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2022 (8) TMI 612 - TELANGANA HIGH COURTMoney Laundering - Provisional attachment of property - proceeds of crime - Sections 5 and 8 of the PMLA, 2002 - HELD THAT:- The powers of provisional attachment of the property is detailed under Section 5 of the Act. The said Act empowers the Director or Deputy Director authorized to provisionally attach a property for (180) days if he has reason to believe that it is pertaining to proceeds of crime. The Adjudicating Authority (PMLA) was a quasijudicial authority established under the PMLA, 2002. The proceedings before the adjudicating authority were time-bound as per the provisions of PMLA, 2002. For passing order under Section 8(3) in connection with provisional attachment order, the Act prescribes a statutory time limit that the same had to be passed within (180) days from the date of provisional attachment order. The Adjudicating Authority in the impugned show-cause notice provided a detailed note regarding the time limitation of the proceedings emphasising the necessity for adherence to the due dates prescribed - The petitioners were served with show-cause notice under Section 8(1) of the PMLA Act on 22.04.2022 and the same was received by them on 09.05.2022. The original complaint and the documents relied upon were served on them on 10.05.2022. Admittedly, the original complaint and its annexures were voluminous running into almost 5000 pages and it needs time to peruse the voluminous documents served upon them and to comprehend them and to ascertain the facts in accordance with the internal records and collate the supporting documents for preparation of reply. Any inadequate reply would affect the defence of petitioners. Therefore, not granting extension of time period to reply to the impugned show-cause notice would be depriving them of their right to put forth defense against the provisional attachment order and to present evidence in support of their defense. The same was in violation of principles of natural justice violating the opportunity of providing a fair hearing. It is considered fit to direct the 1st respondent to grant extension of time for one (01) month to the petitioners to prepare a proper response to the impugned show-cause notice. For the purpose of computing the period of (180) days, the period during which the proceedings were extended shall be excluded as per the third proviso to Section 5 of the PMLA Act inserted by way of Amendment Act No.13 of 2018 w.e.f. 19.04.2018 - Petition disposed off.
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