Appellate Tribunal for Prevention of Money Laundering Act (‘PMLA’) rules in favour of appellant (Shapoorji Pallonji & Co. P. Ltd.) and quashes Provisional Attachment Orders (PAO), releases the attached movable & immovable properties worth Rs. 111.50 cr. in favour of Appellant, places reliance on income-tax proceedings; Appellant had advanced Rs. 141.50 cr. to Nilesh Thakur Group of Companies / entities [Respondent/Accused] for acquisition of land under an agreement, however, pursuant to a charge-sheet / FIR filed upon investigation in the accused’s corruption case, it was revealed that the accused had utilized majority of the advances [i.e. Rs. 111.50 cr.] received from the appellant for purchase of ownership flats, vehicles, investment in Bank FDRs etc.; Further such immovable properties etc. [having been acquired from the appellant’s funds] were subject matter of various PAOs by the Enforcement Directorate [ED] in PMLA proceedings on the grounds that the said properties constituted proceeds of crime involving money laundering; Tribunal notes that the amount of Rs.141.50 cr. is legitimately earned money of the appellant and are not proceeds of crime, further refers to ITAT order in appellant’s income tax matter whereby the ITAT had given a clear finding that the amount of Rs. 141.50 cr. advanced by the appellant was a genuine advance for its business purposes; Tribunal rejects ED’s stand that the proceedings and orders passed by the authorities under the Income-Tax Act have no connection with the proceedings under the PMLA, notes that the entire basis of the charge-sheet were the adverse observations made by the AO under the Income-tax Act which were eventually negated by ITAT, thus holds that the very foundation of PAO had ceased to exist; Concludes that the attachment in respect of Rs. 111.50 cr. or properties acquired out of the same was clearly unauthorized, holds the appellant as the beneficial owner of the said properties.
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