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2019 (11) TMI 961 - HC - Money LaunderingMoney Laundering - proceeds of crime - attachment of properties - Section 5 of the Prevention of Money Laundering Act, 2002 - HELD THAT - Since it is ex facie apparent that there is no material indicated either in the impugned provisional attachment order or in the impugned complaint which would justify the same in respect of the petitioners or their assets, the aforesaid order and the complaint are liable to be set aside qua the petitioners. The impugned order and the impugned complaint in so far as they relate to the petitioners, are set aside. The properties of the petitioners, as mentioned in the impugned order and the impugned complaint, are also excluded from the said order/complaint - Appeal allowed.
Issues: Impugning a common order under the Prevention of Money Laundering Act, 2002 and provisional attachment of properties; Lack of reasons for attaching properties; Setting aside the order and complaint; Exclusion of properties from the order/complaint; Possibility of passing a fresh order based on new material.
In this judgment by the Delhi High Court, the petitioners challenged a common order dated 9-3-2019 under Section 5 of the Prevention of Money Laundering Act, 2002, which provisionally attached their properties. The order did not provide any reasons or material justifying the attachment of the petitioners' properties as proceeds of crime. The respondent's counsel acknowledged that the order should have been better phrased and reasons for attachment should have been disclosed. The Court observed the lack of material justifying the attachment and set aside the order and the complaint against the petitioners. The properties mentioned in the order and complaint were excluded from the attachment. However, the Court clarified that a fresh order could be passed if new material emerged to establish the assets as proceeds of crime. The pending applications were disposed of, and the order was to be provided under the signatures of the Court Master.
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