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2016 (1) TMI 1343 - AT - Money LaunderingProvisional attachment order - offence under PMLA - Held that:- It is not in dispute that the respondent filed rejoinder dated 4-8-2014 before the Adjudicating Authority after close of hearing and their right to file rejoinder on 22-7-2014 which rejoinder has been considered by the Adjudicating Authority while returning finding u/s 8(2) of PMLA against the appellants to confirm the provisional attachment of appellants’ properties vide impugned order dated 29-8-2014. Under these circumstances, the allegation of appellants that as the rejoinder alleged substantial averments on facts as well as on law which have been considered by the Adjudicating Authority for returning findings as per provisions of Section 8(2) of PMLA without affording any opportunity of hearing to the appellants to answer/respond the averments made on behalf of the respondent vide rejoinder dated 4-8-2014, therefore, the impugned order dated 29-8-2014 is vitiated and has become bad in law, has considerable force. In our opinion the Adjudicating Authority has not proceeded fairly by not affording any opportunity to the appellants on receipt of rejoinder dated 4-8-2014 making factual averments as well as raising legal pleas some of which appears to have been raised only in the rejoinder. It would be a futile exercise to speculate what could have been the consequences or change in the final outcome if the appellants were granted an opportunity to respond to the rejoinder. There is an infraction of principles of natural justice on the part of Adjudicating Authority as argued on behalf of the appellants. Consequently, the impugned order dated 29-8-2014 to the extent of confirming provisional attachment of the appellants’ properties is set aside and remanded to the Adjudicating Authority for re-adjudication within 180 days from the date of this order. The Adjudicating Authority shall give a fair opportunity to the parties to present their case. The appellants shall file their reply to the rejoinder dated 4-8-2014 within 30 days from the date of this order or on a date as may be fixed by the Adjudicating Authority and shall also supply a copy of same to the respondent. This Tribunal has not expressed any opinion on merits of the case. During the pendency of proceedings before the Adjudicating Authority, the Provisional Attachment Order shall continue and all the parties shall maintain status quo in respect of the attached properties.
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