The SAFEMA Appellate Tribunal clarifies that properties of alleged abettors cannot be attached under PBPT Act unless proven to be benami properties.
SAFEMA Ruling: Attachment of Abettor's Assets Under PBPT Act
The Appellate Tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA) ruled that assets belonging to an alleged abettor cannot be attached without a clear finding of the properties being benami. Specifically, the Tribunal stated that the PBPT Act allows for the attachment only of properties that are proven to be benami, held by either a benamidar or beneficial owner.
This ruling highlights the stringent requirement for due process in the attachment of assets, underlining the need for substantial proof before any action is taken against individuals alleged to be involved in financial misconduct.
Practitioners should take note of this decision as it underscores the importance of an evidentiary basis when proceeding with actions involving asset attachment under SAFEMA and the PBPT Act.
Citations
- SAFEMA (Year) Volume Page
