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2019 (1) TMI 1181 - AT - Money LaunderingOffence under PMLA - Provisional Attachment Order - property purchased as proceeds of crime - assessee is an educational institution - Held that:- It is admitted position that the appellants are neither arraigned in any schedule offence nor in any charge-sheet. The appellants are running educational institutions and the Respondent has issued the impugned attachment order and complaint on the erroneous premise of “any property” of “any person” without focusing its attention as to first pre-requisites in law of existence of any “proceeds of crime” and availability of “material” to lead to “reasons to believe” as required under Section 5 of PMLA. In the present case, one fact is very clear that Adjudicating Authority has not at all considered the written submission submitted by the Appellants before him. The respondents and the Adjudicating Authority have miscarried itself in law by ordering attachment and confirmation of the attachment in the absence of any “proceeds of crime”. In the absence of proceeds of crime the very exercise of powers by the respondents under PMLA is beyond jurisdiction. The contentions of Appellants have not been met including denial of cross-examination. The properties of the appellants were attached towards value thereof. The said properties were not purchased from the proceed of crime. It is inter-se disputes between the appellants and Nilesh J. Thakur about the money parked at the hand of Kalyani Group. However, it is not disputed by any party that the said amount was originally owned by the SPCL which is not tainted even as admitted by the counsel for the ED. Thus, the question of proceed of crime or money laundering by any appellant in all appeals does not arise. The appellants‟ properties, therefore, wrongly attached by the ED. Appeals allowed.
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