FPA-PMLA-1624-1630/MUM/2017

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APPELLATE TRIBUNAL FOR SAFEMA, FEMA, PMLA, NDPS & PBPT ACT

AT NEW DELHI

Date of Decision: 11.01.2019

(1) MP-PMLA-3106/CHN/2017 (Misc.)

FPA-PMLA-1624/CHN/2017

S. Ramesh Pothy

…

Appellant/Applicant

Versus

The Deputy Director

Directorate of Enforcement, Chennai

…

Respondent

(2) FPA-PMLA-1625/CHN/2017

S. Ashok Pothy

…

Appellant/Applicant

Versus

The Deputy Director

Directorate of Enforcement, Chennai

…

Respondent

(3) FPA-PMLA-1626/CHN/2017

S. Mahesh Pothy

…

Appellant/Applicant

Versus

The Deputy Director

Directorate of Enforcement, Chennai

…

Respondent

(4) FPA-PMLA-1627/CHN/2017

M/s. Pothys Pvt. Ltd.

…

Appellant/Applicant

Versus

The Deputy Director

Directorate of Enforcement, Chennai

…

Respondent

(5) FPA-PMLA-1628/CHN/2017

S. Murugesh Pothy

…

Appellant/Applicant

Versus

The Deputy Director

Directorate of Enforcement, Chennai

…

Respondent

(6) FPA-PMLA-1629/CHN/2017

Ashwanth Pothy

…

Appellant/Applicant

Versus

The Deputy Director

Directorate of Enforcement, Chennai

…

Respondent

FPA-PMLA-1624-1630/MUM/2017

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(7) FPA-PMLA-1630/CHN/2017

S. Pothiraj

…

Appellant/Applicant

Versus

The Deputy Director

Directorate of Enforcement, Chennai

…

Respondent

Advocates/Authorized Representatives who appeared

For the Appellant :

Mr. Dayan Krishnan, Senior Advocate

Mr. E. Omprakash, Senior Advocate

Ms. Madhusmita Bora, Advocate

Ms. Manvi Priya, Advocate

For the Respondent

:

Mr. Atul Tripathi, Advocate

CORAM

JUSTICE MANMOHAN SINGH

:

CHAIRMAN

JUDGEMENT

FPA-PMLA-1624-1630/CHN/2017

1. The Appeals have been filed by the above mentioned Appellants

against the Order dated 29.12.2016 passed by the Adjudicating

Authority (under PMLA), New Delhi, in the matter of Original Complaint

(O.C.) No. 635 / 2016, dated 15.09.2016, filed by the Deputy Director,

Directorate of Enforcement (PMLA), Chennai Zonal Office, under Sec. 5

(5) of Prevention of Money Laundering Act, 2002, for confirmation of the

Provisional Attachment Order (PAO) No. 19/16 dated 02.09.2016 in

ECIR/CEZO/03/2016.

2. The Appellants are five brothers along with the company, M/s

Pothys Private Ltd. (which is a close-knit company) where the only

shareholders are the brothers and their father and running an

organization in the field of textile business for more than 85 years.

FPA-PMLA-1624-1630/MUM/2017

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3. By this common order, I propose to decide all appeals. The facts

which are common in all the appeals are taken from the Appeal no. FPA-

PMLA-1624/CHN/2017 filed by Shri Ramesh Pothy.

4. The subject matter of property purchased by Appellant (jointly

being brothers measuring 12,945 sq. feet) which is attached by ED,

under PMLA, hereinafter would be referred as Pothys. The subject

property is the access to a larger extent of land in the back portion which

was purchased for constructing a commercial building.

5. The subject property was purchased by the Appellant jointly from

one Ms. Dhanalakshmi Sridhar, in and by a Sale Deed dated 29.02.2016,

for a consideration of Rs. 5,30,74,500/-. The said Ms. Dhanalakshmi

Sridhar is the daughter of one Mr. Sridhar Dhanapal, (who was facing

criminal prosecution by the Tamil Nadu Police for alleged offences and

shown as accused in the many FIRs registered under provisions of law,

including Scheduled offence and under Prevention of Money Laundering

Act, 2002). The said accused Sridhar Dhanapalan has now expired

during the pendency of appeals. The appellants had no relation with him.

They are not arrayed as accused in the FIR, nor any charge-sheet is filed.

The property attached was not purchased from accused who had not

received any money from the appellants. In the nutshell, no link and

nexus established by the respondent against the appellants between the

late Sridhar and appellants.

6. The background of purchase of the larger extent of land is that