The attachment of properties under the PMLA can occur irrespective of when the properties were acquired, as long as they are deemed as proceeds of crime related to scheduled offences.

ORDER

07.03.2025

The present appeal has been filed under section 26 of the PMLA, 2002 against the order of the Ld. Adjudicating Authority (“AA”) dated 16.05.2016, confirming the Provisional Attachment Order (“PAO”) dated 27.03.2015 in Original Complaint (“OC”) No. 453/2015, whereby the following properties of the Appellant herein were attached:

(i) Balance of Rs. 12,04,611.39 lying in Account No. 304000645759 in Surat People‟s Cooperative Bank Ltd., Pandesara Branch, Surat.

(ii) Immovable property at Block No. 9,87,88,89,90,94,95,96,97,98,100/A/100/8 and 102 of Village Gabheni, Taluka Choryasi, Dist Surat, total admeasuring 2,05,249 sq.mtrs, together to with all building and structures thereon and plant and machinery attached to earth or permanently fastened to anything attached to earth in the name of Gujarat Enviro Protection and Infrastructure Ltd. to the extent of Rs. 2,70,58,889/profit earned during 2010-11 and 2011-12.

Facts in Brief

2. The relevant facts briefly are that information was received by the respondent directorate (ED) that a Criminal Complaint No. 4241/2012 dated 4/2/2012 was lodged by the Regional Officer, Gujarat Pollution Control Board (GPCB) before the Chief Judicial Magistrate, Chief Court, Surat alleging that M/s Gujarat Enviro Protection and Infrastructure Ltd. (M/s. GEPIL), Village Gabheni, Taluka Chorayasi, Near GIDC Sachin, Surat had violated the Environment Protection Act, 1986 .

3. The villagers of Budhiya Village had, on 22.10.2011, complained to M/s. GPCB that there was a sudden death of seven buffaloes under mysterious circumstances near Unn Creek due to hazardous waste illegally cleared/disposed of into the creek. Following the complaint, the GPCB, during the period 17/11/2011 to 04/12/2011, conducted an investigation which revealed that M/s GEPIL had violated the conditions under which they were granted permission to work as co-processors to clear hazardous waste. They intentionally and illegally joined five pipelines to the GIDC main gutter line used for clearing the hazardous waste. These additional 5 pipelines were illegally joined at various stages to the GIDC gutter line which was being used for waste water discharge line. The samples of the waste lying inside the illegal pipelines has been drawn by M/s. GPCB and so also the samples of the waste lying inside of M/s. GEPIL was drawn for laboratory testing which revealed that M/s. GEPIL has violated the CPCB guidelines, directions of GPCB, the consent order dt. 11/10/2006 and conditions laid down thereunder. It also came to light that M/s. GEPIL has not stored, disposed and treated the hazardous waste in a scientific manner for which they were granted permission to co-process the hazardous waste collected from industrial houses. Illegal construction of pipelines for such disposal and joining to the main GIDC pipeline and without following the said measures, releasing the hazardous waste in Unn and Gabheni Creeks was in contravention of Section 25(1)(A) Water (Prevention and Control of Pollution) Act, 1974.

4. M/s. GEPIL was permitted to work as co-processor vide order No. GPCB/CCA-SRT-618(9)/73328 dt. 18/02/2011 to collect the hazardous waste and had thus violated the conditions 2, 3, 5 and 13 laid down under the said order. M/s. GEPIL and its directors had contravened the conditions laid down by the GPCB, CPCB guidelines in as much as they failed to collect, store, treat and dispose of hazard