New Delhi, Sept 25 (UNI) The Delhi High Court has ruled that the period of limitation for confirming the provisional attachment of properties under the Prevention of Money Laundering Act (PMLA) was validly extended by the Supreme Court’s orders issued during the COVID-19 pandemic.
A division bench set aside the judgment of a single judge and dismissed a related writ petition, holding that the extraordinary directions from the Supreme Court, which excluded the pandemic period from statutory timelines, applied to quasi-judicial proceedings under the PMLA.
The case involved a challenge to a provisional attachment order issued by the Enforcement Directorate (ED). The central question was whether the 180-day period for an adjudicating authority to confirm such an attachment could be extended by the Supreme Court’s general orders on limitation.
The High Court concluded that the adjudication process under the PMLA is a quasi-judicial function. It noted that the Supreme Court’s intention was to prevent the failure of justice across all judicial and quasi-judicial forums due to the unprecedented lockdowns and restrictions. Therefore, the ED could not be penalised for delays caused by circumstances beyond its control, as the adjudicating authority itself was unable to function normally during the health crisis.
The court emphasised that its decision was based on the unique and extraordinary circumstances of the pandemic and should not be seen as a precedent for indefinite extensions of attachment periods under normal conditions.
Delhi HC upholds ED’s power to extend asset attachments during pandemic
