Release of property from provisional attachment under money laundering act

This legal guidance explains the remedies available for release of property provisionally attached under the Prevention of Money Laundering Act. It discusses proceedings before the Adjudicating Authority, burden of proving bona fide ownership, evidentiary requirements, and the legal process for establishing that the property is not proceeds of crime.

by Shivendra Pratap Singh | Dec 24, 2024 | Criminal Law

How to release property from provisional attachment under the Prevention of Money Laundering Act? One ECIR has lodged against me by the enforcement department for the offence of money laundering. My property adjacent to my factory has been provisionally attached. I purchased that land partly by taking a loan and partly from the profit of my business. My statement was recorded by the enforcement department under section 50, and I also produce relevant documents in support of fair dealing of that land, but attachment notice is not cancelled or revoked. I have been suffering from heart disease and hypertension. Now my loan has stuck.

Asked from: Maharashtra

To release property from provisional attachment under money laundering act you have to approach the Adjudicating Authority. Your property is being provisionally attached to the presumption that you are a benami owner of the main accused or said property is proceeds of crime or you are not a bonafide purchaser of the said land.

Now the burden of proof lies upon you to prove that you are a genuine owner. According to Section 24 of the Prevention of Money Laundering Act the Authority or Court shall, unless the contrary is proved, presume that such proceeds of crime are involved in money-laundering.

According to section 5 of the Prevention of Money Laundering Act property of only that person shall be attached who has committed offence under the Act or committed any schedule offence. If you have the evidence to prove that you are no way connected with the crime under Money Laundering Act or any schedule offence, then your land shall be released. You have to establish that land is not a proceed of crime.

You said that you had taken loan for purchasing that land and also utilised profit earned from your business. Therefore, you must adduce all relevant documents of loan and books of account to prove that you are a bonafide purchaser. When you successfully rebut the said presumption, the Adjudicating Authority shall cancel the order of provisional attachment and release your property.

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Tags: Attachment | Money Laundering

Shivendra Pratap Singh

Shivendra Pratap Singh

Advocate

Advocate Shivendra, practicing law since 2005, specializes in criminal and matrimonial cases, extensive litigatin experience before the High Court, Sessions court & Family Court. He established kanoonirai.com in 2014 to provide dependable and pragmatic legal support. Over the years, he has successfully assisted thousands of clients, making the platform a trusted resource for criminal and matrimonial dispute resolution in India.

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