Provisional attachment under PMLA can reach equivalent-value property, even if acquired before the check-period, when proceeds of crime are not traceable.

Provisional attachment under the Prevention of Money Laundering Act, 2002 may extend to property of equivalent value when the actual proceeds of crime are not traceable, even if the attached asset was acquired before the check-period or before the scheduled offence. The Tribunal distinguished the check-period used for disproportionate assets analysis under the Prevention of Corruption Act, 1988 from the scope of attachment under PMLA, and relied on the wide definition of "proceeds of crime" in Section 2(1)(u). On that basis, it held that earlier-acquired immovable properties could be attached to secure the alleged proceeds till trial concluded.

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Issues: Whether properties acquired before the check-period or before the commission of the scheduled offence could be provisionally attached as equivalent value property under the Prevention of Money Laundering Act, 2002.

Analysis: The attachment was challenged only in relation to two immovable properties acquired prior to the check-period. The Tribunal held that the check-period used for determining disproportionate assets under the Prevention of Corruption Act, 1988 was not determinative of the scope of provisional attachment under the Prevention of Money Laundering Act, 2002. Relying on the wide definition of "proceeds of crime" under Section 2(1)(u) of the Prevention of Money Laundering Act, 2002 and the distinction between tainted property and property of equivalent value, it held that where the actual proceeds of crime are not available, the enforcement agency may attach other property of equivalent value, even if such property was acquired earlier, so long as the attachment is to secure the alleged proceeds till trial conclusion.

Conclusion: The challenge to provisional attachment of the two properties failed, and the attachment was upheld in favour of the Revenue.

Ratio Decidendi: Under Section 2(1)(u) of the Prevention of Money Laundering Act, 2002, provisional attachment is not confined to property directly or indirectly derived from the scheduled offence and may extend to property of equivalent value when the proceeds of crime are not traceable.

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