Statutory hearing before attachment confirmation under PMLA is mandatory; absence of notice vitiates the order.

Confirmation of attachment under the Prevention of Money Laundering Act, 2002 cannot be sustained against a person affected by the order unless the statutory opportunity of hearing under Section 8 is first afforded. The Tribunal held that the appellant, though not a noticee before the Adjudicating Authority, could challenge the attachment because its bank accounts were directly affected and the factual questions about control and liability could not be decided without hearing it. The order was therefore vitiated insofar as it concerned the appellant, the attachment was set aside qua the appellant, and the matter was remanded for fresh proceedings from the stage of notice under Section 8(1) after hearing the appellant.

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Issues: Whether the provisional attachment order confirming attachment of the appellant's bank accounts could be sustained when the appellant was not afforded an opportunity of hearing under the Prevention of Money Laundering Act, 2002, and whether the matter required remand.

Analysis: The appellant was not a noticee before the Adjudicating Authority, yet its bank accounts were attached and the attachment was confirmed. The Tribunal noted that, even if the appellant company was ultimately controlled by the Wadhawan group, the issue involved factual questions that could not be determined without hearing the appellant. Section 8 of the Prevention of Money Laundering Act, 2002 requires observance of the hearing process before confirmation of attachment. The Tribunal also treated the appellant's challenge as maintainable and held that the absence of hearing before the Adjudicating Authority vitiated the order insofar as it concerned the appellant.

Conclusion: The attachment order was set aside qua the appellant and the matter was remanded to the Adjudicating Authority from the stage of issuance of notice under Section 8(1) of the Prevention of Money Laundering Act, 2002 for fresh proceedings after hearing the appellant.

Ratio Decidendi: Confirmation of attachment under the Prevention of Money Laundering Act, 2002 cannot be sustained against a person affected by the order unless the statutory opportunity of hearing is afforded before final adjudication.

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