TMI Blog2020 (12) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... (1)(u) of the PML Act, 2002 defines the proceeds of crime as a property derived out of criminal activity or even the value of any such property. The submission on behalf of the appellants was acceptable that Section 71 of the PML Act gives an overriding effect to the provisions of the Act over any other law. The whole object of the law of money laundering is to prevent the money laundering and to confiscate the properties derived from and involved in the money laundering or which are those held incidental thereto. The powers exercised for attachment of the properties by the appellants herein have to be justified in that view. If the attachment is released while the appeal is pending, it would render the appeal virtually meaningless from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofessional for M/s.Diamond Power Infrastructure Limited. Thereby the Appellate Tribunal has released the attachment over the properties of M/s.Diamond Power Infrastructure Limited (DPIL) as per order dated 24th April, 2018 which was provisional attachment order and came to be confirmed by the adjudicating authority on 01st October, 2018. 2.1 By way of interim stay, the appellants have prayed for stay of the order and to continue the attachment during the pendency of the appeal. 3. The facts and events in the background leading to the aforesaid order of the Appellate Tribunal under the Prevention of Money Laundering Act are inter alia that Central Bureau of Investigation, Gandhinagar, registered F.I.R. No.0292018A0006 dated 26th March, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tium members. 3.2 The Directorate General of Goods and Service Tax Intelligence issued show-cause notice to M/s.DPIL for fraudulently availing CENVAT credit to the tune of ₹ 100.18 crores by submitting bogus purchase invoices. Such bogus purchase invoices were credited even though no materials were received. The fictitious purchases to the tune of ₹ 500 crores were noticed which was a fraudulent act to avail CENVAT credit. It is further stated in the F.I.R. that the above modus operandi involving forged documents and divulgence of funds resulted into availability of stock to the tune of ₹ 388.44 crores which was a quite inadequate for repayment of loan which was stated to the extent of ₹ 2654.40 crores. 3.3 On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2018. The provisional attachment order was passed on 24th April, 2018. 4.1 It was submitted that the Tribunal therefore misdirected itself in recording in paragraph No.44 that the provisional attachment was subsequent to the moratorium order was passed by NCLT, highlighting that provisional attachment order was dated 24th April, 2018. It was shown that the attachment was prior to the proceedings under the Code, 2016 being admitted by the NCLT on 24th August, 2018. The moratorium period would start, submitted learned Additional Solicitor General, from 24th August, 2018. It was submitted that the appeal deserves to be admitted and the lifting of attachment order is required to be reviewed in the facts of the case. 4.2 On the other hand, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be unjustified in law. Section 2(1)(u) of the PML Act, 2002 defines the proceeds of crime as a property derived out of criminal activity or even the value of any such property. 6.1 When the properties in question are held and maintained by M/s.DPIL and when M/s.DPIL derives benefits and get itself enriched from such properties, they could be properly attached, else the appellants could not have any source to recover the proceeds of crime laundered by M/s.DPIL. The submission on behalf of respondent No.1 could hardly be countenanced. 6.2 The submission on behalf of the appellants was acceptable that Section 71 of the PML Act gives an overriding effect to the provisions of the Act over any other law. The whole object of the law of mo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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