Equivalent-value attachment under PMLA can extend to pre-offence property when tainted assets are untraceable.

Property acquired before the scheduled offence may still be attached under the Prevention of Money Laundering Act, 2002 as equivalent value of proceeds of crime when the tainted property is not traceable. The tribunal read "proceeds of crime" as covering both property derived from criminal activity and its value, so attachment is not limited to physically identifiable tainted assets. Where the proceeds have been siphoned off, vanished, or are otherwise unavailable, attachment of other property of equivalent value is permitted to preserve the scheme against money laundering and avoid making the equivalent-value limb redundant.

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Issues: Whether property acquired prior to the commission of the scheduled offence can be attached under the Prevention of Money Laundering Act, 2002 as equivalent value of proceeds of crime when the tainted property is not traceable.

Analysis: The definition of proceeds of crime was treated as comprising multiple limbs, including not only property derived or obtained directly or indirectly from criminal activity relating to a scheduled offence, but also the value of such property. On that construction, attachment is not confined to property physically traceable as tainted property. Where the proceeds generated from the offence have been siphoned off, vanished, or are otherwise unavailable, the statute permits attachment of other property of equivalent value, even if such property was acquired before the offence. This interpretation was held necessary to preserve the efficacy of the scheme against money laundering and to avoid rendering the equivalent-value limb redundant.

Conclusion: Property acquired prior to the commission of the offence can be attached as equivalent value under the Act when the actual proceeds of crime are not traceable. The appellants' challenge failed.

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