Smt. Reshma Biswas Das Vs Deputy Director (Appellate Tribunal Under SAFEMA Delhi)
The Appellate Tribunal under SAFEMA dismissed the appeal and upheld the provisional attachment under PMLA, rejecting the core contention that properties unconnected with criminal activity (and acquired prior to the offence) cannot be attached. The case arose from a bank fraud involving diversion of loan funds, where proceeds of crime were siphoned off and became untraceable.
The Tribunal held that the definition of “proceeds of crime” under Section 2(1)(u) has multiple limbs and clearly includes not only tainted property, but also the “value of such property”, thereby permitting attachment of equivalent value properties when actual proceeds are not available. Relying on Vijay Madanlal Choudhary (SC) and subsequent High Court rulings, it clarified that attachment of equivalent property is not restricted to cases where assets are held abroad, and can extend to untainted properties of equivalent value.
The argument that properties were acquired prior to the commission of offence was rejected, with the Tribunal holding that timing of acquisition is irrelevant in cases of equivalent value attachment. It further emphasized that under PMLA, there is a reverse burden of proof, and the assessee must establish that the properties are not linked to proceeds of crime.
On facts, the Tribunal noted that properties were transferred within family members through gift deeds to shield assets, and sufficient material existed to form “reason to believe” under Sections 5 and 8. Accordingly, finding no legal or factual infirmity, the Tribunal upheld the attachment and dismissed the appeal.
FULL TEXT OF THE JUDGMENT APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI
These appeals arise from the order dated 10.12.2024 passed by the Adjudicating Authority (AA) constituted under the Prevention of Money Laundering Act, 2002 (PMLA), in Original Complaint (OC) No. 2371/2024 confirming the Provisional Attachment Order No. 10/2024 dated 03.07.2024 passed in Enforcement Case Information Report No. ECIR/KLZO/08/2018. Vide the said order, the Ld. AA has confirmed the provisional attachment of following properties relating to the appellants herein:
Sr. |
Properties Details/referen ce No in the OC |
Owner and Defendant |
Date of Acquisition |
Whether attachment based on Direct Proceeds of Crime |
Whether attachment is as equivalent value of Proceeds of Crime |
Value of
|
|---|---|---|---|---|---|---|
1. |
Land measuring 3.034 DEC with a shopping premise of approximately 600 sq ft attached thereto registered under Gift Deed no I-2078/2012 in the office of ADSR, Habra, West Bengal. |
Smt. Reshma Biswas Das, W/o Shri Prasenjit Das – Defendant No. 1 |
In the year 2012 |
No |
Value thereof(V) |
4,66,484/- (As per deed Market Value) |
2. |
Land measuring 0.825 DEC registered under deed Gift Deed No I-2079/2012 in the office of A.D.S.R. Habra, West Bengal |
In the year 2012 |
No |
Value thereof(V) |
23,894/- (As per Market value mentioned in deed) |
|
3. |
Land measuring 1.65 DEC with an old three stories residential premise of total approximately 800*3=2400 sq ft attached thereto registered vide title Gift Deed No I-
|
In the year 2012 |
No |
Value thereof(V) |
8,64,238/- |
|
4. |
Land measuring area of 6.6 Decimal, Area of Structure 2184 00218/00000, Khatain No. 02942/00 District: North 24 Parganas, PS: Habra, Mouza: Asrafabad, Habra Road. Vide deed no. I-07097 of 2013 |
In the year 2013 |
No |
Valuethereof(V) |
19,93,050/- (As per deedMarket Value) |
Facts in Brief
