Delhi High Court quashes attachment order under Prevention of Money Laundering Act

The Delhi High Court set aside a common order under the Prevention of Money Laundering Act, 2002, which provisionally attached properties of the petitioners. The Court found no justification or material for the attachment, leading to the order and complaint being quashed. Properties mentioned were excluded from attachment, but the Court left open the possibility of a new order if fresh material emerged. Pending applications were disposed of, and the order was to be issued by the Court Master.

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Issues: Impugning a common order under the Prevention of Money Laundering Act, 2002 and provisional attachment of properties; Lack of reasons for attaching properties; Setting aside the order and complaint; Exclusion of properties from the order/complaint; Possibility of passing a fresh order based on new material.

In this judgment by the Delhi High Court, the petitioners challenged a common order dated 9-3-2019 under Section 5 of the Prevention of Money Laundering Act, 2002, which provisionally attached their properties. The order did not provide any reasons or material justifying the attachment of the petitioners' properties as proceeds of crime. The respondent's counsel acknowledged that the order should have been better phrased and reasons for attachment should have been disclosed. The Court observed the lack of material justifying the attachment and set aside the order and the complaint against the petitioners. The properties mentioned in the order and complaint were excluded from the attachment. However, the Court clarified that a fresh order could be passed if new material emerged to establish the assets as proceeds of crime. The pending applications were disposed of, and the order was to be provided under the signatures of the Court Master.

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