[Anil Deshmukh property attachment] Cannot restrain authority from taking decision: Bombay High Court

The Bombay High Court on Friday directed the Enforcement Directorate (ED) not to take any coercive action against properties of former Home Minister Anil Deshmukh based on the final order of the adjudicating authority under the Prevention of Money Laundering Act (PMLA) till January 10, 2022.

. The Court, however, allowed the adjudicating authority to proceed with the hearing and pass orders which will be subject to the outcome of the plea filed by Deshmukh's wife before the High Court

. The order was passed by a Bench of Justices Gautam Patel and Madhav Jamdar while hearing a plea filed by Deshmukh's wife assailing provisional attachment of assets worth ₹4.20 crores belonging to Deshmukh and his family held in her name - Aarti Deshmukh and company Premier Port Links Private Limited.

On Monday, the Bench had directed that while the "Adjudicating Authority" under PMLA could complete the hearing, it should not pass any final order till the High Court decides the present plea.

. However, Additional Solicitor General Anil Singh on behalf of ED mentioned the plea on Tuesday raising a grievance that the Central agency had not been heard before the directions were passed.

Singh submitted that whatever be the composition of the "adjudicating authority", it ought to be allowed to complete the proceedings including passing of the order and confirming any attachment of assets.

. Senior Advocate Vikram Chaudhri opposed the same stating that once the order is passed, there will be coercive action taken in terms of physical possession of the property which will be lead to adversity.

He pointed out the point of law raised in the present petition had been challenged before several courts in the country and hence it was important for this High Court also to consider it.

. The Bench clarified that under no circumstances is it inclined to interrupt or delay the adjudicating authority.

"We cannot restrict any adjudicating authority from performing its act; that is not our intent. The single member will not decide, but the adjudicating authority will proceed to hear and those orders are subject to the outcome in the writ," the Court said.

. The Bench found the ASG's submission to be correct in that the authority could proceed in accordance with law keeping all contentions expressly open including on maintainability.

Keeping all contentions, including the challenge to maintainability, the Bench directed that all orders (of the PMLA adjudicating authority) were subject to the outcome of these proceedings.

"We only direct that if a final order is passed between now and January 10, 2022, the order and further steps taken will be subject to the orders of the court. This order is not a reason to seek an adjournment before the authority nor to submit that no order should be made by the authority," the Bench held.

. ED had initiated a probe against Deshmukh and his associates after the Central Bureau of Investigation (CBI) filed a first information report (FIR) following a court-directed enquiry into the allegations of corruption and misuse of his official position.

ED has provisionally attached assets worth ₹4.20 crores belonging to Deshmukh and his family held in the name of his wife Aarti Deshmukh and company Premier Port Links Private Limited.

The attached assets included a residential flat of the value of ₹1.54 crore, located at Worli, Mumbai, and 25 land parcels of book value ₹2.67 crores.

. Deshmukh's wife along with Premier Ports moved the High Court with individual petitions.

The following prayers have been sought to:

Direct Central government constitute an 'Adjudicating Authority' as per Section 6 of the Prevention of Money Laundering Act; and

The present Adjudicating authority which is of a single member be restrained from carrying out any further proceedings towards adjudication in their case.

The plea will be heard on January 10, 2022.

. [Read order]

[Anil Deshmukh property attachment] Cannot restrain authority from taking decision: Bombay High Court

Neha Joshi

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