Attachment under PMLA: tribunal refused interim return of funds to avoid dissipation and preserve appeal outcome.

Interim relief seeking return of funds during appeals was refused because permitting release would risk dissipation and defeat the attachment object under the Prevention of Money Laundering Act; the impugned sum was not identifiable as specific attached property and granting interim relief would amount to final relief at an interlocutory stage, risking frustration of the Directorate's cross-appeal. The Tribunal applied balance of convenience and irreparable harm reasoning, dismissed the interim application, and directed expeditious consolidation and hearing of connected matters to protect both parties' interests.

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Issues: Whether the interim application seeking immediate return of INR 1,54,15,300/- and related interim reliefs during the pendency of appeals should be granted.

Analysis: The re-quantification order of the Adjudicating Authority dated 11.03.2025 is under challenge by the Directorate in a cross-appeal pending before this Tribunal; allowing the interim application would risk dissipation of funds and frustrate the object of attachment under Section 5 of the Prevention of Money Laundering Act, 2002 which ensures availability of proceeds of crime for confiscation. The impugned sum is not traceable as specific, identifiable attached properties; the factual matrix differs from cases where specific immovable properties were not confirmed and could be released. Granting the relief sought would amount to granting final relief at an interlocutory stage and could render the Directorate's pending appeal infructuous. On balance of convenience and to prevent irreparable loss to the respondent, the interim relief is inappropriate pending final adjudication of the appeals. The Tribunal directed expeditious consolidation and hearing of connected matters to protect the interests of both parties.

Conclusion: Interim application dismissed; relief refused and the application stands dismissed in favour of the Respondent.

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