SAFEMA allows PMLA attachment to continue without physical possession; transfer barred, rentals to FDs.
PMLA Attachment Without Possession: SAFEMA
The SAFEMA Tribunal has upheld the attachment of assets of Sajab Infratech under the Prevention of Money Laundering Act, 2002, while allowing continued possession by the legitimate occupiers. The order restrains any transfer, lease or charge without prior approval.
The Tribunal directed that rental income from the attached properties be deposited in fixed deposits to preserve value during trial. This ensures asset protection under Section 5(1) of PMLA while preventing hardship to bona fide occupants.
The judgement balances enforcement with equity. Practitioners should argue for custodial management in similar cases and ensure rental protection mechanisms in attachment proceedings.
Citations
- PMLA, 2002, Section 5(1)
