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Judgment
ASHWANI KUMAR MISHRA, A.C.J. (Oral)
The petitioner had offered an alternative property with the prayer to release the property which was the subject matter of attachment by the respondents.
The matter was deferred in order to enable the respondents to examine such proposal submitted by the petitioner.
Pursuant to the previous order passed, an affidavit has now been filed by the Assistant Director, O/o Directorate of Enforcement, New Delhi, wherein, following assertions are made in paragraphs No.10, 12 and 13:-
10.That M/s CSV Techno Solutions LLP has furnished valuation reports in respect of the aforesaid two land parcels. The details of the valuation reports are as follows:-
Property Area Valuation Date of
valuation report
Land situated at village Daulatabad and Tikampur, Gurugram, Haryana 19.64
acres
Rs.578 Crore 18.08.2026 Land situated at village Manak Majra, Tehsil Mohali, District SAS Nagar, Punjab 33.12
acres
Rs.395 crores 18.08.2026 12.That upon consideration of the valuation reports and the proposal submitted by the Petitioner, it is observed that the alternative parcel of land admeasuring 33.12 acres, situated at Village Manak Majra, Tehsil Mohali, District S.A.S. Nagar, Punjab, which has been valued at 395 crore is closer in value to the amount of the Proceeds of Crime sought to be secured and attributable to M/s MGF Developments Ltd. i.e. ₹332,69,79,937/-.
13.That in view of the aforesaid facts and circumstances, the land admeasuring 33.12 acres situated at Village Manak Majra, Tehsil Mohali, District S.A.S. Nagar, Punjab, may be considered for substitution of the properties presently attached vide PAO No. 08/2024 dated 28.08.2024 in respect of M/s MGF Developments Ltd. The said property can be attached to the extent of ₹332,69,79,937/-, in lieu of the properties of M/s MGF Developments Ltd. presently under attachment vide PAO No. 08/2024 dated 28.08.2024, subject to the safeguards and conditions proposed by the Directorate in its affidavit dated 22.07.2026 filed before this Hon'ble Court and reiterated as hereunder:
Submission of No Encumbrance Certificate: The appellant shall establish and marketable title along with undisputed ownership of the assets proposed for substitution, supported by verifiable documentary evidence, to the satisfaction of the Hon'ble Court. The substituted assets must be free from all encumbrances, including mortgages, liens, pledges or any third-party claims or security interests and a certificate to this effect must be submitted by the appellant.
b. Undertaking not to alienate: The appellant must provide a notarized undertaking that the substituted property will not be sold, transferred, or otherwise alienated during the pendency of proceedings.
c. Submission of Title Documents: Original title documents of the substituted property must be deposited with the ED or the court, with a formal acknowledgment.
d. : The appellant must furnish an indemnity bond to indemnify the ED/government in case of any loss or legal deficiency arising from the substitution.
e. Consent to hand over possession of assets to the Directorate in the event of confirmation by Ld. Adjudicating Authority: Since the original attachment has not been confirmed by Ld. Adjudicating Authority, the appellant shall undertake to hand over possession of alternate assets to ED in the event of confirmation of the same by Ld. Adjudicating Authority.
f. No Prejudice to Ongoing Trial: Substitution of properties shall be without prejudice to the rights of the Directorate of Enforcement and shall not be construed as an acknowledgment of the legality of the source or legitimacy of the attached properties. It shall not affect the merits of the ongoing trial.
g. Undertaking regarding legal right of applicant to propose the subject properties for substitution: The Appellant shall declare its relation with respect to entities owning the subject properties offered for substitution along with an undertaking regarding its rights to offer such land parcels for substitution of the attached properties.
h. Submission of demarcation of land parcels proposed for substitution: The Appellant shall submit a duly demarcated map/site plan to this Directorate clearly delineating the land parcels proposed for substitution.
i.No objection for the purpose of praying for confiscation of alternate assets before Special PMLA Court: The Appears shall undertake is no objection to this Directorate seeking appropriate relief before the Hon'ble Special Court (PMLA) for confiscation of alternate assets, in accordance with the provisions of the Prevention of Money Laundering Act, 2002.”
Learned senior counsel for the petitioner submits that the petitioner has no objection to any of conditions imposed by the respondents in various sub-paras of para No.13 except Clause (e) and (i), as the same would remain subject to the petitioner’s right of filing an appeal.
Such a right of the petitioner is not disputed by the respondents.
In such view of the matter, we dispose of this writ petition with a direction that the petitioner on submitting an affidavit in terms of Para No.13 with the rider that clause (e) and (i) would remain subject to the petitioner’s right of filing an appeal, the respondents shall pass appropriate orders for substitution of the attached property. We also take note of the petitioner’s contention that since the property offered in lieu of attached property has come to the petitioner through a demerger scheme, the document in the form of appropriate orders passed by the NCLT etc. would be considered by the respondents as valid documents of title, in accordance with law. On furnishing such affidavit by the petitioner, the respondents would conclude the necessary exercise at the earliest, preferably within a period of four months from the date of submission of such affidavit.
All pending miscellaneous application(s), if any, shall also stand disposed of.