The Calcutta High Court invalidated an attachment order under the PMLA, stressing the necessity for procedural safeguards including a stringent 'reason to believe' standard.
Calcutta HC Strikes Down PMLA Attachment Order
The Calcutta High Court has quashed an attachment order under the Prevention of Money Laundering Act (PMLA), asserting that mandatory procedural safeguards outlined in Section 107 must be adhered to. Notably, the Court emphasized the requirement for a legitimate 'reason to believe' before an attachment can be instituted.
The Court found that the requisite procedural standards, which include prior notice and adequate opportunity to be heard, were flouted. This ruling reinforces the critical nature of procedural due process in the enforcement of PMLA provisions, impacting how authorities approach future attachment orders.
For legal practitioners, this decision highlights the importance of ensuring that authorities comply with the established procedural framework. The case could serve as a crucial reference point for challenges against wrongful or arbitrary action under the PMLA, providing a pathway for affected parties to contest unjust attachment orders.
Citations
- Calcutta HC Order 2026
