Balasore Alloys says PMLA appellate tribunal records ED provisional attachment notice 'wrongly issued'

Balasore Alloys Ltd today said the Appellate Tribunal for PMLA has recorded that the ED had "wrongly issued" provisional attachment notice to the company last December, and it was contrary to the scheme of the Prevention of Money Laundering Act.

It said that the tribunal has also recorded that the proceedings in respect of the provisional attachment "are contrary to an earlier order" passed by it and that Balasore Alloys (BAL) is not involved in any Schedule Offence under the PMLA Act.

"It has also been recorded that notice under Section S(1) of the PMLA Act has been wrongly issued to BAL and that the same is contrary to the scheme of the PMLA Act," BAL said in a filing to the BSE.

The tribunal has fixed the appeal for final disposal on July 17, 2018, it added.

The Enforcement Directorate (ED) had on December 15, 2017, issued a provisional attachment order against BAL.

The Appellate Tribunal for PMLA in an order dated May 23, 2018, in response to an appeal filed by BAL assailing ED's attachment, has held that "BAL is an independent legal entity".

"The Hon'ble Tribunal also recorded that there is no dispute that BAL is not an accused party and there is no PMLA complaint pending against BAL," the company said.