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(iv) Our attention is also drawn to the Prevention of Money- Laundering (Forms, Search and Seizure or Freezing and the Manner of Forwarding the Reasons and Material to the Adjudicating Authority, Impounding and Custody of Records and the Period of Retention) Rules, 200582, and it is prayed that this Court must clarify that these rules are not ultra vires Sections 17 and 18 of the PMLA. Pertinently, they relate to the provisions of Cr.P.C. being applicable to searches under the Act.

(v) Next leg of submissions challenges the vires of the second proviso of Section 5(1), as it allows for attachment independent of the existence of a predicate offence, given that such property might not even be proceeds of crime. Though an emergency procedure, no threshold had to be met and the first proviso has no application. It is also submitted that the proviso cannot travel beyond the scope of the main provision. Our attention is drawn to the legislative history; it is stated that the PMLA did not originally contain the second 82 For short, “Seizure Rules, 2005” proviso. Attachment was only to be done after filing of chargesheet in the predicate offence. For the first time, in 2009, this proviso was added, to avoid frustration of the proceedings. It is submitted that this proviso has no anchor to either the scheduled offence or the proceeds of crime. It is at the mere satisfaction of the officer. In this way, it is submitted, attachment of property of any person can be made, with no fetters. Our attention is also drawn to the use of word ‘any’ for person and property and its distinction from the term ‘proceeds of crime’, having a direct nexus with the ambit of the main Section. It is argued that it is not to be mixed with any offence but only scheduled offences. The ED is alleged to employ this language in attaching property purchased much before the commission of scheduled offences, to the extent not having any nexus. It is submitted that there has to be a link between the second proviso to the proceeds of crime and scheduled offence being investigated under a specific ECIR before the ED.83