Lok Sabha Question No. 3586 (UNSTARRED), answered on 2020-03-16
Subject: Confiscation of Property by ED
Ministry: FINANCE
Asked by: Darshana Vikram Jardosh

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 3586

## TO BE ANSWERED ON MONDAY, THE 16 TH MARCH, 2020

PHALGUNA 26, 1941-42 (SAKA)

## Confiscation of Property by ED

## 3586.  SHRIMATI DARSHANA VIKRAM JARDOSH:

Will the Minister of FINANCE be pleased to state:

- (a)     the details of approximate value of property confiscated by the Enforcement Directorate (ED) during the last five  years  alongwith  the  funds  deposited  in  exchequer  of  the  country  by  the  ED  after  auction  of  the  said property as on date;
- (b) whether the ED has made any arrangements for auction of the confiscated property in transparent manner; and
- (c) if  not,  the  time  by  which  a  concrete  policy  is  proposed  to  be  formulated  for  this  purpose  alongwith  the details thereof?

## ANSWER

## MINISTER OF STATE IN  THE  MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

- a)    During  the  course  of  investigations  under  the  Prevention  of  Money  Laundering  Act,  2002  (PMLA),  the Directorate of Enforcement (ED) provisionally attaches immovable and movable properties which are suspected to be  acquired  from  out  of  Proceeds  of  Crime.  Thereafter  the  Directorate  files  Prosecution  Complaint  before  the designated  PMLA  Special  Court  praying  for  conviction  of  entities  accused  of  money  laundering  offence  and confiscation of attached properties. On conclusion of trial, the Special Court may order confiscation of attached properties in case offence of money laundering is made out. The order of Special Court is subject matter of further appeal  before  various  judicial  forums  including  High  Courts  and  Supreme  Court.  Accordingly,  confiscation  of attached properties attains finality  only  after  all  related  litigations  are  disposed  and  the  confiscation  is  upheld. Only after finalization of such litigations the confiscation becomes absolute and the confiscated properties vest with the Government, such properties can be sold.

ED also enforces the provisions of Foreign Exchange Management Act, 1999 (FEMA) during which the movable and immovable properties acquired in contravention to the provisions of FEMA and related RBI regulations are ordered to be confiscated during the process of adjudication. However such confiscation also attains finality only after such confiscation is upheld in further appeals before various judicial forums.

The details of approximate value of movable property confiscated by ED which is deposited in exchequer of the country by ED during the last 05 years are as under :

| Under Prevention of Money Laundering Act, 2002   | Under Foreign Exchange Management Act, 1999   |
|--------------------------------------------------|-----------------------------------------------|
| Rs. 92.70 crores                                 | Rs. 4.23 crores.                              |

(b) & (c) Till now no case involving confiscation of immovable property under PMLA or FEMA has attained finality. Therefore, no auction of confiscated property has been done by the Directorate. As and when the situation will come, the Directorate will auction the confiscated properties in a fair and transparent manner.

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