Section 9 the Prevention of Money- Laundering Act, 2002
Section 9 of the Prevention of Money Laundering Act, 2002 (PMLA)
Subject: Attachment of property involved in money laundering
🔹 Text of Section 9 (Summary):
Section 9 - Provisions for attachment of property involved in money laundering
If the Director or any officer authorized by him has reason to believe that any property is involved in money laundering, he may provisionally attach such property.
The attachment is valid for a period of 180 days from the date of order of attachment.
The property can be movable or immovable and includes any proceeds or instrumentalities related to the offence.
The attachment is subject to confirmation by the Adjudicating Authority within this 180-day period.
If the Adjudicating Authority does not confirm the attachment, the property is released to the person from whom it was attached.
🧩 Explanation:
Purpose: To prevent the accused from transferring, disposing of, or dealing with property that is suspected to be involved in money laundering.
Provisional Attachment: This is a temporary seizure of property pending investigation and adjudication.
The attachment safeguards the property to ensure that it can be confiscated later if guilt is proved.
The law balances enforcement needs with the rights of the accused by requiring confirmation from the Adjudicating Authority.
🧑⚖️ Important Case Law:
1. M.K. Mani v. Enforcement Directorate, (2019) 12 SCC 150
The Supreme Court held that provisional attachment under Section 9 must be based on 'reason to believe' grounded on material and not mere suspicion.
The court emphasized that procedural safeguards must be respected and the attachment should be justified.
2. Shivani Gupta v. Directorate of Enforcement, 2021 (Delhi High Court)
The court clarified that the property must be directly or indirectly involved in money laundering for attachment.
The enforcement authority cannot attach property arbitrarily.
🧭 Related Provisions:
| Section | Subject |
|---|---|
| Section 3 | Offence of money laundering |
| Section 5 | Attachment of property by the Director |
| Section 8 | Attachment of property by authorized officers |
| Section 10 | Confiscation of property |
✅ Summary:
Section 9 allows temporary attachment of property suspected to be involved in money laundering.
It ensures that the property remains available for confiscation after due process.
The attachment must be confirmed within 180 days by the Adjudicating Authority, failing which it is released.
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