Serajuddin & Co. Vs Deputy Director (Appellate Tribunal under SAFEMA, New Delhi)
₹784-Crore Compensation for Illegal Mining Does Not Wipe Out “Proceeds of Crime”; PMLA Attachment of ₹622-Crore FDs Upheld: SAFEMA Tribunal
The Appellate Tribunal under SAFEMA has upheld the attachment of fixed deposits and bank deposits valued at approximately ₹622.62 crore, holding that payment of compensation pursuant to the Supreme Court’s directions for illegal mining does not amount to compounding of the offence of money laundering or extinguish the alleged proceeds of crime. The Tribunal further held that quashing of criminal proceedings against certain individual partners did not terminate the PMLA proceedings against the partnership firm when the Orissa High Court had expressly permitted such proceedings to continue against the firm.
Background
M/s Serajuddin & Co., a partnership firm engaged in mining iron ore and manganese ore in Odisha, was accused of undertaking production exceeding the limits approved under its mining plan and environmental clearance.
Following searches conducted on July 9, 2015, the Enforcement Directorate issued directions to various banks to freeze the firm’s current accounts and fixed deposits. The amounts lying in these accounts were stated to have originated from the sale of iron ore and manganese ore.
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