.P.No.794 of 2011 directing investigation by Central Bureau of Investigation (CBI) into allegations of investments, in the nature of bribes, into companies allegedly controlled by Y.S.Jagan Mohan Reddy, S/o late Dr Y.S.Rajasekhara Reddy, the then Chief Minister of Andhra Pradesh.

5. Pursuant to the order dated 10.08.2011, CBI registered Rc.No.19(A)/2011-CBI-Hyderabad under Sections 120B, 409, 420 and 477A of the Indian Penal Code, 1860 (IPC) and under Section 13(2) read with Section 13(1)(c) and (d) of the Prevention of Corruption Act, 1988.

6. Allegation made by the CBI in the FIR is that Government of Andhra Pradesh under the leadership of the then Chief Minister late Dr. Y.S.Rajasekhara Reddy had granted undue favours/benefits/concessions to certain individuals and companies as a quid pro quo for investments made by the said individuals and companies in the companies promoted by Mr. Y.S.Jagan Mohan Reddy, S/o late Dr. Y.S.Rajasekhara Reddy.

7. Thereafter, Enforcement Directorate registered Enforcement Case Investigation Report (ECIR) bearing No.9/HZO/2011 dated 30.08.2011 for investigation under the provisions of the Prevention of Money Laundering Act, 2002 (briefly referred to hereinafter as ‘PMLA’). CBI has filed several charge sheets pursuant to the FIR lodged by it in respect of each instance of an alleged quid pro quo. It is stated that the present case pertains to the VANPIC Project in respect of which CBI filed a charge sheet, being charge sheet No.9 dated 13.08.2012 wherein the other Special Purpose Vehicle VANPIC Projects Private Limited has been arrayed as accused No.10 for alleged commission of offences under Section 120B read with Sections 409, 420, 467, 468, 471 and 477A IPC. It is stated that appellant, VANPIC Ports Private Limited, has not been arrayed as accused in the said charge sheet.

8. On the basis of CBI charge sheet, respondent passed provisional attachment order No.1 of 2014 dated 04.03.2014, whereby 1416.91 acres of patta land forming part of the VANPIC Project and in which appellant has an interest, was provisionally attached by the respondent. Thereafter, respondent filed original complaint No.276 of 2014 dated 27.03.2014 before the adjudicating authority.

9. Adjudicating authority issued show cause notice dated 04.04.2014 under Section 8(1) of PMLA to the appellant, in response to which appellan