Legal Battle Over Property Attachment: Finance Company Wins Right to Challenge PMLA Order While Preserving Secured Creditor Status

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....The AT examined a PMLA provisional attachment order for a flat, finding the property tainted due to loan EMIs paid from proceeds of crime. While validating the attachment, the tribunal recognized the appellant (a housing finance company) as a bona fide secured creditor not involved in criminal activity. The court granted liberty to invoke PMLA Sections 8(7) and 8(8) before the Special Court to seek property restoration, balancing procedural safeguards for third-party rights against proceeds of crime provisions. The PMLA provisions were deemed to override the DCS Act, with the attachment order upheld but providing a mechanism for potential property release.....