Can Properties Acquired Before the Crime Be Attached as “Proceeds of Crime” under PMLA?
By Abhishek Jat, Advocate Introduction The Prevention of Money Laundering Act, 2002 (PMLA) is a robust legislative framework designed to combat the menace of money laundering in India. A recurring legal conundrum under the Act is whether properties acquired prior to the commission of the scheduled offence can be attached as "proceeds of crime," especially when the actual tainted property is unavailable. The recent decision of the Appellate Tribunal under SAFEMA in Sadananda Nayak v. Deputy Director, Directorate of Enforcement, Bhubaneswar (FPA-PMLA-5612/BBS/2023, decided 14.10.2024) has provided significant clarity on this issue. Factual Matrix Appellant: Shri Sadananda Nayak, a sub-contractor with Hindustan Aeronautics Limited (HAL), Sunabeda, Odisha, for nearly 40 years. Allegations: In 2017, the then Finance Manager of HAL, Mr. Bhaben Maitra, allegedly credited substantial sums to the appellant’s account without consent. Under threat and intimidation, Mr. Nayak withdrew...