SAFEMA Tribunal upholds PMLA attachment without physical possession, protecting occupancy rights until trial concludes.
SAFEMA Permits PMLA Attachment Without Dispossession
The SAFEMA Tribunal has ruled that attachment under the Prevention of Money Laundering Act (PMLA) does not necessarily require taking physical possession of assets during trial. In the case involving Sajab Infratech, the Tribunal protected the current occupants’ possession while upholding the attachment.
The order prohibits transfer, encumbrance, or alienation of the property and mandates that rental income, if any, be deposited in fixed deposits in a designated bank. It preserves the asset's value while respecting lawful tenancy or occupancy rights.
This decision provides clarity for property owners and tenants facing PMLA attachments: the Enforcement Directorate may not summarily dispossess individuals without a specific order. Courts retain oversight, and dispossession must be justified by risk of dissipation.
