Writ challenge to provisional attachment under PMLA declined, with objections left for adjudication proceedings

A writ challenge to a provisional attachment order and show cause notice under the Prevention of Money-Laundering Act was not entertained because adjudication proceedings under Section 8 were already pending and the issues raised involved mixed questions of fact and law. The petitioners were directed to place all objections and defences before the Adjudication Authority, which was asked to decide the matter expeditiously. The text also notes that Section 5(4) permits a person interested in the immovable property to enjoy it pending proceedings.

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Issues: Whether the provisional attachment order and show cause notice under the Prevention of Money-Laundering Act, 2002 deserved to be quashed at the writ stage, or whether the petitioners should be relegated to raise their objections in the pending adjudication proceedings.

Analysis: The challenge involved mixed questions of fact and law. Since a show cause notice had already been issued and adjudication proceedings were pending under Section 8 of the Prevention of Money-Laundering Act, 2002, the proper course was to permit the petitioners to place all their pleas and defences before the Adjudication Authority. The Court also noted that Section 5(4) of the Prevention of Money-Laundering Act, 2002 permitted enjoyment of the immovable property by a person interested in such enjoyment.

Conclusion: The writ petition was not entertained on merits and the petitioners were left to pursue their remedies in the adjudication proceedings, with a direction for expeditious disposal by the Adjudication Authority.

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