Under the Prevention of Money Laundering Act, 2002 (PMLA), the Enforcement Directorate (ED) can provisionally attach property it believes is connected with money laundering. This guide explains how such an order can be challenged.

How an attachment reaches the Tribunal

  1. Provisional attachment. An officer of the ED passes an order attaching property for a limited period.
  2. Complaint to the Adjudicating Authority. The ED files an application before the Adjudicating Authority, which issues a notice to you asking why the attachment should not be confirmed.
  3. Your reply and hearing. You file your reply with documents, such as proof of the source of funds and how the property was acquired, and are heard.
  4. Order. The Adjudicating Authority decides whether to confirm the attachment.

Who can appeal to the Appellate Tribunal?

Any person aggrieved by an order of the Adjudicating Authority can appeal to the Appellate Tribunal under the PMLA. The Director of the ED can also appeal where the order goes against the department.

The time limit

An appeal to the Appellate Tribunal must generally be filed within 45 days of receiving the order. The Tribunal can admit a late appeal if you show sufficient cause, but the safest course is to file well within the period.

What the appeal should cover

  • Whether the property is actually connected with the alleged offence
  • The source of funds used to acquire it, with documents
  • Procedural errors, such as defects in the attachment order or in the notice
  • Whether the required steps were followed within the periods fixed by the Act

Further appeals

A further appeal to the High Court lies from the Tribunal's decision on a question of law, generally within 60 days. See appeals to the High Court in tax matters for how High Court appeals are approached. The Supreme Court can be approached in the manner the law allows.

Criminal proceedings under the PMLA, such as bail and trial, are separate from an appeal against an attachment order and are dealt with by the courts. Please speak to us early so that we can explain what each proceeding involves.

Frequently Asked Questions

What is the time limit for a PMLA appeal?

Generally 45 days from receiving the order of the Adjudicating Authority. A late appeal may be admitted for sufficient cause.

Does a provisional attachment mean I lose the property?

No. It restricts dealing with the property for a limited period while the matter is examined. It matters if the Adjudicating Authority confirms it, and you can then appeal.

Can I sell or use the attached property?

Not while the attachment is in force, although you can usually continue to use property you already live in or operate, depending on the order. Check the order and ask us if unsure.

This page is general information and not legal advice. Time limits, forms and fees change, and the law that applies depends on your facts and the year involved. Please contact us so we can check the current position for your case.