Delhi High Court restrains ED from taking further steps on attached property of Rana Ayyub

The Delhi High Court on Wednesday restrained the Enforcement Directorate (ED) from taking any further steps against journalist Rana Ayyub under Section 8 of the Prevention of Money Laundering Act (PMLA) in relation to her properties attached by the agency on charges of money laundering [Rana Ayyub v Directorate of Enforcement]. .Justice Yashwant Varma also restrained Ayyub from disposing, creating any third party rights or encumbering the subject property. .Under the PMLA, once a provisional attachment order is passed, the property remains attached for a period of 180 days, unless the order is confirmed by the Adjudicating Authority (AA). Section 8 of the PMLA empowers the AA to confirm the provisional attachment order if it finds that the property was part of a money laundering case. If a confirmation order is passed, the subject property remains attached for a period of 365 days.In Ayyub's case, the provisional order was issued on February 4 this year. The 180-day period expired on August 2. Her application to dismiss and discontinue the proceedings, filed the very next day, was dismissed by the authority on August 4 and the proceedings continued..The Court also issued notice to the ED on Ayyub's plea challenging the provisional attachment order and all consequent proceedings arising out of the same. The matter will now be considered on November 17, along with a batch of similar such cases. .The ED attached Ayyub's assets worth ₹1.77 crore in connection with alleged irregularities in the collection of charitable funds for COVID-19 relief work.The agency said that the journalist did not respond to summons issued to her earlier, and that her leaving the country would delay the probe and filing of the charge sheet in court.In April, the High Court had held that the Look Out Circular (LOC) issued by ED preventing Ayyub from travelling abroad was issued in haste and infringed on her human right to travel abroad and exercise freedom of speech and expression..In her petition, Ayyub has argued that upon expiry of 180 days from the date of provisional attachment under Section 5(1) of PMLA, the authority is rendered functus officio (mandate has expired) and that the order of attachment lapses and ceases to exist in the eyes of law. "As such, after expiry of 180 days, the Adjudicating Authority can no longer pass an order of confirmation in terms of Sec. 8(3) PMLA," the plea stated. It further said,"The continuance of the provisional attachment and the proceedings u/Sec. 8 PMLA despite the validity of the Provisional Attachment Order having expired in terms of Sec. 5(1) and 5(3) PMLA, renders the attachment and the consequent proceedings illegal, and violates the Petitioner's constitutional right under Article 300A of the 7 Constitution." .Advocates Vrinda Grover and Soutik Banerjee appeared for Ayyub. CGSC Anurag Ahluwalia along with advocates Kaushal Jeet Kait, Danish Faraz Khan and Vishal Chanda appeared for ED. .LOC against Rana Ayyub issued in haste; violated right to travel, freedom of speech: Delhi High Court .[Read Order]