What is the ‘Adjudicating Authority’ that has confirmed ED’s attachment of Rahul-Sonia-promoted company’s assets?

Subject: Polity

Section: Legislation inn news

Context:

The Adjudicating Authority under the Prevention of Money Laundering Act, 2002 (PMLA) on April 10 confirmed the attachment of assets worth Rs 751.9 crore belonging to the Congress party-promoted National Herald newspaper.

More on news:

The Enforcement Directorate (ED) had provisionally attached these properties in November 2023 in a PMLA case against Associated Journals Ltd (AJL) that publishes National Herald, and Young Indian (YI), that owns the newspaper.

What is the role of the Adjudicating Authority?

Section 5 of the PMLA provides for the attachment of any property that is suspected to have been acquired with the proceeds of crime in a case of any offense that is listed in the schedule of the law.
The attachment order is issued if the ED Director feels that such proceeds of crime are likely to be concealed, transferred or dealt with in any manner which may result in frustrating any proceedings relating to confiscation of such proceeds of crime.
This provisional attachment order is valid for a period of 180 days.
It must be confirmed within this time by an Adjudicating Authority appointed by the central government, failing which the property is automatically released from attachment.
As the initial attachment is provisional, the accused can continue to enjoy the property until the Adjudicating Authority confirms the attachment — after which the ED has the power to claim possession.

What happens after the Adjudicating Authority confirms the attachment?

The accused has the right to challenge the Adjudicating Authority’s confirmation order at the PMLA’s Appellate Tribunal within 45 days.
If the Appellate Tribunal too confirms the order, the accused can file a plea in the High Court, and so on.
Unless the property is released along the way, it shall remain out of bounds for the owner until the trial is completed.
Following final confirmation, in case of a residential property, the ED will ask the owner to vacate the premises along with his belongings, and will take over possession.
In case of a conviction, the trial court may order confiscation of the attached property, and vest the rights to the property with the central government.
Attached properties may remain locked for years as the legal process continues, and may start to crumble and decay.
Any vehicles that are attached are sent to warehouses owned by the Central Warehousing Corporation, where the ED pays to park the vehicle. As cases drag on for years, the vehicles too rot.
At the end of the trial, neither the accused nor the ED recovers anything from the vehicle.
The agency could, in fact, end up paying more rent than the value of the vehicle.