PANAJI
The Bombay High Court at Goa has set aside an order of the Enforcement Directorate to provisionally attach properties belonging to former Chief Minister Digambar Kamat and former PWD Minister Churchill Alemao in connection with the Louis Berger bribery case.
Kamat and Alemao saw movable and immovable assets worth Rs 1.20 crore and Rs 75 lakh respectively attached by the Enforcement Directorate under the Prevention of Money Laundering Act after they were booked by the Goa Police under the Prevention of Corruption Act in the Louis Berger bribery scandal.
The High Court agreed with the counsel for Kamat and Alemao who argued that the properties should have been attached only if the authorized officer has reason to believe that any person is in possession of any proceeds of crime and such proceeds of crime are likely to be concealed, transferred or dealt with in any manner which may result in frustrating any proceedings.
Neither of the two conditions was met, when both were required to be met, they argued.
The Enforcement Directorate, however, argued that either of the conditions needed to be met and in this case the authorized officer had reason to believe that the assets were the proceeds of a crime.
The High Court, however, agreed with the petitioners.
“It is not sufficient that the director or the authorized officer merely entertains such a reason to believe in his mind but further, the reasons for such belief are required to be recorded in writing. In the present case, analysis of the Joint Director’s order dated 30.03.2017 makes it clear that there are no reasons whatsoever recorded by the Joint Director in support of his alleged belief that the proceeds of crime were likely to be concealed, transferred or dealt with in any manner by the Kamats or Alemaos to frustrate proceedings relating to the confiscation of such proceeds,” the High Court said.
During the course of the arguments, both Kamat and Alemao assured the court that even if the court ruled in their favour they would not liquidate the assets in question until the cases under the Prevention of Money Laundering Act currently underway were disposed off.
“The appellants will have to abide by this statement. In case Kamats wish to alienate or encumber any of the immovable properties or to liquidate any of the FDRs, they will have to seek prior permission from the Special Court,” the High Court ruled.
The High Court also directed the Special Court at Mapusa “to dispose of PMLA Case No.1/2018 as expeditiously as possible and in any case within one year from the date on which the parties place on its file the authenticated copy of this order.”
