SAFEMA Tribunal allows PMLA attachment without physical possession, protects occupancy rights, and mandates rental deposits during trial.
SAFEMA Permits PMLA Attachment Without Physical Possession
The SAFEMA Tribunal has ruled that PMLA attachment of properties—specifically those belonging to Sajab Infratech—can legally continue without physical seizure, allowing occupants to remain in possession during trial. The order restricts any transfer, creation of encumbrances, and directs rental income to be deposited in fixed deposits.
The Tribunal observed that Section 5(4) of the PMLA does not mandate physical possession post-attachment. It balances investigative needs with property rights, ensuring assets remain preserved without causing undue hardship to bona fide occupants. Oversight is retained through mandatory reporting and financial control mechanisms.
"Attachment under PMLA serves to preserve assets for potential confiscation, not necessarily to dispossess immediately."
This decision provides clarity on procedural aspects of asset control. For practitioners, it offers a framework to argue against disruptive possession orders in ongoing trials. The ruling may encourage similar arrangements where asset utility (e.g., rental income) can be harnessed without compromising investigative integrity.
