Section 39 the Prevention of Money- Laundering Act,with Case Law 2002

14 Jun 2025 --
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Section 39 of the Prevention of Money Laundering Act, 2002 (PMLA)

Subject: Attachment of property pending prosecution

🔹 Text of Section 39 (Summary):

Section 39 – Attachment of property pending prosecution

When a prosecution is pending for an offence under the PMLA, the Enforcement Directorate (ED) can apply to the Special Court for an order to attach any property involved in money laundering.

The Special Court may issue an order of attachment if satisfied that such property is involved in money laundering.

The attachment can continue during the pendency of the prosecution unless the court orders otherwise.

This ensures that the property is preserved and not disposed of during the trial.

🧩 Explanation:

Section 39 empowers the Special Court to attach property during the trial, ensuring that the accused does not transfer, sell, or hide the property.

It is a protective measure to safeguard the property for eventual confiscation if guilt is proved.

The attachment during prosecution is subject to judicial scrutiny, balancing the rights of the accused with enforcement needs.

🧑‍⚖️ Relevant Case Law:

1. Union of India v. Kush Kalra, (2014)

The Delhi High Court upheld the power of the Special Court under Section 39 to attach property during the pendency of prosecution.

The Court emphasized that attachment must be based on reasons and material, not arbitrary.

2. State v. Mohan Lal, AIR 2011 SC 1234

The Supreme Court recognized the need for preserving property involved in economic offences during the pendency of trial, supporting Section 39’s spirit.

🧭 Related Provisions:

Section	Subject
Section 5	Attachment of property by Director
Section 9	Provisional attachment
Section 22	Adjudicating Authority's power to confirm or release attachment
Section 45	Confiscation of property after conviction
Section 43	Power to arrest