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.

Enroll now for UPSC Online Course

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.