The Karnataka High Court recently ruled that properties that were mortgaged to a bank could not be attached under the Prevention of Money Laundering Act (PMLA).

In the order dated October 17, a division bench of Justices D K Singh and Venkatesh Naik noted that attachment could only be with regard to property which was the fruit of crime, and not those properties which were offered as collateral.

The Central Bureau of Investigation (CBI) registered a case for criminal conspiracy and corruption against several people, including senior officials of a Syndicate Bank branch in Mandya, based on a complaint from the chief vigilance officer. The bank officials allegedly conspired to disburse loans, overdrafts, etc, to certain persons, violating procedures and exceeding their powers, which allege

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