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2017 (9) TMI 1446 - AT - Money LaunderingOffence under PMLA Act - provisional attachment orders - legal owner of property - vehicle was hypothecated to the Appellant Bank and that the Appellant/SBI had prior charge over the subject matter/said vehicle and the Ld. Adjudicating Authority confirmed the provisional attachment order - superiority of SARFAESI Act - overriding effect of the two Acts i.e. SARFAESI Act, 2002 and the PMLA Act, 2002 - Held that:- Admittedly, neither the bank is the accused in any criminal proceedings nor there is any allegations against them that they are involved in the commission of alleged crime or generating “proceeds of crime”. The amount of loan sanctioned are public money and they are entitled to get back their money by selling the mortgaged property as a first charge. The provisions of the amended SARFAESI Act prevail over the provision of the PML Act because the Amended SARFAESI Act is the subsequent legislation to the PML Act as held by the Hon’ble Supreme Court in the case of Solidaire India Ltd. Vs. Fairgrowth Financial Services Ltd. & Ors. (2001 (2) TMI 968 - SUPREME COURT OF INDIA) Thus, the ED has no authority over the said vehicle as the Appellant is now the legal transferee of said vehicle. Even in the criminal jurisprudence, if the stolen property is in the hands of unauthorized person then that person cannot claim title to the property. The said recipient cannot retain the property over which he has no legal title and the property should be returned to the lawful owners. In view of above observations, the impugned order dated 29.08.2014 is set aside. The provisional attachment order dated 31.03.2014 also set aside. The bank is permitted to sell the said vehicle to recover part of its outstanding against dues of ₹ 12.45 Lacs. As far as the remaining balance amount is concerned the bank is entitled to recover the remaining amount by taking the appropriate action as per law.
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