Properties attached in PMLA probe to be released after acquittal: HC

Hyderabad: A division bench of the Telangana High Court, comprising Chief Justice Ujjal Bhuyan and Justice N. Tukaramji has stated that properties attached under the PMLA (Prevention of Money Laundering Act) shall be released upon closure of the case against their owners, either through acquittal or settlement through compromise.

The High Court was dealing with a petition filed by Manturi Shashi Kumar and his wife Swapna, who challenged a single judge order that rejected their request for the court to direct the Enforcement Directorate to release their properties as the money laundering case against them was closed.

The single judge had rejected the initial petition because the couple had settled the case in the Lok Adalat through a compromise and not on merit. The judge had also observed that the couple had no income and that the properties were purchased using proceeds of money laundering crime.

The division bench cited the Supreme Court judgment in the Vijay Madanlal Choudary case, in which the top court held that final acquittal from a scheduled offence or criminal case by competent authority implied there could be no offence. It also stated that it was immaterial whether the acquittal was on merit or compromise.

The division bench set aside the single-judge orders.