Skip to content

Corporate and Economic Laws · Laws and Regulations related to Anti-Money Laundering

Scheduled Offences, Attachment and Adjudication under PMLA

Updated 11 October 2026 · Fact-checked

A scheduled offence is a crime listed in the Schedule to the PMLA, 2002, whose proceeds can lead to a money-laundering case. Under Section 5, an authorised officer (Deputy Director or above) can provisionally attach property for up to 180 days, then must file a complaint with the Adjudicating Authority within 30 days. The Adjudicating Authority decides if the attachment stands.

Understand Scheduled Offences, Attachment and Adjudication

The PMLA does not punish every crime. It targets the laundering of money that comes from certain listed crimes. These listed crimes are the scheduled offences, set out in the Schedule to the Act. The money or property derived from a scheduled offence is called proceeds of crime. Without a scheduled offence, there are no proceeds of crime in the PMLA sense.

Attachment is the tool that stops the property from disappearing. It freezes the property so that it cannot be sold, hidden or moved before the case is decided. It is a temporary, protective step. It is not a final loss of ownership.

Under Section 5(1), the Director, or an officer not below the rank of Deputy Director authorised by the Director, must have reason to believe, recorded in writing and based on material in his possession, that two things are true. First, a person is in possession of proceeds of crime. Second, those proceeds are likely to be concealed, transferred or dealt with in a way that may frustrate confiscation proceedings. Then he may, by written order, provisionally attach the property for a period not exceeding 180 days from the date of the order.

There is a safeguard in the first proviso. Normally, no attachment order can be made unless, for the scheduled offence, a report has been forwarded to a Magistrate under Section 173 of the CrPC, or a complaint has been filed before a Magistrate or court for taking cognizance, or a similar report or complaint has been made under the corresponding law of another country. The second proviso is an exception: if the officer has reason to believe, recorded in writing, that non-attachment is likely to frustrate any proceeding under the Act, property may be attached immediately.

After attachment, the officer must send a copy of the order and the material to the Adjudicating Authority in a sealed envelope, immediately. Within 30 days of attachment he must file a complaint before the Adjudicating Authority stating the facts. The Adjudicating Authority then examines whether the attachment should continue and, under Section 8, decides on confirmation. Confiscation is the later, final step. Attachment only holds the property; confiscation takes it to the Central Government. An appeal against the Adjudicating Authority's orders lies to the Appellate Tribunal.

Key rules to remember

Who can attach (Section 5(1))
Director, or officer not below Deputy Director authorised by the Director
Reason to believe must be recorded in writing and based on material in his possession.
Two conditions for provisional attachment
(a) person possesses proceeds of crime AND (b) likely to be concealed, transferred or dealt with so as to frustrate confiscation proceedings
Both conditions must be met.
Duration of provisional attachment
Not exceeding 180 days from the date of the order
Days when a High Court stay is in force are excluded, and a further period not exceeding 30 days from the order vacating the stay is counted.
First proviso: pre-condition
Report to Magistrate under Section 173 CrPC, or complaint before Magistrate or court for cognizance of the scheduled offence, or similar report or complaint under a foreign corresponding law
Required before an attachment order, subject to the second proviso.
Second proviso: urgent attachment
Attachment allowed notwithstanding first proviso if non-attachment is likely to frustrate any proceeding under the Act
Reasons must be recorded in writing.
Procedure after attachment (Section 5(2) and 5(5))
Copy of order and material to Adjudicating Authority in sealed envelope immediately; complaint to Adjudicating Authority within 30 days of attachment
Do not mix up the immediate forwarding with the 30-day complaint.
Cessation of attachment (Section 5(3))
Order ceases on expiry of the period in Section 5(1) or on the date of an order under Section 8(3), whichever is earlier
Attachment is temporary.
Enjoyment of immovable property (Section 5(4))
Person interested in enjoyment of attached immovable property is not prevented from such enjoyment
Person interested includes all persons claiming or entitled to claim any interest in the property.
Foreign property (Section 60(1))
Special Court, on application by Director or Administrator, may issue a letter of request to a court or authority in a contracting State
Applies where property under a Section 5 attachment is suspected to be in a contracting State.

How to solve Scheduled Offences, Attachment and Adjudication questions

Use this order for any question on scheduled offences, attachment or adjudication. It keeps you in the sequence the Act follows.

  1. 1Identify the scheduled offence. Check whether the underlying crime is one listed in the Schedule. If not, say that proceeds of crime in the PMLA sense do not arise.
  2. 2Identify the property and the person in possession. Link the property to proceeds of crime.
  3. 3Check who is acting. The officer must be the Director or an authorised officer not below Deputy Director.
  4. 4Test the two conditions of Section 5(1): possession of proceeds of crime and likelihood of concealment or transfer that may frustrate confiscation. Note that reasons must be recorded in writing.
  5. 5Check the pre-condition in the first proviso (Magistrate report or complaint). Then see if the second proviso for urgent attachment applies.
  6. 6Apply the time limits: attachment up to 180 days, with the High Court stay rule, and a complaint to the Adjudicating Authority within 30 days.
  7. 7State the next steps: sealed-envelope forwarding, adjudication, and appeal to the Appellate Tribunal. Distinguish attachment from confiscation.
  8. 8Write a clear conclusion on whether the attachment is valid and what the affected person can do.

Quickest way: Four-check test for a valid attachment

When to use it: Use this for MCQs and short case questions where you must decide fast whether an attachment order is valid.

