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Supreme Court through its judgement dated 06.02.2026 in M/s Nav Nirman Builders & Developers Pvt. Ltd. v Union of India1 held that, once an order confirming attachment under Section 8(3) of the Prevention of Money Laundering Act, 2002 ("PMLA") is assailed before the Appellate Tribunal under Section 26 of the PMLA, any proceedings seeking confiscation under Section 8(7) of the PMLA ought not to be taken up for adjudication during the pendency of such appeal.
The court observed that once a challenge is made to an order passed under Section 8(3) of PMLA, either to the Appellate Tribunal, High Court or Supreme Court, the order passed by such higher forum supersedes and replaces the earlier order under Section 8(3). Hence, once an order under Section 8(3) of the PMLA is challenged, a deemed embargo operates on the conclusion of proceedings under Section 8(7) of the PMLA.
Footnote
1 SLP (Crl.) No. 9216 of 2023.
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