TMI Blog2016 (12) TMI 1249X X X X Extracts X X X X X X X X Extracts X X X X ..... the order. In this case, before taking action u/s 5, the Deputy Director has conducted a thorough enquiry by issuing summons to Sridhar, his wife Kumari, his younger brother Senthil, his daughter Dhanalakshmi and Ramesh Pothi. She has obtained the income tax particulars of Sridhar, his wife Kumari, his younger brother Senthil, his daughter Dhanalakshmi and Ramesh Pothi, and also the land particulars. She has also recorded the statement of the POTHYS. Only thereafter, she has initiated the proceedings u/s 5 and therefore, this Court cannot say that there are no sufficient materials for her to proceed u/s 5. Here, after the Deputy Director has initiated proceedings u/s 5 and attached the property for 180 days, she has lodged a complaint ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are being made by the police to have him brought to India to face the music. There is no scintilla of a doubt that the offence alleged against him would fall within the definition of scheduled offence defined under Section 2(y) r/w the Schedule to the PMLA. The police placed the necessary materials before the Deputy Director of Directorate of Enforcement for taking appropriate action under the PMLA. The Enforcement Directorate registered a case in ECIR No.CEZO/03/2016 on 09.03.2016 for offences under the PMLA. The Deputy Director issued summons to Sridhar, his wife Kumari, his younger brother Senthil, his daughter Dhanalakshmi and Ramesh Pothy, calling upon them to attend the enquiry. Sridhar and Kumari did not appear, but others appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d a property adjacent to the properties purchased by them from Kumari and Dhanalakshmi and that they had made the purchase only for the purpose of acquiring free ingress and egress from the main road to the property which they already owned. He also contended that the petitioners are bona fide purchasers for a valuable consideration and therefore, the property acquired by them cannot be proceeded against by the authorities under the PMLA. He further submitted that there is a jurisdictional error in the provisional order of attachment inasmuch as there is no material worth its salt for the Deputy Director to even initiate proceedings u/s 5(i) of the PMLA. In other words, he contended that the property in the hands of the POTHYS is not procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lved in any process or activity connected with the proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of offence of money-laundering. 11. In Section 2(u), the words any property and any person are used. The Section does not say that at the relevant point of time, the property in question must be in the hands of the alleged offender. This can be elucidated with an example. A professional assassin would quote a price for an elimination from his hirer. The price will mostly be in terms of money . He would successfully complete his assignment and take his price in money. That is one proceeds of crime. The money will not be in the same avatar ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause to believe that thing but not otherwise. 14. Section 5 has employed the expression reason and not reasons , which means that even if there is one cause which is sufficient for the Deputy Director to believe that a particular property is proceeds of a crime, action u/s 5(1) can be initiated. This Court cannot step into the shoes of the Deputy Director and appraise the material that formed the basis for initiating action u/s 5, since this Court is not sitting in appeal over the order. 15. In this case, before taking action u/s 5, the Deputy Director has conducted a thorough enquiry by issuing summons to Sridhar, his wife Kumari, his younger brother Senthil, his daughter Dhanalakshmi and Ramesh Pothi. She has obtained the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned as a result of criminal activities. Along with the show cause notice, a copy of the complaint and the documents appended thereto have also been furnished to the POTHYS. Now, it is for the POTHYS to appear before the Adjudicating Authority and place their defence. The contention of Mr.B.Kumar, learned Senior Counsel that the Appellate Tribunal must be manned by a Bench of two members is a clear misreading of the provision. To appreciate his contention, it may be relevant to quote Section 27(2)(b) of the PMLA: 27. Composition, etc., of Appellate Tribunal.- (2) Subject to the provisions of this Act,- (a) ..... (b) a Bench may be constituted by the Chairperson with one or two Members as the Chairperson may deem fit. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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