Proceeds of crime must have a direct nexus to a scheduled offence under the PMLA; mere remittance without evidence linking to crime is insufficient for attachment.

FINAL ORDER

19 .03.2026

These appeals are directed against the order dated 24.07.2015 passed by the Adjudicating Authority (AA) established under the Prevention of Money Laundering Act, 2002 (PMLA), in Original Complaint (OC) No. 438/2015 whereby the Ld. AA has confirmed the Provisional Attachment Order (PAO) No. 04/2015 dated 19.03.2015, attaching the properties of the appellants herein.

Facts in Brief

2. The relevant facts briefly are that based on a written complaint dated 12.02.2013 received from the Ministry of Defence, the Central Bureau of Investigation (CBI) registered an FIR (RC-217/2013/A0003 dated 12.03.2014) against one Mr. Christian Michel James (hereafter referred to as Christian Michel), owner of M/s Global Trade & Commerce Ltd., having registered office in London, and Consultant of M/s AgustaWestland, S.P.A., and other unknown persons, for investigation of alleged illegal dealings of M/s Finmeccanica, Italy in the matter of procurement of 12 VVIP Helicopters from M/s AgustaWestland U.K., a subsidiary of Finmeccanica, Italy. The offences under sections 120-B read with 420 of IPC and sections 7,8,9,12,13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988 (PC Act) were cited in the FIR.

3. As the FIR disclosed offences which constitute scheduled offences under the PMLA, the Enforcement Directorate (ED), on 03.07.2014, registered an Enforcement Case Information Report (ECIR) numbered as DLZO/15/2014/AD(VM), against the suspects/accused persons and undertook investigations under the PMLA.

4. During the course of investigations under the PMLA, the ED perused copies of the various documents which the Ministry of Defence, Govt. of India, had received from Consulate General of India in Italy in connection with the kickbacks paid by M/s AgustaWestland to various persons/entities, which revealed that:

 There were two post-contract Services Agreements (dated 01.03.2010 and 26.05.2010, respectively) between AgustaWestland Holdings Ltd. and Mr. Christian Michel, owner of Global Service FZE, with registered office in Dubai, Mr. Christian Michel was a long-time agent for the sale of Agusta Westland Ltd. spare parts in India with regard to advising and assisting the group company in all aspects of performing the contract in the territory;

 Consequent upon these two contracts, Mr. Christian Michel, was supposed to be paid € 42 million by M/s AgustaWestland Ltd. for the services rendered by him in acquiring the aforesaid contract for supply of 12 VVIP Helicopters from Ministry of Defence, Govt. of India, However, the term of payment was subsequently revised by reducing the amount from € 42 million to € 30 million;

 Payments were made to Mr Christian Michel against consultancy contract between AgustaWestland Ltd. and him. The first contract was for a total of € 6.05 million and second was for € 18.2 million; As per documents available, against these contracts, payments of € 6.05 million was made from May, 2010 to December, 2011, and another payment of € 5.75 million was made to M/s Global Service, FZE, Dubai. It was further revealed that payments have been made by Agusta Westland from its Account No. 52773044, to Global Services FZE, Dubai Airport Free Zone, PO Box -54629 through swift in its bank in Lloyds TSB Bank PLC Al Wasl RD opp. Dubai, UAE Account No. 60601358922302;

 Mr Christian Michel, while visiting India, used to stay in various hotels in Delhi including Claridges Hotel, New Delhi. On enquiry