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Attachment of Property
April 16 , 2019
1922 days
798
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- The Delhi High Court has held that in case of attachment of tainted properties obtained from “money laundering” and “from scheduled criminal activity", PMLA prevails over the RBDA, SARFAESI and Insolvency code.
- Section 71 of the PMLA has the overriding effect over other existing laws.
| Act | Abbreviation | Year | Objective |
| RBDA | Recovery of Debt and Bankruptcy Act | 1993 | To establish Tribunals for expeditious adjudication and recovery of debts due to banks and financial institutions |
| PMLA | Prevention of Money Laundering Act | 2002 | To prevent money-laundering and to provide for confiscation of property derived from money-laundering |
| SARFAESI Act | The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act | 2002 | It allows banks and other financial institution to auction residential or commercial properties (of Defaulters) to recover loans |
| Insolvency Code | The Insolvency and Bankruptcy Code | 2016 | It is also a bankruptcy law which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. |
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