Asset Recovery & Attachment Lawyer

Key laws & sections

• Prevention of Money Laundering Act, 2002 — Sections 5, 8 & 26

  Section 5 (provisional attachment by ED), Section 8 (Adjudicating Authority confirmation within 180 days), Section 26 (appeal to the Appellate Tribunal). We defend at all three stages.

• Income Tax Act — Section 281B

  Provisional attachment by the IT Department to protect revenue. Six-month window, extendable to two years. Defended through writ petitions and Section 281B(2) representations.

• SARFAESI Act, 2002 — Sections 13, 14 & 17

  Bank’s power to take possession of secured assets, Magistrate’s assistance under Section 14, and the borrower’s remedy before the DRT under Section 17.

• Code of Civil Procedure — Order 38 (Attachment Before Judgment) & Order XXI (Execution)

  Order 38 Rule 5 attachment before judgment to prevent dissipation; Order XXI execution mechanisms — bank attachment, sale of property, garnishee orders.

• Banning of Unregulated Deposit Schemes Act, 2019

  Schedule attachment of properties of deposit-taking schemes for restitution to depositors — we file restitution claims for investor clients.

How we run the matter

1. 1
   Attachment defence — first 30 days

   On a Section 5 PMLA / Section 281B IT / SARFAESI possession notice, the first 30 days decide a lot. We file the response, secure the original property documents, and where possession is threatened, move for stay before the appropriate forum.

2. 2
   Adjudicating Authority / DRT representation

   Detailed defence on origin of property, source of funds, ownership chain and absence of nexus to scheduled offence. For PMLA, the 180-day Section 8 confirmation hearing is the make-or-break stage.

3. 3
   Tribunal appeal

   Appeal to the PMLA Appellate Tribunal under Section 26 within 45 days; DRAT for SARFAESI matters under Section 18 within 30 days; ITAT for IT attachments. Strict timelines — we don’t miss them.

4. 4
   Recovery side — Order 38 attachment

   For decree-holders / pre-decree creditors, attachment before judgment under Order 38 Rule 5 where there is reasonable belief that the defendant is dissipating assets. Bank account attachment, property attachment, garnishee notices.

5. 5
   Restitution claims

   For BUDS Act and PMLA-attachment scenarios where the investor is on the right side, we file restitution claims for proportionate distribution from sale of attached promoter assets.

Why Shield for this

• Both sides experience. We defend attached owners and we recover from defaulting debtors. Acting on both sides keeps our drafting honest — we know which Order 38 applications survive and which Section 5 PMLA defences win.
• PMLA Adjudicating Authority practice. Recent matter — a residential flat purchased two years before the alleged scheduled offence; we proved arms-length sale, full bank-trail purchase consideration and absence of any “proceeds of crime” nexus; provisional attachment not confirmed at the Section 8 stage.
• SARFAESI defence with realistic settlement. Most SARFAESI matters are over-leveraged borrowers vs banks unwilling to restructure. We negotiate one-time settlements while the Section 17 DRT application creates leverage — usually settles at 60–80% of dues.
• Order 38 attachment that holds. A recent commercial recovery matter where the defendant began transferring properties on learning of the suit — Order 38 Rule 5 attachment of three immovable properties obtained at first listing, judgment-creditor recovery eventually full from sale of attached assets.

Questions clients ask first