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2014 (10) TMI 436 - HC - Money LaunderingAttachment of property - Prevention of Money Laundering Act, 2002 - Held that:- One is hard pressed to imagine how a trial for an offence of money laundering can continue where the fundamental basis – the commission of a schedule offence – in this case offence under Section 307 IPC – has been found to be disproved - attachment of a property is liable to be vacated if the existence of a scheduled offence is negated. Clearly, attachment of proceeds of crime cannot continue if the alleged scheduled offence is not established after trial. Given the scheme of the PMLA, attachment of property (proceeds of crime) must be lifted if it is found that the scheduled offence, on the basis of which attachment was effected, does not exist. In absence of a scheduled offence, the question of existence of any proceeds thereof, do not arise. The proceedings before the Appellate Tribunal emanate from the order of an Adjudicating Authority passed on 04.02.2011. It is, thus apparent that the Appellate Tribunal would consider the merits of that order. In the present case, an intervening event has occurred inasmuch as the accused of the schedule offence has been acquitted. In the circumstances, it prima facie appears that the attachment order ought to be vacated. The petitioner has already filed a representation before the respondent on 23.04.2013, which is not disposed of as yet. - Decided in favour of assessee.
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