Property Attachment Order Under PMLA Quashed for Exceeding Statutory 180-Day Limitation Period Despite COVID-19 Extensions

HC allowed writ petition challenging PMLA property attachment order. Court found the order was passed beyond 180-day statutory limitation and deemed the adjudicating authority's justification based on COVID-19 limitation extensions invalid. HC issued notice, granted stay of the impugned order, and directed respondents to file counter-affidavits, indicating potential procedural irregularity in the attachment proceedings.

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The Telangana High Court, before Chief Justice Ujjal Bhuyan and Justice C.V. Bhaskar Reddy, addressed a writ petition challenging the order dated 25.05.2022 by the adjudicating authority under the Prevention of Money Laundering Act, 2002 (PMLA). The impugned order confirmed attachment of petitioners' property under Section 5(1) of the PMLA Act and directed continuance of attachment during proceedings before the Special Court. However, the order was passed beyond the 180-day limitation prescribed under Section 8(3) of the PMLA Act.The adjudicating authority justified the delay by relying on Supreme Court suo motu orders extending limitation periods due to the COVID-19 pandemic. The High Court examined precedents including Gobindo Das v. Union of India and M/s. Vikas WSP Ltd. v. Enforcement Directorate, where it was held that such Supreme Court extensions were intended to aid litigants and lawyers and could not be invoked by adjudicating authorities, which are neither litigants nor advocates.The Court took a prima facie view that the order dated 25.05.2022 was beyond limitation and thus "rendered functus officio." Consequently, the Court issued notice, granted stay of the impugned order, and directed respondents to file counter-affidavits. The matter was listed for further hearing on 27.10.2022.

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