Under Section 5 of the Prevention of Money Laundering Act, 2002, the Director, or any other officer not below the rank of Deputy Director authorised by him, may order the provisional attachment of property involved in money laundering for a period

Correct option is B

The correct answer is (b) not exceeding 180 days from the date of the order.

Explanation

According to Section 5(1) of the Prevention of Money Laundering Act (PMLA), 2002, the Director or any officer (not below the rank of Deputy Director) can issue a Provisional Attachment Order if they have reason to believe that a person possesses "proceeds of crime."

• Duration: The law specifies that this provisional attachment is valid for a period not exceeding 180 days from the date of the order.
• Purpose: This "cooling-off" period is intended to prevent the accused from concealing or transferring the property while the investigation is ongoing, effectively "freezing" the assets.
• Statutory Requirement: The officer must record the reasons for this belief in writing and file a complaint before the Adjudicating Authority within 30 days of the attachment.

Information Booster:

The 180-day limit is a strict statutory deadline. If the attachment is not confirmed by the Adjudicating Authority within this timeframe, the order automatically ceases to have effect, and the property must be released.

The Timeline of Attachment:

1. Day 0: Provisional Attachment Order issued (Valid for 180 days).
2. Within 30 Days: A complaint must be filed by the ED before the Adjudicating Authority.
3. Within 180 Days: The Adjudicating Authority must hear the parties and pass an order either confirming or vacating the attachment.
4. Post-Confirmation: Once confirmed under Section 8(3), the attachment continues during the investigation/trial for a period not exceeding 365 days (or the pendency of the proceedings).