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CS Executive · Economic, Commercial and Intellectual Property Laws · Prevention of Money Laundering

Deputy Director Mehta of the Enforcement Directorate, authorised by the Director, records in writing his reasons to believe that Ravi Traders holds proceeds of crime likely to be dealt with so as to frustrate confiscation proceedings. He provisionally attaches the property under Section 5. For how long can this provisional attachment order operate, as per the Act?

A provisional attachment under Section 5 can last for a period not exceeding 180 days from the date of the order. It then ceases to have effect, or earlier if the Adjudicating Authority makes an order under section 8(3).

  1. ANot exceeding 90 days from the date of the order
  2. BNot exceeding 180 days from the date of the orderCorrect
  3. CNot exceeding 365 days from the date of the order
  4. DUntil the Special Court finally decides the trial

Explanation

Section 5(1) allows provisional attachment for a period not exceeding one hundred and eighty days from the date of the order. The 90-day option is wrong as the Act does not use it, and the attachment does not run until the trial ends; it ceases after 180 days or earlier on an order under section 8(3).

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