Attachment under PMLA can include mortgaged property, while secured creditors may stake claims and seek auction sale under conditions.

Immovable property mortgaged or assigned to a secured creditor before commission of scheduled offences may be attached under the Prevention of Money Laundering Act as part of the "value thereof"; prior mortgage or assignment does not automatically bar ED attachment or confirmation. PMLA, as a special enactment, governs precedence of attachment and confirmation, but secured creditors retain remedial rights within the PMLA scheme: they may stake claims before the Special Judge and seek realization of secured debt including auction sale subject to statutory conditions and undertakings (for example deposit of excess realisation with enforcement authorities).

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Issues: (i) Whether immovable properties mortgaged or assigned to a secured creditor prior to commission of scheduled offences can be attached under the Prevention of Money Laundering Act, 2002 (PMLA); (ii) Whether the remedies available to a secured creditor under the SARFAESI / recovery laws override or preclude attachment and confirmation proceedings under PMLA and what relief a secured creditor is entitled to during PMLA proceedings.

Issue (i): Whether immovable properties mortgaged or assigned to a secured creditor prior to commission of scheduled offences can be attached under PMLA.

Analysis: The Tribunal examined the scope of attachment under PMLA and the fact that properties acquired or mortgaged prior to the scheduled offence may nevertheless be attached as "value thereof" under PMLA. The Tribunal considered the statutory scheme of PMLA permitting attachment and confirmation where the Enforcement Directorate is satisfied on the basis of material on record, and noted that prior mortgage or assignment does not automatically prevent attachment under PMLA. The Tribunal also observed that procedural and remedial avenues remain available to secured creditors within the PMLA framework.

Conclusion: The properties mortgaged or assigned prior to the commission of scheduled offences can be attached under PMLA; the attachment by ED and confirmation are not barred solely on the ground that the property was mortgaged or assigned before the offence.

Issue (ii): Whether remedies available to secured creditors under SARFAESI and related recovery laws have primacy over PMLA proceedings, and what procedural relief a secured creditor may seek.

Analysis: The Tribunal considered the interplay between SARFAESI / recovery statutes and PMLA, including the statutory amendments cited conferring priority to secured creditors for realization of secured debts. The Tribunal held that PMLA is a special enactment and its provisions, including Section 71, govern the precedence of PMLA proceedings. Simultaneously, the Tribunal recognised that secured creditors are not left without remedy: they may stake claims before the Special Judge under the PMLA (referencing section 8(5) to section 8(8)) and may apply under section 8(7) of PMLA for auction sale of mortgaged immovable property subject to conditions and undertakings (for example deposit of excess realisation with ED by way of FDRs).

Conclusion: SARFAESI and recovery rights do not oust PMLA proceedings; PMLA takes precedence as a special Act, but secured creditors retain the right to pursue statutory remedies by staking claims and seeking auction sale under the PMLA scheme, subject to compliance with the conditions specified by PMLA.

Final Conclusion: The appeal is disposed of without setting aside the attachment; ED's attachment and the Adjudicating Authority's confirmation stand, while the secured creditor is granted liberty to pursue its statutory remedies before the Special Judge and to apply under the relevant provisions of PMLA for realization of secured debt including auction sale, subject to the conditions and undertakings prescribed.

Ratio Decidendi: Under the Prevention of Money Laundering Act, 2002, properties mortgaged or assigned prior to the scheduled offence may be attached as value thereof; PMLA, as a special statute, governs precedence of attachment and confirmation, but secured creditors retain statutory remedies and may stake claims or seek auction sale under the PMLA provisions subject to prescribed conditions.

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