Court orders release of interest and income from attached assets under PMLA to Official Liquidator

The Court allowed the writ petition, ordering the release of interest and income accrued on assets attached under the Prevention of Money Laundering Act, 2002 to the Official Liquidator, due to the company's winding up and lack of available funds, with the ED not objecting to releasing the interest portion. The Court directed compliance subject to NCLT's oversight and the Delhi High Court's stay on related proceedings, without imposing costs.

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Issues:
1. Application under Section 8(7) of the Prevention of Money Laundering Act, 2002 for release of interest and income accrued on attached assets.
2. Functioning of designated Court for PMLA matters.
3. Appointment of Official Liquidator by NCLT for winding up.
4. Objection to the application by ED.
5. Interpretation of Section 8(7) of the PMLA.
6. Provision of expenses to Official Liquidator under Rule 85 of the Companies (Winding up) Rules, 2020.
7. Delhi High Court's stay on proceedings related to the seized amount.

Analysis:
1. The writ petition sought the release of interest and income accrued on assets attached under the Prevention of Money Laundering Act, 2002. The Official Liquidator, representing the petitioner, highlighted the non-functioning of the designated Court for PMLA matters and the NCLT's order to wind up the company, necessitating the release of funds for compliance. The urgency of the situation was emphasized due to the lack of funds for expenditure.

2. The CGC representing the ED had no objection to releasing the interest portion. However, respondents contended that the trial not commencing does not imply the trial cannot be conducted, making the application non-maintainable under Section 8(7) of the PMLA.

3. The advocate for respondents referred to Rule 85 of the Winding Up Rules, stating that the Central Government may provide expenses to the Official Liquidator. The Court considered the submissions and examined the undisputed fact that the company had been wound up by the NCLT.

4. The Court noted that where a company has no available assets, funds can be provided by the Central Government. The ED had seized the company's money, and an affidavit indicated no objection to releasing the interest portion. The Court also considered the Delhi High Court's stay on proceedings related to the seized amount.

5. The petitioner clarified the background of the case before the Delhi High Court, explaining that the stay on proceedings there did not impact the present writ petition. Consequently, the Court directed the ED to release the interest and income accrued on the attached sum of the company to the Official Liquidator, subject to NCLT's superintendence and further orders.

6. The judgment allowed the writ petition, the application under Section 8(7) of the PML Act, and ordered the release of the interest and income accrued on the attached sum to the Official Liquidator, with no costs imposed.

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