Interim relief for attached property: sale of movable assets permitted under PMLA rules with ED supervision; immovable sale refused.

Application sought permission to sell properties attached under the Prevention of Money Laundering Act pending appeal; movable property sale allowed under the Prevention of Money Laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority) Rules, 2013 Rule 4 subject to Enforcement Directorate supervision and deposit of proceeds in a bank account under ED lien pending final adjudication, while permission to sell immovable property refused under Rule 5 except that possession may be handed to the Enforcement Directorate for maintenance if the liquidator cannot preserve the assets.

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Issues: Whether interim relief should be granted to permit sale of properties attached under the Prevention of Money Laundering Act, 2002 pending appeal, specifically (i) permission to sell movable property (motor vehicles) and (ii) permission to sell immovable property.

Analysis: The interim application seeks permission to sell attached motor vehicles and immovable properties pending appeal and to deposit sale proceeds in a bank account kept under lien of the Enforcement Directorate. Interim relief that would effectually grant final relief is not permissible. The provisions of the Prevention of Money Laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority) Rules, 2013 govern release of attached property; Rule 4 permits release of movable property subject to conditions, while Rule 5 restricts release of immovable property except in limited circumstances such as joint ownership. The competing considerations include deterioration in condition of motor vehicles if sale is delayed, and the respondent's concern that permitting sale of immovable property may render the appeal infructuous or fail to secure proper value. The appropriate interim order must balance preventing irretrievable prejudice to realisable value of movable assets against the prohibition on granting final relief by interim orders and the statutory restrictions on release of immovable property.

Conclusion: Interim permission is granted to sell/auction the attached motor vehicles in accordance with Rule 4 of the Rules of 2013, with the Enforcement Directorate permitted to supervise the sale; sale proceeds shall be deposited in a bank account subject to the lien of the Enforcement Directorate and released only after final adjudication. Interim permission to sell immovable property is refused; if the liquidator cannot maintain immovable properties, possession may be handed over to the Enforcement Directorate for maintenance.

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