Delhi High Court Upholds Attachment of Ancestral Property Under PMLA

The Delhi High Court has ruled that ancestral properties do not have special protection under the Prevention of Money Laundering Act (PMLA), leading to the dismissal of an appeal against the Directorate of Enforcement's (ED) attachment of a residential property. The division bench emphasized the absence of exceptions for ancestral properties in the law.

The Court clarified that authorities can attach untainted properties equivalent in value to the original proceeds of crime if they cannot be traced. Referring to a Supreme Court judgment, the Court broadened the definition of 'proceeds of crime' to include property not directly derived from criminal activity but equal in value.

Despite arguments that ancestral properties should be immune from such attachment, the Court held that no such protection exists under the PMLA. This decision involved a property at Sainik Vihar, Pitam Pura, Delhi, with the appellant contending it was purchased legitimately. The ED maintained that untraceable foreign assets necessitated the property's attachment.