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2019 (6) TMI 1228 - ATPMLAAttachment of property under PMLA - scheduled offences - main allegation against the appellant is that alienation of the land to the extent of 231.09 acres was done in favour of the appellant and the M/s Pioneer Infrastructure Holding Ltd, in lieu of the aforesaid alienation, made quid pro quo investment ₹ 53,00,00,000/- in M/s Caramel Asia Holding Pvt. Ltd. and M/s Jagati Publication Pvt. Ltd., which are the companies of Sh. Y.S. Jagan Mohan Reddy - HELD THAT:- In view of the amendment inserted by Act of 13/2018, which is applicable w.e.f. 19.4.2018 where in the 2nd proviso, it is allowed to party to claim the restoration of the said property during the trial by moving the said application, if so required, if the appellant has acted in good faith, would be able to satisfy the Special Court that the appellant is suffering irreparable loss if the claim of the appellant is not allowed. Being an independent Statute as claim by the respondent, an independent and impartial evidence is to be traced against the person concerned who is stated to be involved in money laundering. Merely on the basis of allegations the respondent with evidence can not attach any property by passing provisional attachment order unless there are reason to believe that the impugned property is definitely involved in money laundering within the meaning of Section 2(1)(u) read with Section 3 of the Act - Reason to believe is not a formality but it should akin to prima facie findings that the person concerned is positively involved in money laundering. The provisional attachment order can only be passed if such exercise is done within the four corners of settled law. The meaning of proceeds of crime is any property derived or obtained directly or indirectly as a result of criminal activities relating to a schedule offense. The provisions of Section 5 and 8 of PMLA are not exactly similar but principles and intend to incorporate the said provision to some are the guiding factors. The manner in which the provisional attachment order was passed and confirmation thereof in the impugned order, the same cannot continue by attaching commercial properties where the future and career of hundred of employees are involved with regard to commercial properties, the value of the property can be secured by depositing the same with the respondent till the final order is passed by the Special Court. Appeal allowed in part.
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