Home Case Index All Cases Money Laundering Money Laundering + AT Money Laundering - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 1378 - AT - Money LaunderingOffence under PMLA - Encashment of securities while appeal was pending - HELD THAT:- One day after the receipt of the impugned order on 7.6.2019, the respondent has encashed the mutual funds/securities. - It is evident that the respondent by encashing the mutual funds at the pre-mature stage is directly contrary to Sub-rule (4) of Rule-4 without expiry of period of appeal. It is correct that the respondent is an independent agency and once the order is confirmed, after serving the notice under Section 8(4) and subject to filing of appeal and passing of an order, the respondent is entitled to take the possession. With regard to movable property, the sub-rule 4 of Rule 4 has to be complied very strictly. In case any breach of the said rule, the Appellate Tribunal has a power to interfere with. IO in the matter has encashed the mutual funds at the premature stage which is contrary to rule and it would have been better if IO should have either approached to the High Court to bring to the notice of Court before altering the property or he would have waited the decision of the High Court where CBI has filed the appeal against the order passed by Special Court, CBI, who released the said property subject to certain conditions. At the maximum, mutual funds could have been taken into its possession till the orders are passed by the Hon’ble High Court of Delhi. No harm would have caused as the attachment orders are already continuing redundant. IO ought to have informed the Hon’ble High Court of Delhi at New Delhi in advance before taking any steps in respect of mutual funds which are the subject matter of appeals filed by the CBI, in order to alter the status of movable property which was released by the Special Court in relation to same subject matter of property. Under these circumstances, prima facie the mutual funds must be restored to the original position with the Reliance Nippon Life Asset Management Ltd. If it is not possible, the IO shall prepare the FD for the same amount in the name of ‘Sandeep Tyagi’ for the period of one year and shall keep the same with the respondent. It is clarified that once the compliance is made, the status quo order shall continue. The appellants shall not deal the said money or mutual funds after maturity in any manner. The order passed on 11th July, 2019 for status quo is also modified and after compliance, both parties shall maintain status quo in respect of mutual funds or the FD prepared.
|