  1. Who: Director or officer not below Deputy Director, authorised?
  2. Why: written reasons, proceeds of crime in possession, risk of frustration?
  3. Pre-condition: Magistrate report or complaint made, or urgent second proviso applies?
  4. Time: order up to 180 days; complaint to Adjudicating Authority within 30 days; copy forwarded immediately in a sealed envelope.

Common mistakes in Scheduled Offences, Attachment and Adjudication

  • Treating attachment as confiscation.

    Both take property out of the owner's hands in practice.

    Fix: Remember attachment is provisional and ceases after 180 days or earlier on a Section 8(3) order. Confiscation is the final vesting in the Central Government.

  • Saying any police officer or Inspector can attach property.

    Students confuse attachment with search and seizure powers.

    Fix: Under Section 5(1), only the Director or an authorised officer not below Deputy Director can attach.

  • Mixing up the 180-day and 30-day periods.

    Both periods start from the attachment and sound similar.

    Fix: 180 days is the maximum life of the order. 30 days is the deadline to file the complaint with the Adjudicating Authority.

  • Ignoring the first proviso and saying attachment can start on mere suspicion.

    Students remember only the reason-to-believe condition.

    Fix: State that a Magistrate report or complaint on the scheduled offence is normally needed, and mention the second proviso as the exception.

  • Saying the owner must vacate attached immovable property.

    Attachment is assumed to mean loss of possession.

    Fix: Section 5(4) says the person interested is not prevented from enjoying attached immovable property.

  • Treating the Adjudicating Authority as a criminal court.

    The word adjudication sounds like a trial.

    Fix: The Adjudicating Authority examines the attachment and related property issues. Criminal trial for the offence is before the Special Court.

Worked examples

Example 1

An Assistant Director in the Enforcement Directorate, not authorised under Section 5, orders provisional attachment of a flat owned by Mr. Rajesh Menon, which he suspects was bought with bribe money. Is the order valid? Comment.

Show the solution
  1. Section 5(1) allows attachment only by the Director or an officer not below the rank of Deputy Director authorised by the Director.
  2. An Assistant Director is below Deputy Director in rank, and no authorisation can cure that rank requirement.
  3. Even otherwise, the officer must record in writing his reason to believe, based on material, that proceeds of crime are in possession and are likely to be dealt with so as to frustrate confiscation.
  4. Also, the first proviso requires a Magistrate report or complaint on the scheduled offence, unless the second proviso applies.

Answer: The order is not valid, because the officer is below the rank of Deputy Director and so is not competent to attach under Section 5(1).

Example 2

On 1 March, an authorised Deputy Director provisionally attached shares worth ₹80,00,000 held by Ms. Kavita Sharma, after recording reasons in writing and after a complaint on the scheduled offence had been filed before a Magistrate. State the time limits and the procedure that follow.

Show the solution
  1. The attachment is by a competent officer, with written reasons, and the first-proviso pre-condition is met, so it is validly made.
  2. The order can last for a period not exceeding 180 days from the date of the order, that is from 1 March. If a High Court stays the proceedings, that stay period is excluded and a further period of not more than 30 days from the order vacating the stay is counted.
  3. Immediately after attachment, the Deputy Director must forward a copy of the order and the material to the Adjudicating Authority in a sealed envelope.
  4. Within 30 days of the attachment, that is by 31 March, he must file a complaint stating the facts of the attachment before the Adjudicating Authority.
  5. The order ceases earlier if an order under Section 8(3) is made before the 180 days end. Any appeal against the Adjudicating Authority's order lies to the Appellate Tribunal.

Answer: The attachment can last up to 180 days from 1 March. The copy of the order goes immediately in a sealed envelope, and the complaint must be filed by 31 March (within 30 days). The order ceases on expiry or on a Section 8(3) order, whichever is earlier.

Exam tips

  • For MCQs, learn the numbers cold: 180 days for attachment, 30 days for the complaint, Deputy Director as the minimum rank.
  • In case scenarios, first check the rank of the officer and whether reasons are recorded in writing. Many options turn on these two facts.
  • Always state the difference between attachment (provisional, temporary) and confiscation (final) when the question uses either word.
  • Name the first proviso and the second proviso separately. Examiners test the urgent-attachment exception.
  • Do not quote the long Schedule parts. Explain what a scheduled offence is and why it matters, and give an example only if you are sure it is listed.

Practice questions from Laws and Regulations related to Anti-Money Laundering

Scheduled Offences, Attachment and Adjudication in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Scheduled Offences, Attachment and Adjudication: frequently asked questions

What is a scheduled offence under PMLA?

A scheduled offence is a crime listed in the Schedule to the PMLA, 2002. Property derived from it is proceeds of crime. Without a scheduled offence, there are no proceeds of crime, so a money-laundering case cannot be built on it.

How long can property be provisionally attached under PMLA?

Under Section 5(1), for a period not exceeding 180 days from the date of the order. The period when a High Court stays the proceedings is excluded, and a further period of up to 30 days from the vacation of the stay is counted. The order also ceases earlier on an order under Section 8(3).

What is the difference between attachment and confiscation under PMLA?

Attachment is a provisional step that freezes the property during the proceedings. Confiscation is the final order by which the property goes to the Central Government. Attachment ceases after the 180 days or on a Section 8(3) order, whichever is earlier.

What does the Adjudicating Authority do under PMLA?

It receives the copy of the attachment order and material in a sealed envelope, and the complaint filed within 30 days. It then examines the attachment and passes orders under Section 8. Appeals against its orders go to the Appellate Tribunal.