TaxTMI 
TaxTMI 
2023 (3) TMI 132
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....pondent Nos.1 to 29/writ petitioners. 2. This appeal is directed against the order dated 22.12.2022 passed by the learned Single Judge in Writ Petition No.45443 of 2022 filed by respondent Nos.1 to 29. 3. Respondent Nos.1 to 29 are facing proceedings under the Prevention of Money Laundering Act, 2002 (briefly referred to hereinafter as 'PMLA'). Various properties of respondent Nos.1 to 29 have been provisionally attached under Section 5(1) of PMLA on the ground that they are proceeds of crime. In the meanwhile, show cause notices under Sub-Section (1) of Section 8 of PMLA have been issued to Respondent Nos.1 to 29. 4. It was at that stage that respondent Nos.1 to 29 filed the related writ petition seeking extension of time for prep....
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....s that every order of attachment made under Sub-Section (1) shall cease to have effect after the expiry of the period specified in that Sub-Section or on the date of an order made under Sub-Section (3) of Section 8 whichever is earlier. That apart, this order of the learned Single Judge is now been cited in different High Courts for extension of time causing prejudice to the Enforcement Directorate in proceeding with matters under the PMLA. Therefore, the order of the learned Single Judge is liable to be suitably interfered with by the Division Bench. 7. On the other hand, Mr. Avinash Desai, learned Senior Counsel for respondent Nos.1 to 29/writ petitioners submits that as observed by the learned Single Judge, no prejudice is caused to t....
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....d of 180 days, the period during which proceedings under Section 5 is stayed by the High Court shall be excluded and a further period not exceeding 30 days from the date of order of vacation of such stay order shall be counted. 9.1. Sub-Section (3) of Section 5 says that every order of attachment made under Sub-Section (1) shall cease to have effect after the expiry of the period specified in that Sub-Section i.e., 180 days or on the date of an order made under Sub-Section (3) of Section 8, whichever is earlier. 9.2. As per the mandate of Sub-Section (5), the Director or any other officer who has provisionally attached the property under Sub-Section (1) of Section 5 shall, within a period of thirty days from such attachment, file a co....
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....ey-laundering, he shall pass an order in writing confirming the attachment of property made under Sub-Section (1) of Section 5 etc. However, such confirmation of attachment shall continue for a period not exceeding 365 days or during the pendency of proceedings under the PMLA. 11. From a conjoint reading of relevant provisions of Sections 5 and 8 of PMLA, it is seen that there is no such time limit statutorily prescribed for submission of reply to the show cause notice issued under Sub-Section (1) of Section 8 of PMLA though it has to be borne in mind that under Sub- Section (3) of Section 5 every order of attachment made under Sub-Section (1) of Section 5 which is the subject matter of proceedings under Section 8 shall cease to have eff....