Provisional attachment under anti-money laundering law sustained where prior hearing was given and statutory requirements were met.

Provisional attachment under the Prevention of Money Laundering Act, 2002 was upheld where the competent authority had materials to believe the attached properties were likely proceeds of crime and acted to prevent transfer or concealment. The High Court noted that the petitioners had already been given an opportunity before attachment, that the order was only provisional, and that their objections could be pursued in adjudication proceedings. It also recorded that the attachment was initiated after registration of the scheduled offences and found the action to be in conformity with the statutory scheme. The challenge based on breach of natural justice and non-compliance with Section 5 therefore failed.

---

---

Issues: Whether the provisional attachment order was vitiated for want of a further opportunity of hearing and whether it was in conformity with Section 5 of the Prevention of Money Laundering Act, 2002.

Analysis: The petitioners challenged the provisional attachment on the ground that another hearing ought to have been afforded before attachment and that denial of such opportunity amounted to breach of natural justice. The order records that the petitioners were given an opportunity before the attachment was made, and the competent authority, on being satisfied that there were materials to believe that the properties in their possession were likely to be proceeds of crime, passed the attachment order to prevent transfer or concealment. The Court also noted that the attachment was only provisional and that the petitioners could raise their objections in the adjudication proceedings. The attachment was found to have been initiated after registration of the scheduled offences and to be in strict conformity with the statutory scheme.

Conclusion: The challenge to the provisional attachment failed and the order was held not to suffer from violation of natural justice or non-compliance with Section 5 of the Prevention of Money Laundering Act, 2002.

---