Reasonableness Test for Attaching Non-Proceeds of Crime: Limits on Attaching Pre-existing Property under PMLA

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... KERALA HIGH COURT INTRODUCTION This article analyzes a recent High Court judgment that examined the scope of the Prevention of Money Laundering Act (PMLA) concerning the provisional attachment of properties not directly derived from the alleged proceeds of crime. The core legal question was whether authorities can attach properties acquired before the commission of the scheduled offence under the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... erpretation of proceeds of crime. The court found that the properties that can be attached must be those acquired by utilizing the proceeds of crime. Attaching properties unconnected to the alleged criminal activity would violate the principles of fairness and reasonableness. The purpose of the PMLA is to remove tainted money, not to proceed against unrelated assets. The court distinguished betwee .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e scheduled offence cannot be attached unless they fall under the third limb of Section 2(1)(u) , i.e., equivalent value property held within India when the original proceeds are taken or held outside the country. DOCTRINAL ANALYSIS The judgment clarified the legal principles governing the attachment of properties under the PMLA. It reinforced the doctrine that the PMLA cannot have a retrospective .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X