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2022 (6) TMI 1389 - HC - Money LaunderingMoney Laundering - Provisional attachment order (against four immovable properties and five bank accounts of the petitioners) - proceeds of crime - reasons to believe - siphoning off of funds - HELD THAT:- The general conclusion in respect of the immovable properties is that proceeds of crime have been siphoned off from the I-Core Group to the 1st petitioner and DPMPL for over a decade and has been concealed/changed in form. The order records that "now it is barely possible to track down the trail of the whole POC from the complex web of account transactions" - There are no independent factual findings for the five bank accounts which have been provisionally attached. The narration of facts and the conclusions arrived at with regard to the ‘proceeds of crime’ acquired by the petitioners show a singular absence of a causal connection between the two. The findings under each head of immovable property (except Flat Nos. 9F and 9G where there is no finding) is that the petitioners acquired ‘proceeds of crime’ from their association with I-Core Group. The order also records that the ‘proceeds of crime’ have been identified and are therefore liable to be attached. The finding is also that the petitioners have acquired property by indirect payment out of the ‘proceeds of crime’. The impugned order in the present case falls short on several counts. Besides the lack of a factual nexus between the acquisition of the immovable property and the identification of the property as ‘proceeds of crime’, there is also no reference to the property being derived from any direct or indirect criminal activity relating to a scheduled offence. There is also a stark absence of the basis of any apprehension of risk that the property may be wasted or dealt with in a manner so as to render the “proceedings” under 5(1)(b) infructuous. The general conclusion in paragraph 11 of the impugned order is that the petitioners will frustrate further proceedings. The factual narration containing random statements of facts cannot satisfy the requirement of reasons to believe being recorded in writing - Having regard to all the facets of the impugned order of attachment which have been challenged in this writ petition, this Court is accordingly of the considered view that the impugned order of attachment fails to fulfill the requirements of the relevant provision of the PMLA and should hence be quashed. Application disposed off.
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