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2026 Supreme(Online)(ATFP) 127
APPELLATE TRIBUNAL FOR FORFEITED PROPERTY
Smt. Sumita Majee Smt. Rupali Majee Shri Joy Majee Shri Ashok Pattanayak Shri Pradyut Pattanayak Shri Bidyut Pattanayak Smt. Bandana Pattanayak Shri Anup Majee Shri Arup Majee M/s Ispat Damodar Private Limited & Anr M/s Sonic Thermal Pvt. Ltd. – Appellant
Versus
The Deputy Director Directorate of Enforcement Delhi – Respondent
FPA-PMLA-5858/DLI/2023
The Court upheld the Provisional Attachment Order under the Prevention of Money Laundering Act, confirming sufficient evidence of the appellants' involvement in crime-related proceeds despite procedural objections.
Headnote:(A) Prevention of Money Laundering Act, 2002 - Section 26 - Provisional Attachment Order (PAO) - Appeals filed by appellants challenging the confirmation of PAO by the Adjudicating Authority in cases of illegal coal mining and proceeds of crime - The appellants argued lack of evidence connecting them to the crime and improper procedure as per Regulation 3 of 2013 - However, the tribunal found sufficient material indicating their involvement in the proceeds of crime and stated that witnesses' statements under the Act itself were substantial. (Paras 2-34)
(B) Evidence - Admissibility - The tribunal held that statements made under the Income Tax Act could not be relied upon in proceedings under the Act of 2002; however, sufficient evidence was provided to showcase the connection of the appellants to the alleged crime and proceeds. (Paras 8, 17, and 33)
(C) Corporate Veil - The tribunal addressed arguments regarding lifting the corporate veil and stated that improper actions by individuals could implicate associated entities, attesting to the legal intertwining of corporate and individual accountability. (Paras 10, 42)
(D) Regulation 3 of 2013 - The tribunal asserted that the rights of the appellants under Regulation 3 were not violated since translation of documents was provided; therefore, the procedure followed was valid. (Paras 35-37)
Findings of Court:
The appeals were found to lack merit as the tribunal found substantial linkage between the appellants and proceeds from criminal activities.
Result: Appeals dismissed.
| Table of Content |
|---|
| 1. facts related to the fir and allegations of illegal mining. (Para 2 , 3 , 4 , 5) |
| 2. arguments presented by the appellants regarding procedural defects. (Para 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14) |
| 3. court's analysis of the evidence and legal standards applied. (Para 15 , 16 , 17 , 18 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43) |
| 4. dismissal of appeals and confirmation of provisional attachment order. (Para 44) |
ORDER
15.01.2026
Set of appeals have been filed under Section 26 of the Prevention of Money Laundering Act, 2002 (in short “the Act of 2002”) to challenge the order dated 18.08.2022 passed by the Adjudicating Authority confirming the Provisional Attachment Order (‘PAO’).
Brief facts of the case:
2. An FIR was registered by the CBI, Kolkata against Shri Amit Kumar Dhar, the then GM, Kunustoria Area, ECL (Easten Coalfield Ltd.), Shri Jayesh Chandra Rai, General Manager, ECL, Kajora Area, Shri Tanmay Das, Chief of Security, ECL, Asansol and many other officials of ECL along with Shri Anup Majee @ Lala and unknown officials of ECL, CISF, Railway and other department for the commission of cognizable offence under Section 120B, 409 of the Indian Penal Codem 1860 (IPC) and Section 13(2) r/w section 13(1)(a) of the Prevention of Corruption Act, 1988. The allegation was that the accused, Shri Anup Majee had collected/generated huge amount of proceeds of crime from the schedule offence involving illegal coal mining / trading operations with the help of his associates.
3. The FIR was registered on receipt of reliable information about illegal excavation and theft of coal involving criminal elements from the leasehold area of ECL in active connivance of the officials of ECL, CISF, Indian Railways and other connected departments. During the joint inspection conducted by the Vigilance Department and Task Force of ECL on several leasehold areas of ECL from May, 2020 and onwards, evidence of extensive illegal mining in the leasehold area of ECL and its transportation was found. The several machines were used for excavation of coal out of illegal mining and accordingly large number of vehicles and equipment were seized. It is apart from the vehicles for transportation of illegal excavated coal. Installation of illegal weigh bridges was also found which confirmed illegal coal mining and transportation from ECL areas in organized manner at a very large scale. It was also found that illegal mining was going on at the leasehold area of ECL behind Topsi Village under Kunustoria Area and at Lachhipur Village under Kajora Area.
4. During the departmental raids on 07.08.2020 at Railway Siding of Pandaveswar area, 9.050 MT of stolen coal was recovered and seized. Seizure of stolen coal was made from several other Railway locations as well. The evidence collected therein revealed illegal activity being run at the Railway sidings by the criminals with active connivance of unknown Railway officials. The involvement of officials of ECL, CISF, Railway apart from other accused involved therein was found and accordingly the respondent caused provisional attachment of the properties involved in the money-laundering to protect it till the conclusion of the trial.
5. The PAO has been confirmed by the Adjudicating Authority. Aggrieved by the order of the Adjudicating Authority, the present appeals have been preferred by the appellants.
Arguments of the Ld. Counsel for the appellants.
6. Ld. Counsel for the appellants argued the appeals in two separate batch of appeals and accordingly we would record the arguments of the Ld. Counsel for the appellants for two separate set of cases out of which first batch of appeals would address the issues raised by the individuals while other set of appeals would address the issues raised by the appellant Companies.
First batch of appeals
7. Ld. Counsel for the appellants submitted that without any evidence for involvement of the appellants for commission of crime, their properties have been attached.
