PMLA attachment cannot survive acquittal in predicate offences and money-laundering charges; attached properties must be released

Attachment under the Prevention of Money Laundering Act could not be continued once the appellants were acquitted in the predicate offences and in the prosecution under the money-laundering charges. Because the acquittals included the case forming the basis of the attachment, the foundation for the restraint on the properties no longer survived. The tribunal accordingly set aside the continued attachment and directed release of the attached properties.

---

---

Issues: Whether the attachment of properties under the Prevention of Money Laundering Act, 2002 could be sustained after the appellants were acquitted in the connected predicate offences and the money-laundering charges.

Analysis: The appeals were supported by the subsequent acquittal orders in the connected criminal cases, including the case arising out of the FIR on which the attachment proceedings were founded. The acquittal was also shown in the prosecution under Sections 3 and 4 of the Prevention of Money Laundering Act, 2002, with a specific direction that the attached properties be released. The respondent did not dispute these acquittals. In that situation, the basis for continuing the attachment no longer survived.

Conclusion: The attachment could not be sustained and the properties were liable to be released; the appeals were allowed in favour of the appellants.

Final Conclusion: The Tribunal granted relief by setting aside the continued attachment and directing release of the attached properties, thereby finally disposing of the appeals and connected applications.

Ratio Decidendi: Where the appellants are acquitted in the predicate offences as well as under the money-laundering charges, the attachment founded on those proceedings cannot be continued and the attached property must be released.

---