Provisional attachment

A provisional attachment is an order of the Directorate of Enforcement under section 5 of the Prevention of Money-laundering Act, 2002 that prevents property from being transferred while it is examined as proceeds of crime. It lasts for up to 180 days. A complaint goes to the Adjudicating Authority within thirty days, the Authority gives at least thirty days' notice, and on confirmation the attachment continues through the investigation and the proceedings that follow.

The asset is frozen for transfer, not for use: section 5(4) preserves the enjoyment of attached immovable property. The cost is in the loss of the asset as collateral. In the illustration in our note of 21 September 2026, an attachment of an unencumbered asset worth INR 10 crore costs about INR 50 lakh over the first year, five per cent of its value. In 2026 the Delhi High Court held that ancestral and inherited property enjoys no immunity and that untainted property of equivalent value may be attached where the tainted property cannot be found, and the Supreme Court held that confiscation cannot be ordered while an appeal against confirmation is pending.