Authority: Supreme Court of India (Civil Appellate Jurisdiction)
Order Date: 10 September 2026
Case Overview
- Parties: Appellants Pawan Chugh & Anr (including Ramesh Kumar Chugh) vs Respondents Union of India & others, notably Directorate of Enforcement (ED).
- FIR No.11 of 2021 registered on 14 Jan 2021 for alleged forgery related to projects of Mahira Infratech Pvt Ltd.
- ED lodged ECIR on 16 Nov 2021; appellants not named as accused.
- On 26 March 2025 ED issued provisional attachment of several properties of the appellants, alleging proceeds of crime transferred to DS Home Construction Pvt Ltd and then ₹8.17 crore to J.P. Textiles account.
- Original Complaint No.213 of 2025 filed before Adjudicating Authority under PMLA on 23 Apr 2025; show‑cause notice issued on 10 May 2025.
- Appellants approached High Court (CWP No.20172 of 2025) seeking quash of attachment, complaint and show‑cause; High Court dismissed on 5 Dec 2025, stating no PMLA provision for substitution.
- Yes Bank, mortgagee of the attached properties, demanded replacement security on 14 Oct 2025, causing financial hardship to appellants.
Final Outcome
- Supreme Court set aside the High Court order dated 5 Dec 2025.
- Appellants may substitute the attached properties (serial numbers 6‑9) by furnishing a bank guarantee of Rs 1,56,30,000/- to the satisfaction of the ED.
- Upon acceptance of the guarantee, the properties will be released from provisional attachment, subject to the final outcome of PMLA proceedings.
- The appellants are prohibited from alienating, transferring, encumbering or creating third‑party rights over the properties, except the existing mortgage to Yes Bank, during pendency of the proceedings.
- The order is limited to the facts of this case and shall not be treated as precedent.
Topics: Money Laundering, Property Attachment