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The Supreme Court has allowed M3M Group's plea to substitute property provisionally attached by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act, 2002. The ruling came after M3M challenged a Punjab & Haryana High Court order that had refused the substitution. The substitution is subject to nine conditions, including establishing clear title and ensuring assets that are free from encumbrances. M3M Group agreed to these terms, marking a step in legal proceedings concerning attached properties in real estate.
The Supreme Court has recently permitted a real estate group's request to replace certain provisionally attached properties. This ruling, involving M3M Group's plea, impacts a legal case under anti-money laundering laws, where the group challenged an earlier high court decision refusing this substitution. The highest court granted the substitution with specific conditions. Advertisement
The case originates from an investigation by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act, 2002. The ED had provisionally attached property belonging to M3M Group, specifically M/s. M3M India Pvt. Ltd. and M/s. M3M India Infrastructure Pvt. Ltd. The M3M Group later challenged an order from the Punjab & Haryana High Court, which had refused their plea for property substitution. This brought the matter before the Supreme Court.
The Supreme Court bench, comprising Justices P S Narasimha and R Mahadevan, granted the substitution, but it is subject to nine conditions proposed by the ED. The M3M Group has filed an affidavit agreeing to these conditions. Key requirements include the M3M Group establishing a clear and marketable title and undisputed ownership of the proposed substitute assets. This must be supported by verifiable documentary evidence to the court's satisfaction.
Additionally, the substituted assets must be free from all encumbrances, such as mortgages, liens, pledges, or any third-party claims. The petitioner must also provide a notarized undertaking that the substituted property will not be sold, transferred, or alienated during the pendency of proceedings.
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