#Asset Freezing

The Delhi High Court struck down an Appellate Tribunal interim order that sought to channel frozen proceeds of crime to settle liabilities of another company, holding such diversion beyond the scope of Section 42 of the PMLA. This bars authorities from using seized assets to satisfy third-party debts, affecting enforcement actions against money-laundering suspects.

Kerala High Court quashed a bank account freezing order after a six-year investigative delay, holding that prolonged inaction violates the accused's rights under Section 528 BNSS. The ruling directs trial courts to reconsider asset freezes where investigations remain incomplete beyond reasonable timelines, reinforcing accountability in financial investigations.

Rajasthan High Court holds that provisional attachment under PMLA cannot persist when the factual basis for it is withdrawn, reinforcing proportionality and due process.