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2018 (12) TMI 1193 - AT - Money LaunderingOffence under Prevention of Money Laundering Act - Attachment of bank account - Held that:- The PMLA allows retention/continuation of freezing action by the Respondent No. 1 only under circumstances mentioned in Section 20(1) of the PMLA, that is, if the property is required for the purpose of adjudication under Section 8, PMLA. The Adjudicating Authority can authorize retention only if it is satisfied that the property is “prima facie involved in money-laundering and the property is required for the purposes of adjudication under section 8”. The Authority cannot permit retention or continuation of freezing order for any other purpose than those provided in section 20(4). As far as proceedings pertaining to freezing of properties under the PMLA, the officer carrying out the freezing action under 17(1A) has to record his reasons to believe in writing in terms of section 17(1) (i) to (iv), PMLA. Even after the property is frozen, the officer has to record his reasons to believe in writing and pass an Order for continuation of freezing of the property in terms of section 20(1) read with 20(2), PMLA. In the case, there is no other attachment, except the bank account. The impugned order dated 12.9.2017 against the appellant with regard to continuation of attachment of account is set-aside by allowing the appeal. However, it is clarified that, no opinion is expressed or any direction to the bank about the declaration of NPA, the said issue, if any by the bank to be decided or reconsidered as per its own merit. OA against the appellant is accordingly dismissed.
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