Definition
Seizure of property.
Provisional attachment of property involved in money laundering.
Statutory Definition
PMLA 2002.
Etymology & Origin
From the legal concept of 'attachment', meaning the legal process of seizing property to ensure it remains available to satisfy a potential judgment or confiscation order.
Full Legal Analysis
An Attachment Order is a legal directive that freezes a property, prohibiting its transfer, conversion, disposition, or movement. In the context of the Prevention of Money Laundering Act (PMLA), it is a powerful tool used by the Enforcement Directorate (ED) to seize assets suspected to be 'proceeds of crime'.
The ED usually issues a 'Provisional Attachment Order' (PAO) valid for 180 days. During this period, the owner cannot sell or mortgage the property, though they may often continue to occupy it (in the case of residential real estate) until the attachment is confirmed.
For the attachment to become permanent, the ED must file a complaint before the Adjudicating Authority (PMLA) within 30 days, and the Authority must confirm the attachment after hearing the property owner.
While discussing provisional attachment under GST (similar principles apply), the Supreme Court held that the power of attachment is draconian and must be strictly exercised only when there is tangible material to form a 'reason to believe' that revenue is at risk.
Advocates representing clients whose bank accounts or properties are attached must swiftly challenge the PAO before the Adjudicating Authority, demonstrating that the assets were acquired through legitimate, untainted sources.
This Term in Indian Statutes
Prevention of Money Laundering Act, 2002, 2002
"Attachment of property involved in money-laundering."
Provides the ED with the immediate power to freeze assets pending adjudication.
