Enforcement Directorate can invoke powers under Section 8 (4) of the PMLA to take possession of attached property only under exceptional circumstances.

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DID YOU KNOW that the Enforcement Directorate cannot invoke Section 8 (4) of PMLA in a routine manner and take possession of a property whose attachment under the PMLA has been confirmed by the Adjudicating Authority? As per the law laid down by the Supreme Court in the case of Vijay Madanlal Choudhary v. Union of India, 2022 SCC OnLine SC 929, the action of taking possession of attached properties under Section 8 (4) has to be undertaken only in exception circumstances.

DID YOU ALSO KNOW that we successfully obtained interim relief for our client before the Appellate Tribunal under the PMLA in an appeal challenging the confirmation of attachment of properties by the Adjudicating Authority under PMLA. The ED in its notices under Section 8 (4) had failed to demonstrate “exceptional circumstances” that triggers an action under Section 8 (4) of PMLA in our client’s case. The Appellate Tribunal has directed the parties to maintain status quo till the pendency of our client’s appeals which effectively prevents the ED from taking possession of the properties of our client under Section 8 (4).

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