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

The Director provisionally attaches a residential house of Mr. Kapoor, which is immovable property, under Section 5(1). Mr. Kapoor and his family are living in it. What is the position under Section 5?

Under Section 5(4), attachment does not stop the person interested in the enjoyment of the immovable property from enjoying it. 'Person interested' includes everyone claiming or entitled to claim an interest, so Mr. Kapoor's family need not vacate merely because of provisional attachment.

  1. AThey must vacate the house immediately on attachment
  2. BThey may be prevented from enjoyment until the Adjudicating Authority decides
  3. CThe person interested in the enjoyment of the immovable property is not prevented from such enjoymentCorrect
  4. DOnly the registered owner, but not other claimants, may continue enjoyment

Explanation

Section 5(4) says nothing in the section prevents the person interested in the enjoyment of attached immovable property from such enjoyment. 'Person interested' includes all persons claiming or entitled to claim any interest, so the last option, limiting it to the registered owner, is wrong.

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