Summary
- The Karnataka High Court has partly allowed a writ petition by Mantri Developers, putting a provisional attachment order under the Prevention of Money Laundering Act, 2002 on hold.
- The court ruled that while the Enforcement Directorate's power to attach properties under Section 5 of the PMLA is valid, it cannot proceed with the attachment due to an ongoing stay on predicate offence investigations.
- This decision stems from a case involving allegations of fraud under Sections 406, 415, 417, and 420 IPC linked to properties valued at approximately Rs.300.43 crore.
- The implications of this ruling may significantly affect future PMLA proceedings tied to stayed predicate offences, as they must await the outcome of related criminal
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