Coal block allocation letter constitutes 'property': Delhi HC

New Delhi: The Delhi High Court on Friday said that a coal block allocation letter constitutes “property” within the meaning of the Prevention of Money Laundering Act (PMLA), adding that “intangible property” has assumed immense legal and commercial significance in modern era.

A bench of justices Anil Kshetarpaland and Harish Vaidyanathan Shankar said that the coal block allocation letter was an instrument evidencing a right or interest to obtain a mining lease from the government and extract coal through its utilisation.

The bench made the observation while overturning a single-judge judgment of July 2022, which had held that mere allocation of coal block cannot be termed as proceeds of crime under the PMLA.

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“Since the allocation letter enabled the commission of money laundering, the letter is not only relevant but also constitutes property involved in money laundering under the scheme of the (Prevention of Money Laundering) Act,” the court said.

The bench added, “In the modern era, as also evidenced by the usage of terms to define property under Section 2(1)(v) of the PMLA, intangible property has assumed immense legal and commercial significance.”

“The evolution of Intellectual Property laws now comprehends rights such as copyrights, trademarks, design rights, patents, licenses, digital assets and contractual entitlements, all of which are firmly recognised as valuable forms of property within the framework of common law,” the court said.

The court was hearing an appeal against the single judge order, that had reached the findings on a plea filed by Prakash Industries Limited (PIL) challenging an attachment order issued by the Enforcement Directorate.

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