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

Mr. Sharma, a Deputy Director at the Enforcement Directorate, provisionally attaches property of Ravi Traders Ltd. under Section 5 of the PMLA, 2002 by an order dated 1 March. Ignoring any High Court stay, which statement is correct?

Provisional attachment under Section 5 lasts for a period not exceeding 180 days from the date of the order, and the attaching officer must file a complaint before the Adjudicating Authority within 30 days of the attachment. It cannot continue indefinitely.

  1. AThe attachment can continue for up to 180 days from the date of the order, and a complaint must be filed before the Adjudicating Authority within 30 days of attachmentCorrect
  2. BThe attachment can continue for up to 90 days, and a complaint must be filed within 60 days
  3. CThe attachment is valid indefinitely until the court decides the scheduled offence, and no complaint is needed
  4. DThe attachment can continue for up to 180 days, and a complaint must be filed within 180 days

Explanation

Section 5(1) allows provisional attachment for a period not exceeding 180 days from the date of the order. Section 5(5) requires the officer to file a complaint stating the facts before the Adjudicating Authority within 30 days of attachment. The 90/60 and indefinite options misstate these periods, and 180 days for the complaint confuses the two periods.

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