9911796707
TMI Blog2023 (5) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... "..... pleased to issue a writ or order more particularly one in the nature of writ of mandamus or an appropriate writ or order declaring the provisional attachment order No.4 of 2023, dated 14/03/2023 issued by the 2nd respondent whereunder attached the accounts of the petitioners without giving any valid reasons, illegal, arbitrary and contrary to the PMLA and consequently set aside the same and allowed the petitioners to operate the bank accounts and pass..." 2. Heard Sri I. Koti Reddy, learned counsel for the petitioners, Sri Josyula Bhaskar Rao, learned Standing Counsel for Respondent Nos. 1 to 4 and Sri G. Sudhakar Kumar, learned Standing Counsel for the 5th respondent-Union Bank of India. 3. Learned counsel for the petitioners, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioners has drawn the attention of this Court to the statements of the said two accounts and contended that in the said two accounts, the deposits were made by the National Highway Authorities only and no private transactions or third-party deposits are made. If at all the authorities want to attach the said accounts also they should do so by giving proper reasons for attaching the said accounts. By virtue of attaching the said accounts, the petitioners are unable to complete the contract works and unable to pay salaries to the employees. As such, prayed to pass appropriate orders. 3. On the other hand, Sri Josyula Bhaskar Rao, learned Standing Counsel for the respondent-authorities vehemently opposed for entertaining the Writ Petition on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition, which is not proper. Accordingly, prayed to dismiss the Writ Petition. In support of his contention, the learned Standing Counsel for the respondents relied on the decision of this Court in B. Trivikrama Prasad v. Enforcement Directorate 2015(2) ALT 602 (S.B.), wherein it was held that the Writ Court has no jurisdiction to entertain a Writ Petition wherein the party has to approach the competent authority who has issued provisional attachment and draw the attention of this Court to paras 15, 16 and 19 of the said Order. 4. In reply to the said submission, learned counsel for the petitioners submitted that a ground has been raised by the petitioners that the order impugned is not inconsonance with the provisions of Section 5(1) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with Section 5 of the PML Act or not. Section 5 of the PML Act reads as follows: "Section 5(1) in The Prevention of Money-Laundering Act, 2002 (1) Where the Director, or any other officer not below the rank of Deputy Director authorised by him for the purposes of this section, has reason to believe (the reason for such belief to be recorded in writing), on the basis of material in his possession, that- (a) any person is in possession of any proceeds of crime; (b) such person has been charged of having committed a scheduled offence; and (c) such proceeds of crime are likely to be concealed, transferred or dealt with in any manner which may result in frustrating any proceedings relating to confiscation of such proceeds of crime unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reads as follows: "Now, therefore, on the basis of material and evidences placed before me, in the ongoing investigation, and having reasons to believe as detailed in Paras above, I, hereby order Provisional Attachment of the properties valued at Rs. 6,74,04,642/- (Rupees Six Crores Seventy Four Lakhs Four Thousand Six Hundred and Forty Two Only) as detailed in the below mentioned SCHEDULE OF THE PROPERTIES, being part of the Proceeds of Crime, as defined under Section 2(1)(u) of the PMLA, 2002 and further order that the same shall not be transferred, disposed, parted with or otherwise dealt with in any manner, whatsoever, until or unless specifically permitted to do so by the undersigned. The properties attached shall remain under att ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 5(1) of the PML Act is also very clear. The scope of entertaining this Writ Petition under Article 226 of the Constitution of India is no doubt limited and this Court cannot adjudicate on provisional attachment order if it is in consonance with Section 5 of the Act, 2002. There is no dispute with regard to the law laid down by various courts in that regard. But Section 5 of the PML Act, referred supra clearly says that the authority should record reasons while attaching the properties, both movable and immovable. However, in the present case, in the impugned attachment order, the respondent-authorities have not recorded any reasons for attaching the subject accounts referred supra. As such, this Court holds that the attachment of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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