Attachment of property involved in money laundering

Posted on 05-05-2016        By ADMIN

“ Attachment of property  involved in money laundering ” - Sec.5

                     If a Director or any Other Officer ( notbelow the rank of Deputy Director ) - authorised by the Director -         has any reason to believe ( reasons tobe recorded in writing ) - on the basis of the material in his possessionthat:-

             i.         anyPerson - is in possession of any proceeds of crime, ( and )

            ii.      such Person - has been charged of havingcommitted a scheduled offence ( and )

            iii.        such Proceeds - are likely to beconcealed, transferred (or) dealt with in any manner - which may result   in frustrating any proceedings - relating tothe confiscation of such proceeds of crime ( under this chapter)   - then, he may by order in writing -provisionally attach such property - for a period not exceeding  90 days ( from the date of the order) - in the manner provided in the Second Schedule - to the Income tax Act, 1961.

         The aboveorder of attachment shall not be made - unless it is in relation to an Offenceunder Para 1 of Part A & B of the Schedule (or) Para 2 of Part A of theSchedule and a Report or a Police Report has been forwarded or filed.

         The Director/ Authorised Officer shall immediately after the above attachment - forward acopy of such order ( alongwith the material in his possession ) - to theAdjudicating Authority in a sealed envelope ( in the prescribed manner ) andsuch Adjudicating Authority - shall keep such order and material - for theprescribed period.

         The Director/ Authorised Officer - who provisionally attaches any property ( as above )shall also within a period of 30 days from such attachment - file a complaint -stating the facts of such attachment ( before the adjudicating authority ).

         The Order ofAttachment made u/s. 5(1) shall - shall cease to have effect - after the expiryof 90 days or on the date of order - whichever is earlier.

                     It is given that the Person interested- is not prevented from enjoying the attached immovable property.

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