Equivalent-value attachment under PMLA can cover pre-offence property when proceeds of crime are unavailable.

Property acquired before the check-period and before the alleged scheduled offence may still be provisionally attached as equivalent-value property under the Prevention of Money Laundering Act, 2002, where the original proceeds of crime are not traceable. The Tribunal read the definition of "proceeds of crime" as extending beyond property directly or indirectly derived from the offence to include other property of equivalent value when the tainted assets are unavailable. It also held that the check-period used for determining disproportionate assets does not bar attachment under the second limb of the definition, and upheld the attachment on the basis of the value of the proceeds of crime and the overall asset position.

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Issues: Whether properties acquired prior to the check-period and before the alleged 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 examined in the context of the definition of "proceeds of crime" and the object of the statute. The Tribunal held that the definition is not confined to tainted property directly or indirectly derived from the scheduled offence, but also extends to the value of such property where the original proceeds are not available. On that footing, if the proceeds of crime are not traceable, attachment of other property of equivalent value is permissible. The Tribunal further held that the distinction between the check-period for determining disproportionate assets and the period relevant for provisional attachment does not prevent attachment under the second limb of the definition, and that the impugned attachment was supported by the value of the proceeds of crime and the overall asset position.

Conclusion: The challenge to attachment of the two properties acquired before the check-period was rejected; such properties could validly be attached as equivalent-value property.

Ratio Decidendi: Under Section 2(1)(u) of the Prevention of Money Laundering Act, 2002, where the proceeds of crime are unavailable, attachment may extend to other property of equivalent value even if it was acquired prior to the commission of the scheduled offence, provided the statutory conditions are satisfied.

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