WHAT IS CONFIRMED ATTACHED IMMOVABLE PROPERTY?

The Prevention of Money Laundering Act, 2002 (PMLA) was enacted with the objective of prevention of money laundering and for providing for confiscation of property derived from, or involved, in money laundering.

In order to achieve the above objectives, Section 5 (1) of the PMLA provides for provisional attachment of property during the course of investigation, by way of issuance of a Provisional Attachment Order (PAO). Section 5(1) of the PMLA is reproduced as under :

“5. Attachment of property involved in Money Laundering - (1)Where the Director or any other officer not below the rank of Deputy Director authorised by the Director for the purposes of this section, has reason to believe (the reason for such belief to be recorded in writing), on the basis of material in his possession, that--

(a) any person is in possession of any proceeds of crime; and

(b) such proceeds of crime are likely to be concealed, transferred or dealt with in any manner which may result in frustrating any proceedings relating to confiscation of such proceeds of crime under this Chapter,

he may, by order in writing, provisionally attach such property for a period not exceeding one hundred and eighty days from the date of the order, in such manner as may be prescribed….”

Once a provisional attachment order is passed, the property shall remain attached for a period of 180 days from the date of passing of such order and pending the confirmation of the attachment order by the Ld. Adjudicating Authority.

If the Ld. Adjudicating Authority finds that the property is involved in money laundering, it confirms the Provisional Attachment Order under Section 8(3) of the PMLA, 2002. Once an order under Section 8(3) has been passed the property remains attached for 365 days or till the pendency of proceedings related to offence under the Act.

Section 8(3) is reproduced herein –

"3) Where the Adjudicating Authority decides under sub-section (2) that any property is involved in money-laundering, he shall, by an order in writing, confirm the attachment of the property made under subsection (1) of section 5 or retention of property or record seized or frozen under section 17 or section 18 and record a finding to that effect, whereupon such attachment or retention or freezing of the seized or frozen property] or record shall—

(a) continue during investigation for a period not exceeding three hundred and sixty-five days or the pendency of the proceedings relating to any offence under this Act before a court or under the corresponding law of any other country, before the competent court of criminal jurisdiction outside India, as the case may be; and

 (b) become final after an order of confiscation is passed under sub-section (5) or sub-section (7) of section 8 or section 58B or sub-section (2A) of section 60 by the Special Court;

Explanation.—For the purposes of computing the period of three hundred and sixty-five days under clause (a), the period during which the investigation is stayed by any court under any law for the time being in force shall be excluded."

The confirmed attached immovable properties are such immovable properties, which have been attached by Directorate of Enforcement and confirmed by the Ld. Adjudicating Authority.

Once a provisional attachment order has been confirmed the Directorate issues notice to take the possession of the property under Section 8(4) of the PMLA, 2002.

Section 8(4) is reproduced herein –

"(4) Where the provisional order of attachment made under sub-section (1) of section 5 has been confirmed under sub-section (3), the Director or any other officer authorised by him in this behalf shall forthwith take the possession of the property attached under section 5 or frozen under sub-section (1A) of section 17, in such manner as may be prescribed."

Note: General Public is hereby cautioned not to deal with such immovable property in any manner, whatsoever as the said property may be liable for confiscation by the Government at a later stage as a result of the proceedings under PMLA.

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