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2018 (12) TMI 1675 - HC - Money LaunderingMoney Laundering - provisional attachment order - Section 5(1) of the Prevention of Money Laundering Act, 2002 - proceeds of crime - HELD THAT:- The PMLA is not a statute dealing merely with matters of procedure or evidence or which is declaratory in nature - the PMLA, 2002 underwent several amendments from the year 2005 onwards. Even the expression "proceeds of crime" defined in Section 2(1)(u) underwent an amendment by Act 2 of 2013 and later by Finance Act, 2016. Today, the definition includes any property derived or obtained directly or indirectly by any person as a result of criminal activity relating to a scheduled offence. Therefore, even the property in the hands of third parties can be attached and confiscated, if it is shown that they represent proceeds of crime. Hence, by its very nature, the provisions of the Act cannot have retrospective effect. If the amount of ₹ 822 crores lying in fixed deposits represented the proceeds of crime, the Ministry of Corporate Affairs could not have auctioned the same through competitive price bids. After one wing of the Government had induced a third party like the strategic investor to come to the rescue of the company, another wing of the Government cannot take an action that will vitiate the entire process - the impugned order of attachment is liable to be set aside. Petition allowed.
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