Manish Kumar Rajeshwar vs Joint Director Directorate Of Enforcement, Kolkata

G. C. Mishra, Acting Chairman

MP-PMLA-8441/KOL/2021 (U.H.)

In view of the issuance of notice dated 24.02.2021 for taking possession of the immovable property mentioned in the notice, the appellant/applicant has

filed the urgent application on dated 10.03.2021 for urgent listing of the application for stay on the operation of the impugned eviction notice. The

prayer for urgent hearing is considered and allowed by fixing the case for today. The urgent application is disposed of accordingly.

FPA-PMLA-3955/KOL/2021 & in FPA-PMLA-3955/KOL/2021 MP-PMLA-8398/KOL/2021 (Stay)

Fresh appeal has been filed by the appellant under Section 26 of the Prevention of Money Laundering Act, 2002 (‘PMLA’) against the order

dated 15.01.2021 passed by the Adjudicating Authority, New Delhi under PMLA, passed in O.C. No.1334/2020.

Upon hearing, issue notice. Mr. S.K. Sharma, learned counsel accepts notice on behalf of the respondent (ED). The learned counsel for the

respondent seeks six weeks time to file the reply to the appeal, which is not objected. Considered the prayer and the same is allowed. As prayed, the

learned counsel for the respondent is granted six weeks time to file reply to the appeal with an advance copy to the other side. The learned counsel for

the appellant has sought four weeks time to file rejoinder, if any, after receipt of the copy of the reply to the appeal. The same is also considered and

allowed.

Along with the appeal the appellant has filed application seeking ad-interim stay on the operation and effect of the impugned order dated 15.01.2021 as

well as ad-interim stay of the execution of the eviction notice dated 24.02.2021 issued by the Respondent (ED) under Section 8(4) of the PML Act,

2002 read with Rule 5(1) of the Prevention of Money-Laundering (Taking Possession of Attached or Frozen Properties Confirmed by the

Adjudicating Authority) Rules, 2013, directing the appellant to vacate the premises i.e. “Immovable property of 1655 sq.fts at Mumbai, having

description â€" Flat No. A- 401, Meera Co- operative Housing Society Ltd at off New Link Road, Oshiwara, Jogeshwari (W), Mumbai â€" 40053.

Registered at the office of the Joint Sub Registrar Andheri No.5, Mumbai Sub Urban, Dist- Bandra, Maharashtra†within the stipulated/statutory 10

days period from the date of service of the notice.

During the course of hearing, the learned counsel for the appellant has inter-alia contended that the appellant is neither named in the FIR nor named in

the ECIR and not involved in any offences as far as the Scheduled Offences is concerned or the money laundering is concerned and the alleged

proceeds of crime have been channeled through various entities and have been channeled for the purchase of alleged property and the aforesaid

property is used for residential purpose and is currently being used by tenant for residing there with his family and the rental income which the

appellant is receiving from that property, is being deposited in the ICICI Bank Account of the appellant, which is also attached by the respondent (ED)

and that the learned counsel for the appellant submitted that he is not sure about the rent agreement whether it is a registered one and that the monthly

rental amount be allowed to be deposited in an Escrow Account under the observation and guidance of this Hon’ble Tribunal and to this no such

prejudice would be caused to the respondent.

It is submitted by the learned counsel for the appellant that if the status quo order is not passed then appellant shall suffer grave irreparable injury and

if the physical possession of the aforesaid immovable property is taken by the ED then it would dispossess the lawful tenants and render them

homeless in this very pandemic Covid-19 situation.

It is further submitted by the learned counsel for the appellant that no proceeds of crime involved in the property in question and that the property is

under his possession and the same is given on rent to tenant against a monthly rent of Rs.80,000/- per month.

On the aforesaid grounds the appellant is seeking stay of the operation of the impugned order and ad-interim stay on the eviction notice dated

08.03.2021.

On the other hand, the learned counsel for the respondent (ED) vehemently objected to the submissions made by the appellant’s counsel for

granting of any interim relief to the appellant. He has inter-alia submitted that the proceeds of crime has travelled to the appellant for the purchase of

the property and that the defendant no.1 Mr. Neeraj Singh has transferred the tainted amount to the present appellant through defendant no.6 Mr.

Govind Agarwal. During the course of hearing, on being asked, he could not cite any document for transfer of the money from defendant no.1 to

defendant no.6 at this stage but he submitted that cash has been paid to defendant no.6 and he further submitted that it is there in the statement

recorded under Section 50 of the PMLA, 2002. However, he submitted that he will file appropriate reply to the stay application within six weeks,

which is not opposed. Let the reply be filed within six weeks with an advance copy to the other side. On the aforesaid grounds the learned counsel for

the respondent prayed that no relief may be granted.

Heard both sides and perused the materials available on record. It is the contention of the appellant that he is in possession of the property and tenant

is residing there for a rent of Rs.80,000/- per month and that the Enforcement Directorate, to his information, has not taken any possession of the

aforesaid property even though the notice is served on 24.02.2021 and that he has agreed to maintain status quo over the property.

In view of the above, after considering the submissions made by both the parties, it is hereby ordered that both the parties to maintain status quo with

respect to the aforesaid properties attached in the present proceedings till the next date of hearing. If the property is still in possession of the tenant,

the appellant is directed to deposit monthly rent amount of Rs.80,000/- with the respondent (ED) by 15th day of the next month till the next date of

hearing. The appellant is directed to produce the copy of the rent agreement by the next date and copy of which be served on the other side.

The aforesaid order of ad-interim ‘status quo’ is subject to the following conditions:-

i. Attachments shall continue.

ii. The legal and constructive possession of the properties in question shall remain with the Enforcement Directorate;

iii. The appellant is prohibited to create any third party right, transfer or dispose of the properties in question in any manner;

iv. The appellant shall not alter the nature and character of the properties in question, as on today.

v. No encumbrance shall be created by the appellant in respect of the aforesaid properties.

Respondent (ED) is granted six weeks time to file the reply to the stay application with an advance copy to be served on the other side.

With the consent of both the parties, list the matter on 27th July, 2021.