FINAL ORDER

29.10.2025

By batch of three appeals filed 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 25.05.2022 passed by the Adjudicating Authority confirming the Provisional Attachment Order dated 11.08.2021.

Brief facts of the case:

2. It is a case where the movable properties worth of Rs.6,88,70,759/- have been provisionally attached under Section 5(1) of the Act of 2002. The details of the properties in the hands of many persons have been given in the impugned order. However, we would restrict these appeals in regard to the properties of the appellants leaving other properties. The properties were including seizure of the cash of Rs.11 Lakhs by the Assam Rifles from the possession of appellant No. 3 Zingshongam Muinao, Rs.15 Lakhs from the possession of Shri Vimal Kumar Jain, who is not appellant before us, Rs.1,32,72,800/- seized by the Assam Rifles from the house premise of Rayilung Nsarangbe and Mrs. Ruth Chawang, appellants. It is apart from the funds in the bank accounts, mutual funds and the insurance funds in the name of the appellants.

3. It is a case where Assam Rifles registered an FIR on 05.07.2020 with Dimapur Police Station, District Dimapur, Nagaland for the offence under Sections 120-B, 384,406,420,465, 468,471,506,34 IPC,1860. It was even for the offence under Sections 25(1A), (1B) (a) of Arms Act and for the offence under Explosives Substances Act, UA (P), Indian Passport Act and Indian Wireless Telegraphy Act, 1933. The charge sheet was thereafter filed by the National Investigation Agency (NIA), Guwahati finding commission of offence under the IPC and other offences under different statutes.

4. During the course of investigation by NIA, it was revealed that terrorist gang of NSCN (IM) was carrying on well-organized extortion racket in Manipur and Nagaland resulting for diversion of Govt. funds. It was in pursuance to the conspiracy for terrorist acts and through the terrorist gang, they got involved in the construction companies undertaking the road construction project in Manipur and demanded huge sum as illegal tax (extortion). It is with the threatening to the company officials and workers. Their work was to stop and to resume only after satisfaction of the demand of the terrorist gang. The amount was settled in two instalments of Rs.60 Lakhs in cash and in that regard, the meeting used to be organized in a hotel where in the first trench, Rs.34 lakhs were delivered to Rayilung Nsarangbe. Remaining amount of Rs.26 lakhs of instalment was to be paid to one Armstrong Pame who provided bank account details. The investigation further revealed involvement of others in reference to different accounts which includes demand and delivery of cash amount of Rs.15 Lakhs in Dimapur using business channel and subsequently delivery of a sum of Rs.11 Lakhs cash on 04.07.2020 at the residence of Dr. Rabi Pame and prior to that delivery of Rs.15 Lakhs cash from the shop of Mr. Vimal Kumar Jain. The house of the appellants Rayilung Nsarangbe and Ruth Chawang was searched and a sum of Rs.1,32,72,800/- was found and seized along with the illegal arms and ammunitions, explosives, incriminating documents and a fake passport. The appellant Rayilung Nsarangbe was arrested and appellant Ruth Chawang dishonestly withdrew Rs.4 crores cash from her bank account in Federal Bank and caused it to be delivered to the members of terrorist gang of NSCN (IM). In the investigation, it was also revealed that the appellants Rayilung Nsarangbe and Ruth Chawang were having multiple bank accounts in different banks and were using those bank accounts and managing the proceeds obtained for the terrorist activities. The documents seized from the premises of appellants Rayilung Nsarangbe and Ruth Chawang revealed their deep involvement in diversion of Govt. funds and collection of illegal tax by way of extortion. The respondents accordingly caused Provisional