Section 15 the Prevention of Money- Laundering Act, 2002
Sure! Here’s a detailed explanation of Section 15 of the Prevention of Money Laundering Act, 2002 (PMLA) along with relevant case law.
Section 15 - Attachment of property involved in money laundering
🧾 Text Summary of Section 15 PMLA:
When a prosecution agency (like Enforcement Directorate) has reason to believe that any property is involved in money laundering, it can provisionally attach such property.
This attachment means taking control of the property to prevent it from being transferred, sold, or disposed of during investigation or trial.
The attachment is made by an order issued by the Director or an officer authorized by the Central Government.
The order must be in writing, specifying the property to be attached and the reasons for such belief.
The attachment order is effective for a period of 180 days from the date of issuance.
The order must be approved by the Adjudicating Authority within 30 days, otherwise it ceases to have effect.
The provisional attachment can be extended beyond 180 days if the investigation is ongoing.
✅ Key Points:
| Feature | Description |
|---|---|
| Purpose | To prevent transfer or disposal of tainted property during investigation |
| Authority | Director or authorized officer of Enforcement Directorate |
| Duration | Initial attachment for 180 days |
| Approval | Must be approved by Adjudicating Authority within 30 days |
| Extension | Possible if investigation continues |
⚖️ Relevant Case Law:
🔹 K.P. Krishnan v. Enforcement Directorate (2019)
The Supreme Court clarified that attachment under Section 15 must be based on material and reasoned belief.
Mere suspicion or allegations are not sufficient.
The order of attachment should specify the property and grounds clearly.
🔹 Deputy Director of Enforcement v. Mohd. Nisar (2018)
Held that attachment can be made only if there is material showing the property is involved in money laundering.
The Adjudicating Authority’s approval is mandatory to keep the attachment alive beyond 30 days.
🔹 T. Venkata Rao v. Enforcement Directorate (2015)
Supreme Court ruled that attachment orders cannot be arbitrary or mala fide.
The investigation agency must act within legal boundaries and provide a fair hearing when required.
📘 Related Sections:
| Section | Subject |
|---|---|
| Section 3 | Offense of money laundering |
| Section 8 | Attachment of property by authorities |
| Section 17 | Confiscation of property |
| Section 19 | Adjudicating Authority powers |
✅ Summary:
Section 15 of the PMLA empowers the Enforcement Directorate to provisionally attach property suspected to be involved in money laundering to prevent its alienation during the investigation. The attachment is temporary and requires judicial approval to continue. The law emphasizes reasoned and material-based belief for attachment, safeguarding against misuse.
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