Court-Sanctioned Buyer Entitled to Release of PMLA-Attached Property: SAFEMA

Amanecer Green Pvt. Ltd. Vs Deputy Director (Appellate Tribunal under SAFEMA)

Bona Fide Court-Sanctioned Buyer Entitled to Release of PMLA-Attached Property; Attachment Can Follow Sale Consideration Lying with Court: SAFEMA Tribunal

The Appellate Tribunal under SAFEMA has directed the release of a power plant purchased by a bona fide buyer through court-supervised proceedings, while permitting the Enforcement Directorate to seek attachment of the ₹6.95 crore sale consideration lying with the Court Receiver as a substitute for the property.

Background

Several FIRs were registered against M/s Garvit Innovative Promoters Ltd., its promoter and associated persons in connection with the alleged “BIKEBOT” investment fraud. Investors were allegedly induced to invest ₹62,100 per bike on the assurance of monthly rent, EMI payments and bonuses.

Following the registration of approximately 25 FIRs, the Enforcement Directorate recorded an ECIR and provisionally attached several properties as proceeds of crime or properties of equivalent value.

One of the attached assets was a 6 MW biomass power plant, together with approximately seven acres of land, buildings and machinery situated at Nashik, Maharashtra. The property belonged to M/s Envirotech Pvt. Ltd., also referred to as M/s Mars.

Subsequent Purchase of Attached Property

The appellant, M/s Amanecer Green Pvt. Ltd., entered into an agreement dated December 17, 2020, to purchase the power plant for ₹10.17 crore. The agreement stipulated that, in case of default by the seller, the purchase price would stand reduced to ₹9 crore.