DID YOU KNOW that the disputed and uncrystallized debts owed to person accused of the offence of money laundering is completely outside the scope of the definition of ‘proceeds of crime’ under the PMLA. The ED also does not have the power or authority to issue orders in the nature of Garnishee Proceedings or to determine commercial disputes between two private parties.
DID YOU ALSO KNOW that we successfully represented a client before the Delhi High Court where we challenged a provisional attachment order passed by the ED attaching our client’s properties on the basis that our client owed amounts to the person accused of the offence of money laundering. It was successfully argued by us that unlike other statutes such as Code of Civil Procedure, 1908 and Income Tax Act, 1961, PMLA does not provide for garnishee proceedings to attach the value equivalent of debts allegedly owed by our client to accused persons.