
Use of Frozen Proceeds for Third-Party Liabilities Ultra Vires Under Sec 42 PMLA | Interim Relief : Delhi HC
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.






