High Court orders status quo on assets attached by Adjudicating Authority, clarifies jurisdiction under Prevention of Money Laundering Act.

The High Court ordered that the Petitioners maintain status quo on assets attached by the Adjudicating Authority until the resolution of a related case. Proceedings before the Authority were stayed pending the outcome of the other case, with parties allowed to seek redressal based on that decision. The Court clarified the Authority's jurisdiction under the Prevention of Money Laundering Act after the 180-day period, emphasizing asset status quo and further redressal options based on the related case's decision.

---

---

Issues:
1. Interpretation of Sections 5 and 8 of the Prevention of Money Laundering Act, 2002 regarding the Adjudicating Authority's jurisdiction after the expiration of the mandatory 180-day period.

Analysis:
The High Court considered the question of whether the Adjudicating Authority could proceed under Sections 5 and 8 of the Prevention of Money Laundering Act, 2002 after the lapse of the mandatory 180-day period. The counsel for the Respondents referred to a previous order in LPA 362/2020, where the Adjudicating Authority was directed not to proceed further due to the pendency of the LPA before the Court. Both parties agreed that the legal issues in the present case were similar to those in the aforementioned LPA.

The Court ordered that the Petitioners must maintain status quo regarding the moveable and immovable assets attached by the Adjudicating Authority until the decision in LPA 362/2020. Consequently, the proceedings before the Adjudicating Authority were stayed until the resolution of LPA 362/2020. If the LPA is decided before the next hearing date, the parties are allowed to approach the Court through an application. The applications for stay, i.e., CM APPL.5849/2021 and CM APPL.5858/2021, were disposed of, and the case was listed for further hearing on 15th July, 2021.

In conclusion, the High Court's judgment provided clarity on the Adjudicating Authority's jurisdiction under the Prevention of Money Laundering Act, 2002 after the expiration of the statutory 180-day period. The Court emphasized the importance of maintaining status quo on the attached assets pending the outcome of related legal proceedings and ensured that the parties could seek further redressal based on the decision in the pending LPA.

---