Proximate Link Required for Property Attachment, Clarifies Supreme Court

On 17 April 2023 , the Supreme Court in a recent judgement allowed three interlocutory applications seeking vacation or modification of the order dated December 15, 2017, which resulted in the attachment of properties allegedly owned by petitioner Ritika Awasty and her husband Virkaran Awasty, on the ground that prima facie no proximate link could be established to justify the attachment of property of the relatives of the petitioner herein, or the purchaser of her property, to compensate for the defaults that may account to her or her husband

I.A. No.6484 of 2018 sought vacation/modification of the attachment order on properties allegedly owned by Mr. Virender Awasty, Mrs. Veena Awasty, and Mrs. Urmil Tewari, but which actually belonged to Ms. Ritika Awasty and/or her husband. I.A. No.10720 of 2018 sought impleadment of Mrs. Manju Awasty, owner of a property that had been attached, to enable her to file a detailed affidavit in respect of the property. I.A. No.58055 of 2021 sought vacation of the restriction on Mrs. Monica Gogia, who owned another property allegedly owned by Ms. Ritika Awasty and her husband.

The Court held that the ownership of one of the properties was not a disputed fact, and the applicants had no connection to the business dealings of the petitioners. The Court also noted that the second property was transferred to Mrs. Monica Gogia in a bona fide transaction, and there was no link between her and the petitioners' business dealings. Consequently, the Court allowed all three interlocutory applications, and de-attached the property subject to attachment in the order dated December 15, 2017.

The Court clarified that its order was only limited to the reliefs sought in the interlocutory applications and would not affect any other investigations or proceedings connected with the main matter or extradition proceedings against Ms. Ritika Awasty and/or her husband. The Court also directed that the main matter would be listed once the extradition proceedings against the petitioners reach their conclusion.

This judgement by the Supreme Court provides relief to the applicants and affirms the importance of establishing a proximate link to justify the attachment of properties.

RITIKA AWASTY vs STATE OF U.P. & ORS.    

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