Attachment Of Properties In Foreign Jurisdiction Under PMLA

Author:Mr Vijay Pal Dalmia, Partner and Satyam Sharma
Profession:Vaish Associates Advocates
 
FREE EXCERPT

Article by Vijay Pal Dalmia, Advocate, Supreme Court of India and Delhi High Court, Partner & Head of Intellectual Property Laws Division, Vaish Associates Advocates, India

Mobile: +919810081079

By

Attachment of Property under Prevention of Money Laundering Act (hereinafter, PMLA) is covered u/s 5 of the Act. Relevant portion of S. 5 of PMLA has been produced under:

1) Where the Director or any other officer not below the rank of Deputy Director authorized by the Director for the purposes of this section,

has reason to believe (the reason for such belief to be recorded in writing), on the basis of material in his possession, that: a) any person is in possession of any proceeds of crime;

  1. any such proceeds of crime are likely to be

concealed, transferred or dealt with in any manner which may result in frustrating any proceedings relating to confiscation of such proceeds of crime under this Chapter, he may, by order in writing, provisionally attach such property for a period not exceeding one hundred and eighty days from the date of the order, in such manner as may be prescribed:

Provided that no such order of attachment shall be made unless, in relation to the scheduled offence,

a report has been forwarded to a Magistrate under section 173 of the Code of Criminal Procedure, 1973(2 of 1974), or a complaint has been filed by a person authorized to investigate the offence mentioned in that Schedule, before a Magistrate or court for taking cognizance of the scheduled offence, as the case may be, or a similar report or complaint has been made or filed under the corresponding law of any other country: Provided further that, notwithstanding anything contained in first proviso, any property of any person may be attached under this section if the Director or any other officer not below the rank of Deputy Director authorized by him for the purposes of this section

has reason to believe (the reasons for such belief to be recorded in writing), on the basis of material in his possession, that if such property involved in money-laundering is not attached immediately under this Chapter, the non-attachment of the property is likely to frustrate any proceeding under this Act. Provided also that for the purposes of computing the period of one hundred and eighty days, the period during which the proceedings under this section is stayed by the High Court, shall be excluded and a further period not exceeding thirty days from the...

To continue reading

REQUEST YOUR TRIAL