Context

The Adjudicating Authority under the Prevention of Money Laundering Act, 2002 (PMLA) confirmed the attachment of assets worth Rs 751.9 crore belonging to a political party-promoted National Herald newspaper.

Role of the Adjudicating Authority

• Section 5 of the PMLA: It provides for the attachment of any property that is suspected to have been acquired with the proceeds of crime in a case of any offense that is listed in the schedule of the law. 
• Provisional attachment order: It  is valid for a period of 180 days within which the Adjudicating Authority (appointed by the central government) must confirm the attachment, failing which the property is automatically released from attachment.
  • The accused can continue to enjoy the property until the Adjudicating Authority confirms the attachment, after which the ED has the power to claim possession.

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What Happens After the Adjudicating Authority Confirms the Attachment?

• Once ED claims possessions, the property shall remain out of bounds for the owner until the trial is completed.
  • Following final confirmation, in case of a residential property, the ED will ask the owner to vacate the premises along with his belongings, and will take over possession.
• Case  of a conviction:  The trial court may order confiscation of the attached property, and vest the rights to the property with the central government.
• Right to Appeal: The accused can challenge the Adjudicating Authority’s confirmation order at the PMLA’s Appellate Tribunal within 45 days. If the Appellate Tribunal too confirms the order, the accused can file a plea in the High Court, and so on.

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