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2025 Supreme(Online)(ATFP) 349
APPELLATE TRIBUNAL FOR FORFEITED PROPERTY
Rajesh Malhotra, Member
Tamilnad Mercantile Bank Ltd. – Appellant
Versus
The Deputy Director Directorate of Enforcement, Chennai – Respondent
FPA-PMLA-1771/CHN/2017
For the Appellants/Petitioners: Mr. Pramod Kumar
For the Respondents: Ms. Anubha Bhardwaj
PMLA prevails over SARFAESI provisions, allowing attachment of properties acquired before the alleged offence.
Headnote:The appeal filed under Section 26 of the Prevention of Money Laundering Act, 2002, concerns the confirmation of properties' attachment by the ED. The appellant bank contended that the properties are secured by mortgage and were acquired before the alleged offence. The court emphasized the precedence of PMLA as a special Act and allowed the appellant bank to claim its rights post-trial. The appeal was disposed of with the liberty retained for both parties to assert their rights in criminal proceedings.
| Table of Content |
|---|
| 1. details of property attachment and fir registration. (Para 2) |
| 2. arguments presented by the appellant bank. (Para 3) |
| 3. response by the respondent ed. (Para 4) |
| 4. court's decision and implications for appeal. (Para 5) |
| 5. final order on the appeal. (Para 6) |
BEFORE RAJESH MALHOTRA, MEMBER; SINGLE BENCH: APPELLATE TRIBUNAL UNDER SAFEMA; AT NEW DELHI.
FPA-PMLA-1771/CHN/2017 Tamilnad Mercantile Bank Ltd. … Appellant Versus The Deputy Director Directorate of Enforcement, Chennai … Respondent Advocates/Authorized Representatives who Argued For the Appellant : Mr. Pramod Kumar, Advocate, For the Respondent : Ms. Anubha Bhardwaj, Advocate,
FINAL ORDER
29.05.2025 Present appeal u/s 26 of Prevention of Money Laundering Act, 2002 (PMLA) is filed by the appellant bank against the order dated 02.02.2017 passed by the Adjudicating Authority in Original Complaint No. 630/2016, whereby the properties attached by ED vide Provisional Attachment Order No.16/2016 (PAO) dated 17.08.2016 were confirmed.
The properties mortgaged with the appellant bank are as under:
A. In Coimbatore Registration District, Avanashi Sub- Registration District, Avanashi Taluk, Avanashi Panchayat Union, Velayuthampalayam village Patta No.557 Dry Lands in S.F.No.214/1 dry of 3.48 acres assessed at Rs.4.74 in which dry of 0.46 acres assessed at Re.1.00 and dry lands in 5.F.No.214/2 dry of 3.84 acres assessed at Rs.5.26 in which dry of 0.54 acres assessed at Re.1.00 and the total extent conveyed in this deed in both survey numbers together 1.00 acre assessed at Rs.2.00 together with 20 palm trees and 5 mango trees situated within the limits of Velayuthampalayam Panchayat. Boundaries of the property:
North by: Panchayat Road in S.F.No.213; West by: Parts of Survey Nos.214/1 & 214/2; South by: No.53, Puduppalayam village lands; East by: Elango lands in No.58. Puduppalayam S.F.Nos.214/1 & 214/2 214/2.
Market Value estimated at Rs.0.75 crores.
B. All the piece and and parcel of land with residential building thereon in Coimbatore Registration District, Singanallur Sub-Registration Office, Coimbatore District, Coimbatore Taluk, in Coimbatore Town in Uppilipalayam village within Coimbatore Municipal Corporation limits Door No.A-28, May Flower Sakthi Garden, Nanjundapuram Road, Coimbatore the portion of land in T.S.No.645, 646, 647, 648, 649, 650, 651, 652, 653, 654 and 669 part measuring
2973.60 Sq.ft.”
2. As per the facts of the case, CBI, BS&FC Bangalore registered FIR No. RC-6(E)/2010 dated 07.10.2010. After investigation CBI filed charge sheet on 28.11.2011, before Ld. Special Judge, CBI Court, Coimbatore, against the accused persons namely S/Shri S. Arivarasu, G. Srinivasan, P. Venkatachalapathy, R. Selvakumar, R. Manoharan, R. Velumurugan and M/s Sri Pamba Spinning Mill Private Limited, represented by its Director for the commission of offences under Section 120-B IPC read with Section 420, 467, 468, 471 of IPC and also under Section 7, 12 & 13 (2) read with 13 (1)(a)&(d) of Prevention of Corruption Act, 1988 and substantive offences thereunder.
Another FIR No. RC-7(E)/2010 dated 07.10.2010 was also registered by CBI, BS&FC, Bangalore against the accused persons namely S/Shri S. Arivarasu, R. Selvakumar, G. Srinivasan, P. Venkatachalapathy, R. Manoharan, and M/s Paranthaman Spinning & Weaving Mills Private Limited, represented by its Director for the commission of offences under Section 120-B IPC read with Section 420, 467, 468, 471 of IPC and also under Section 7, 12 & 13 (2) read with 13 (1)(a)&(d) of Prevention of Corruption Act, 1988 and substantive offences thereunder.
CBI, BS&FC, Bangalore also registered the FIR No. RC-9(E)/2010 dated 07.10.2010 against the accused persons namely S/Shri S. Arivarasu, R. Manoharan, (Proprietor of BTM), R. Selvakumar, G. Srinivasan, K. MaruthaMutthu, V. InduNesan, K. Vignesh, A. Senthil Kumar and M. Ramakrishnan for the commission of offences under Section 120-B IPC read with Section 420, 467, 468, 471 of IPC and also under Section
