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Judgment
MP-PMLA-8476/AHD/2021 (E.H.) in FPA-PMLA-3932/AHD/2021
The above mentioned application has been filed by the appellant for early hearing of the application on the grounds mentioned therein. The same is
considered and allowed. Accordingly, the urgent application is disposed of.
FPA-PMLA-3932/AHD/2021 and MP-PMLA-8323/AHD/2021 (Stay) in FPA-PMLA-3932/AHD/2021
Fresh appeal has been filed under Section 26 of the Prevention of Money Laundering Act, 2002 against the order dated 06.01.2021 passed by
Adjudicating Authority in O.C. No. 1330/2020 alongwith stay application for staying the operation of the impugned order.
Upon hearing, issue notice. Shri Vikas Garg, learned counsel appearing for the respondent accepts the notice and seeks four weeks time to file the
reply to the appeal and reply to the stay application, which is not objected. Let the same be filed within four weeks with advance copies to be served
on the other side who may file the rejoinder, if any, to the reply to the appeal within four weeks thereafter.
MP-PMLA-8323/AHD/2021 (Stay) in FPA-PMLA-3932/AHD/2021
Alongwith the appeal, the appellant has filed application for stay seeking stay of the operation of the impugned Order dated 06.01.2021 passed by
Adjudicating Authority in O.C. No. 1330/2020. It is submitted by the learned counsel for the appellant that the Respondent (ED) has issued several
notices of possession dated 01.03.2021 of the properties mentioned in the said notices. As per the record, the notice dated 01.03.2021 addressed to the
appellant, it is directed by the Respondent (ED) to handover the properties as per the Order dated 06.01.2021 i.e. the impugned order. The aforesaid
notices have been issued to the appellant under sub-Section 4 of Section 8 of the PMLA, 2002 which are received by the appellant on dated
08.03.2021.
During the course of hearing, it is submitted by the learned counsel for the appellant that there are about 35 properties mortgaged with the consortium
of banks led by the appellant bank against grant of various credit facilities and if stay of the operation of the impugned notices is not granted then the
banks will suffer irreparable financial losses. The appellant bank has agreed to maintain status quo with respect to the properties and to abide by any
conditions to be imposed.
On the other hand, the learned counsel for the respondent submitted that he has strong objection for grant of order of status quo because proceeds of
crime has been utilized in the property and he will file appropriate reply to the stay application.
Heard both sides and peruse the materials available on record. It is an admitted fact that the consortium of banks have advanced various credit
facilities to respondent no. 5, 6 & 7 who are the principal borrower according to the pleadings and to secure the loan, the properties involved in the
present case have been mortgaged with the banks and the said properties which are mortgaged with the banks are part of the properties attached vide
PAO No. 02/2020 dated 13.07.2020 arising out of ECIR/AMZO/08/2020. The respondent (ED) without issuing any notice under Rule 8 of the
Prevention of Money Laundering (Taking Possession Of Attached Or Frozen Properties Confirmed by the Adjudicating Authorities) Rules, 2013
directly issued notice to handover possession.
After hearing both sides and considering the materials available on record, I am satisfied that the appellant bank has made out a prima facie case for
grant of order of status quo with respect to all the properties which have been mortgaged with the appellant bank and are part of the attachment
proceedings and which has been confirmed by the Adjudicating Authority vide the impugned order dated 06.01.2021. Both the parties are to maintain
status quo as on today with respect to the same properties till the next date of hearing. In the event, any clarification is required, both the parties are
given liberty to approach this Tribunal for clarification. The aforesaid order of status quo is subject to following conditions:
i. Attachment of the properties shall continue.
ii. The legal and constructive possession of the properties in question shall remain with the Enforcement Directorate;
iii. The appellant is prohibited to create any third party right or dispose of the properties in question in any manner;
iv. No encumbrance shall be created by the appellant in respect of the said properties.
v. The appellant is directed not to change the nature and character of the properties in question.
With the consent of both the parties, list the appeal and stay application on 30th July, 2021.