Seized Property Under Money Laundering Case Must Be Returned If...: Court

In the absence of any proceedings in relation to the seized property, the court directed the authorities to return the same to the petitioner.

Property seized by the Enforcement Directorate (ED) under the Prevention of Money-laundering Act (PMLA) must be returned if the investigation does not result in any proceedings within 365 days, the Delhi High Court has held.

In an order passed earlier this week, Justice Navin Chawla said the continuation of a seizure beyond 365 days, in the absence of the pendency of any proceedings relating to any offence before a court, shall be confiscatory in nature and without the authority of law and, thus, violative of Article 300A of the Constitution.

The court's decision came on a petition filed by the resolution professional of Bhushan Power and Steel Limited (BPSL) against the continued seizure of various documents, records, digital devices and gold and diamond jewellery that have an aggregate value of more than Rs 85 lakh from his premises pursuant to a money-laundering case.