The AT analyzed the legal status of investments/acquisitions ...

Legal Scrutiny of Pre-Criminal Period Investments Reveals Potential Liability for Proceeds of Crime Under Money Laundering Provisions

May 3, 2025

Case Laws     Money Laundering     AT

The AT analyzed the legal status of investments/acquisitions made prior to an alleged criminal period, determining that properties purchased before the specified date may still be subject to enforcement action under money laundering provisions. The tribunal established that properties can be attached if the accused maintained an interest during the proscribed criminal activity, even if acquired earlier. Despite attempts at amicable settlement and potential quashing of specific FIRs, the tribunal rejected the appellant's claims, emphasizing the broader context of multiple pending criminal cases involving serious non-compoundable offences. The attachment under PMLA was upheld, with the tribunal concluding that settlement of limited cases does not negate potential liability for proceeds of crime. Appeal was consequently dismissed.

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