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

Mr. Iyer lives in a house that the Director has provisionally attached under Section 5(1) of the PMLA. Which statement is correct?

He may continue to enjoy the house. Section 5(4) provides that nothing in the section prevents a person interested in the enjoyment of immovable property attached provisionally from such enjoyment, and the term covers anyone claiming an interest in it.

  1. AHe must vacate immediately since attached property cannot be used
  2. BNothing in Section 5 prevents a person interested in the enjoyment of attached immovable property from such enjoymentCorrect
  3. CHe may enjoy it only after the Adjudicating Authority confirms the attachment
  4. DHe may enjoy it only if he pays rent to the Central Government

Explanation

Section 5(4) states that nothing in the section prevents the person interested in the enjoyment of attached immovable property from enjoying it. Person interested includes all persons claiming or entitled to claim any interest in the property. No confirmation or rent is required.

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