Provisional attachment orders can be issued against those in possession of proceeds of crime, regardless of whether they are named as accused in the underlying criminal activity.

ORDER

21.01.2026

By batch of these appeals under Section 26 of the Prevention of Money Laundering Act, 2002 (in short `the Act of 2002’), a challenge has been made to the order dated 03.09.2021 passed by the Adjudicating Authority confirming the Provisional Attachment Order dated 08.03.2021. The provisional attachment order so as its confirmation was passed against many defendants finding their involvement in money laundering, however we would be dealing with the properties belonging to the appellants before us. Before we refer to the arguments of the respective parties, it would be relevant to give brief facts of the case:

Brief facts of the case:

2. It is a case where FIR No. 85(26) and FIR No. 86(27) dated 27.04.2010 were registered for the offences under Section 302, 120-B IPC and Section 25(1)(b) of the Arms At, 1959 at Paradeep Police Station. It was alleged that the managing partner of the appellant company M/s Mahimananda Mishra hatched a conspiracy to fail the execution of work allotted to one M/s Swastik Stevedores Pvt. Ltd. (M/s SSPL) for unloading of limestone imported by M/s SAIL and hired people to cause threat to the life of the staff and equipment by burning off their two pay loader machines. As a result of the burning of pay loaders, M/s SSPL could not complete the unloading of limestone imported by M/s SAIL and M/s Mahimananda Mishra provided the service instead received Rs. 23,21,321/- as per the bill raised due to the alleged criminal activities.

3. Mr. Mahimananda Mishra was the main accused and the managing director of M/s. Orissa Stevedores Ltd. until his resignation in 2017 and the managing partner of M/s. Mahimananda Mishra. The investigation revealed various cases registered against the main accused that includes the FIR No. 85(26) and FIR No. 86(27) and the chargesheets filed in the year 2017. The chargesheets No. 19 dated 12.03.2017 and 233 dated 31.10.2017 were filed against the main accused. It was alleged that in the year 2015, when M/s Seaways Shipping and Logistics ltd. (‘M/s Seaways’) got the cargo handling work of M/s Jindal Steel and Power Ltd. (M/s JSPL), a dispute arose between the appellant M/s. Orissa Stevedores Ltd. (‘M/s OSL’) and M/s Seaways. As a result, Mr. Mahimananda Mishra, managing director of M/s. OSL hatched a conspiracy to kill the manager of M/s Seaways. Rs. 12 lakhs were given to one Rakesh Choubey and remaining Rs. 38 lakhs were to be given after completion of the work. He took huge amount of cash from the appellant M/s OSL.

4. The investigation therein revealed that Chargesheet No. 85 dated 23.09.2007 in FIR No. 38/06 dated 20.05.2006 was filed at Balimi Police Station alleging that M/s Bhushan Steel Pvt. Ltd., Narendrapur, Meramundali, Dhenkanal assigned the work to Mr. Mahimnanda Mishra of construction of a boundary wall near village Sarapa however, despite repeated protests by the villagers, the work was continued. A conspiracy was hatched by the main accused to injure and kill the villagers who were demanding the compensation of land losers and peripheral development. A letter was also submitted by M/s Bhushan Steel Pvt. Ltd. stating that payments aggregating to Rs. 94,50,241/- along with TDS deduction of Rs. 2,12,063/- was made to M/s OSL. Thus, the appellant company M/s OSL received a commission of Rs. 94,50,241/- because of the commission of the alleged criminal activities by it.

5. On the basis of the facts above, an ECIR was recorded on 05.11.2018.

6. The statements were recorded under section 50 (2) of the Act of 2002 wherein, Mr. Mahimananda Mishra submitted that neither he as an individual nor M/s OSL, as a company have any relationship with the construction of boundary wall. The payments were made for the services provided at the port however, no document was produced to substantiate the same. As regards the murder of manager of M/s Seaways and payments made to one Mr. Rakesh Choubey, he stated that he knew Mr. Rakesh Choubey who met him along with one Mr. Anil Singh