The Supreme Court on Monday dismissed a plea challenging proceedings before the PMLA Adjudicating Authority in connection with the ₹110-crore attachment of the Westin Hotel in Goa, while granting the petitioners liberty to seek an adjournment before the Authority.
The matter arose from proceedings concerning the provisional attachment of the property under the Prevention of Money Laundering Act. During the hearing, Senior Advocate Abhimanyu Bhandari, appearing for the petitioners, challenged the manner in which the Adjudicating Authority was proceeding with the matter, particularly the issuance of the show-cause notice by a single member. Relying on the Supreme Court’s judgment in Vijay Madanlal Choudhary v. Union of India, (2022) 10 SCC 24, he submitted that the material is required to be placed before the three-member Adjudicating Authority, which must examine it and apply its mind before deciding whether to proceed further. He submitted:
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“The adjudicating authority is not a post box, they are supposed to apply their mind.”
The petitioners sought protection against further proceedings. Senior advocate Mukul Rohatgi submitted that the judgment has been reserved by this court. The Bench of Chief Justice Surya Kant, Justice Joymalya Bagchi and Justice V Mohana then indicated that since the judgment in the matter had already been reserved, the appropriate course would be for the petitioners to approach the Adjudicating Authority and request that the proceedings be adjourned until the Supreme Court’s decision.
The Court told counsel that the petitioners could request the Adjudicating Authority not to pass a final order until the Supreme Court delivered its verdict. Counsel then sought that the Supreme Court record liberty for such a request to be made, following which the Bench agreed to grant the liberty.
The proceedings relate to the ₹110-crore provisional attachment of the Westin Hotel, Goa. The Enforcement Directorate has alleged that ₹60 crore in cash paid in connection with the acquisition represented proceeds of crime, with the remaining amount attached as the value of alleged proceeds of crime.