FPA-PMLA-2707/SURAT/2018

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

AT NEW DELHI

Date of Decision: 17.01.2019

FPA-PMLA-2707/SURAT/2018

The Branch Manager, Canara Bank

…

Appellant

Versus

The Deputy Director,

Directorate of Enforcement,Surat

…

Respondent

Advocates/Authorized Representatives who appeared

For the appellant

:

Shri Rajesh Kumar Gautam, Advocate

For the respondent

:

Mohd. Faraz, Advocate

CORAM

JUSTICE MANMOHAN SINGH

:

CHAIRMAN

JUDGEMENT

FPA-PMLA-2707/SURAT/2018

1. The appellant has challenged the order dated 01.10.2018 passed by

Adjudicating Authority (received by Canara Bank on 15.10.2018) in Original

Complaint (OC) No. 974/2018 in PAO No. 01/2018 dated 13.04.2018

[Case File No. ECIR/STSZO /04/2017], whereby the provisional order of

attachment of the properties made under sub-section (1) of Section 5 of

Prevention of Money Laundering Act, 2002 was confirmed.

FPA-PMLA-2707/SURAT/2018

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2. As per the record of the bank upto August, 2013 the Respondent No.3

and 4 being the Directors of the Respondent No.2 Company had approached

the Appellant Bank for availing Consortium Finance of Rs 2082.53/- Crores.

3. By their last renewal of limits on 03.01.2014 the Appellant Bank

pursuant to the request made by the Respondent No. 2 Company, renewed

Consortium Finance of Rs 2082.53/- Cr against the Hypothecation/mortgage

of the property in issue in the present appeal.

4. On 22.08.2013 the Respondent No.2 Company created mortgage of the

immovable property vide Declaration of Mortgage in favour of the Appellant

Bank. i.e the All piece and parcel of Land being at block No.1,4,11-19 at village

Karanj, Taluka Mandvi, District Surat, Gujarat in favour of the Consortium led

by the Appellant Bank.

5. On 09.01.2014 the Respondent No.2 Company executed a Hypothecation

Agreement in favour of the Consortium led by the Appellant Bank, wherein, the

Moveable properties (Including the Plant and Machinery) of the Respondent

No.2 Company stood hypothecated in favour of the Consortium led by the

Appellant Bank.

6. On 31.05.2014 the Account of the Respondent No.2 was declared as

NPA by the Appellant Bank as per the guidelines issued by the RBI

7. On 26.06.2015 the Appellant Bank filed O.A. bearing No. 417/2015

before the DRT Ahmadabad for the Recovery of a sum of Rs 1937,61,10,029/-

as on 31.05.2015.

8. On 21.08.2015,the Consortium Banks (13 in number) through the

Appellant Bank have already taken possession of the properties in issue by a

FPA-PMLA-2707/SURAT/2018

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Possession Notice dated 21.08.2015 under the provisions of SARFAESI Act,

2002.

9. That on 16.08.2017 the Respondent No.1 registered the ECIR bearing No.

ECIR/STSZO/04/2017 against the Respondent No.2 and others.

10. That on 13.04.2018 the Respondent No.1, based on the ECIR registered

on 16.08.2017 against the Respondent No. 2 and others had passed the

Provisional Attachment order (PAO) bearing No. 01/2018 dated 13.04.2018 qua

the property in issue after the Recovery proceedings initiated by the Appellant

Bank.

11. That on 09.05.2018 the Respondent No.1 filed OC Bearing No. 974/2018

before the Adjudicating Authority (PMLA), inter alia, seeking the confirmation of

the PAO bearing No. 01/2018 dated 13.04.2018.

12. On 17.05.2018 the Adjudicating Authority (PMLA), Pursuant to the

Original Complaint no.974/2018 filed by the Respondent No.1 was pleased to

issue a show cause notice to the Appellant Bank.

13. On 27.07.2018 the Appellant Bank filed a detailed reply to theOriginal

Complaint no.974/2018 filed by the Respondent No.1 before the Ld.

Adjudicating Authority (PMLA).

14.

That on 27.08.2018the Respondent No.1 filed the rejoinder to the Reply

filed by the Appellant Bank before the Ld. Adjudicating Authority (PMLA).

15. On 01.10.2018 the provisional attachment order (PAO) bearing

no.0