The Supreme Court recently reiterated that the objective of Section 8(8) of the Prevention of Money Laundering Act(PMLA) is to ultimately restore any attached properties to the bonafide successful resolution application(SRA) who have a legitimate interest in it.
Section 8(8) allows the Special Court to direct the Central Government to restore property that has been confiscated under the Act to a person or claimant who has a legitimate interest in it, upon conclusion of the trial. However, second proviso allows restoration during the trial.
Involving second proviso to Section 8(8) of PMLA, the Court allowed that the property of V Hotels Limited(corporate debtor), confiscated by the Enforcement Directorate (ED), be restored to Macrotech…