Mortgaged Properties of Economic Offenders Can be attached under PMLA
In a significant ruling, the Delhi High Court has said that properties mortgaged with banks by economic offenders can be attached by the investigating agencies. The court also clarified that in conflicts between laws such as money laundering, bankruptcy code and other legal provisions, for attaching properties obtained as proceeds of crime, the Prevention of Money Laundering Act (PMLA) will prevail.
In the judgement, the bench of Justice RK Gauba said, “…the assets, which have been the subject matter of attachment in the appeals at hand, are not ‘tainted property’, the same having been seemingly acquired prior to the criminal activity giving rise to accusations of money-laundering. But, they are sought to be attached and subjected to eventual confiscation on account of they being the alternative attachable properties or deemed tainted properties, which is permissible in law.”