SAFEMA Tribunal upholds PMLA attachment of Ooty land, finding prima facie link to illicit funds despite independent income claims.
Independent Income Claim Rejected in PMLA Attachment Case
The SAFEMA Tribunal has upheld the Enforcement Directorate’s attachment of a property in Ooty worth ₹6.97 crore, rejecting arguments that the purchase was funded by independent income and voluntary tax disclosures. The ED established a prima facie nexus between the funds and illegal proceeds from a housing project.
The respondent claimed the amount came from ancestral savings and disclosed income under the Income Declaration Scheme. However, the Tribunal held that disclosure under tax amnesty schemes does not immunize assets from PMLA scrutiny if the underlying source is traceable to predicate offences.
"Voluntary tax disclosure does not amount to a clean chit under PMLA; the ED must still investigate the original source."
This decision reinforces the ED's investigative authority even post-disclosure. For tax and PMLA practitioners, it underlines that compliance in one domain (tax) does not preclude action in another (money laundering). Proper source-of-wealth documentation is essential to defend high-value acquisitions.
