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VOL. 8, ISSUE 1 (2026)
The independence of PMLA proceedings: Evaluating recent judicial trends in provisional attachments
Authors
Mohd Mustafa
Abstract
This research article evaluates the ‘functional independence’ of the
Prevention of Money Laundering Act, 2002, focusing on the provisional
attachment of assets under Section 5. Grounded in the Supreme Court’s landmark
Vijay Madanlal Choudhary ruling, the study characterizes the PMLA as a sui
generis framework where attachment is a preventive measure distinct from
punitive criminal liability. The analysis highlights evolving judicial trends
in 2024–2025, specifically the emergence of the ‘Doctrine of Substitution,’
exemplified by the M3M India case. This doctrine permits the substitution of
attached assets with unencumbered property of equivalent value to prevent the
‘civil death’ of commercial entities during protracted trials. Furthermore, the
article examines the judiciary’s insistence on procedural rigor, emphasizing
strict adherence to the statutory ‘reason to believe’ standard and the
mandatory timelines for retaining assets. It also addresses the critical
interplay between PMLA enforcement and the protection of bona fide third-party
rights under the Insolvency and Bankruptcy Code. The article concludes that
recent jurisprudence establishes a ‘Middle Path,’ upholding the Enforcement
Directorate's wide preventive powers while enforcing rigorous checks to protect
economic stability and constitutional property rights under Article 300A.
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Pages:5-11
How to cite this article:
Mohd Mustafa "The independence of PMLA proceedings: Evaluating recent judicial trends in provisional attachments". International Journal of Law, Policy and Social Review, Vol 8, Issue 1, 2026, Pages 5-11
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