JUDGMENT :

Kamal Khata, J.

CRIMINAL APPEAL NO.337 OF 2026

1) By this Appeal under Section 11 of the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, 1999 (‘MPID Act’), the Appellant has impugned Judgment and Order dated 6^th February, 2018 (“the impugned Order”).

Brief Facts:

2) The Appellant Primezone Developers Limited (‘Primezone’) is engaged in construction of residential complexes. The Appellant commenced construction of a complex named “Prime Residential” at Sector 32, District Karnal, Haryana and “Prime City” at Sector 10, Assandh, District Karnal, Haryana in the year 2011. The investments for acquiring the properties were out of the personal incomes of the Directors namely Mr. Anil Kumar and Mr. Sohan Singh. The Appellant was in need of finances sometime in the year 2013. One Mr. Ranjeev Agarwal offered to invest. The Companies Directors on behalf of the Company and Mr. Ranjeev Agarwal executed various documents including Memorandum of Understanding/Agreement and Indemnity Bond thereby transferring the shareholding, management and control of the Appellant Company to Mr. Ranjeev Agarwal. At this time there were no proceedings under the Prevention of Money Laundering Act, 2002 and/or MPID Act against Mr. Ranjeev Agarwal. Mr. Ranjeev Agarwal was appointed Chairman and Managing Director of the Appellant in December 2012 and thereafter assumed control of the Appellant. Neither the erstwhile Directors, Mr. Anil Kumar or Mr. Sohan Singh or the plot/flat purchasers in the residential project were aware that, the investment brought in by Mr. Ranjeev Agarwal was tainted. No sooner Mr. Ranjeev Agarwal assumed the control of the Appellant, not only he but also the erstwhile Directors Mr. Anil Kumar and Mr. Sohan Singh were impleaded in the proceedings initiated by the Enforcement Directorate under Section 3 read with Section 4 of the Prevention of Money Laundering Act, 2002, before the Special PMLA Court at Sessions Court, Greater Mumbai. Subsequently, an Attachment Order came to be passed on 4^th August, 2014, whereby the two properties “Prime Residential” and “Prime City” came to be attached.

3) The Appellant was neither made a party to the proceedings nor served with any Notice of such Attachment. No sooner the erstwhile Directors came to know about the Order of Attachment, they attempted to defend and protect the rights of not only the Appellant but also the flat purchasers in the two properties. Notably, the Directors, Mr. Anil Kumar and Mr. Sohan Singh are neither named as accused in the FIR in the predicate offence in MPID Act nor are they charge-sheeted under the predicate offences registered by EOW, Unit V, Mumbai.

4) Mr. Shaikh, learned senior counsel appearing for Primezone submitted that, Mr. Ranjeev Agarwal is alleged to have laundered monies as CFO of Dunar Foods Ltd. and Director of PD Agro Processor Pvt. Ltd. to the tune of Rs. 31 crores allegedly received from National Spot Exchange Limited (“NSEL”) in the account of PD Agro Processor Pvt. Ltd. and has invested the amounts in the Appellant Company. Mr. Ranjeev Agarwal has vide his statement to the Enforcement Directorate absolved the Directors as well as the Appellant Company of any role in the tainted transaction concerning repayment of monies received from the Trading Cum Clearing Members of NSEL. He submitted that, the Attachment Order dated 4^th August, 2014, passed by the Special PMLA Court in case No.4 of 2015 has been challenged before the PMLA, Appellate Tribunal at New Delhi which is pending. He submitted that, the Appellate Tribunal has issued Notice. That, Mr. Ranjeev Agarwal has absconded and thereby the Appellant Company has been suffering immensely. The erstwhile Directors have removed Mr. Ranjeev Agarwal from the Appellant Company vide a requisite Board Resolution.

4.1) Mr. Shaikh submitted that, by the impugned Order dated 6^th February, 2018, the attachment of the two properties have been made absolute and the properties ves