Madras HC
Madras HCDT file photo

PMLA case: ED can’t attach properties at will, says MHC

The court passed the orders on allowing a petition filed by M Muruganandam. The petitioner prayed to quash ED’s notice and reminder dated May 2 and 25, 2018, issued to the Vembakkam and Dusi Sub-Registrars in Tiruvannamalai district.

CHENNAI: The Madras High Court held that in a Prevention of Money Laundering Act (PMLA) case, the Enforcement Directorate (ED) has no power to attach property straight away issuing a communication to the sub-registrar asking him not to register that particular property.

“ED cannot by way of a communication to the Sub-Registrar encumber and attach the properties of the petitioner and thereafter completely forget about it,” the bench comprising Justice PN Prakash and Justice N Anand Venkatesh held.

The court passed the orders on allowing a petition filed by M Muruganandam. The petitioner prayed to quash ED’s notice and reminder dated May 2 and 25, 2018, issued to the Vembakkam and Dusi Sub-Registrars in Tiruvannamalai district. ED asked the authorities not to allow any transactions in respect of the properties of the petitioner. The ED cited that it has registered ECIR against the petitioner under the PMLA arising out of an FIR filed by Central Crime Branch (CCB) Chennai.

“The power of the ED to issue a provisional order of attachment flows from Section 5 of the PMLA and the same has to be confirmed by the adjudicating authority within 180 days thereafter,” Justice Prakash wrote.

Visit news.dtnext.in to explore our interactive epaper!

Download the DT Next app for more exciting features!

Click here for iOS

Click here for Android

Related Stories

No stories found.
logo
DT next
www.dtnext.in