Property Can Be Attached Without Direct Money Laundering Charge | SAFEMA

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Property attachment money laundering

Case Details: Ashok Mangal vs. Deputy Director Directorate of Enforcement, Jaipur [2026] 183 taxmann.com 40 (SAFEMA-New Delhi)

Judiciary and Counsel Details

  • Balesh Kumar & Rajesh Malhotra, Member
  • S. Vasudevan Mahendra Singh, Adv. for the Appellant.
  • Abhimanyu Kaul, Adv. for the Respondent.

Facts of the Case

In the instant case, an investigation by ED revealed that one ‘M’, Accounts Assistant at the Office of the Divisional Finance Manager, North Western Railway, was under investigation for alleged embezzlement of government funds.

As per the charge sheet, during the investigation, it was revealed that from 17.08.2006 to 03.05.2011, ‘M’, while working as a Cheque Writer, fraudulently issued a total of 94 cheques, worth Rs. 4.16 crore, of different Treasury Banks of railways in his own name and deposited the same in his own different bank accounts.

He withdrew huge proceeds of crime amounting to Rs. 3.68 crore in cash through cheques and from ATM and also issued cheques in the name of others and used the embezzled amount for his own purposes. In this way, he committed fraud to the extent of Rs 4.16 crore and caused a huge loss to the Railway Exchequer.

An investigation also revealed that ‘Cash money’ of Rs. 60 lakh was deposited in the accounts of the appellant (Assistant Divisional Finance Manager in the Office of the Senior Divisional Finance Manager, North Western Railway) and his wife, as he tendered amounts to both of them from time to time. The said deposits were clearly out of the embezzled amount given by ‘M’ and point towards the direction regarding the involvement of the appellant in the offence of money laundering.

Further, movable and immovable properties were acquired by the appellant and his wife from the proceeds of crime.

SAFEMA Held

It was noted that the appellant had actively colluded and assisted ‘M’ in layering, use and projection of tainted money, as untainted, and hence, the appellant’s involvement in money laundering was not completely ruled out.

Thus, the impugned order passed by ED provisionally attaching (PAO) appellant’s properties to the extent of Rs. 60 lakh and the subsequent order of Adjudicating Authority confirming said PAO, was justified.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied