ORDER :

1. Prayer in the instant writ petition is for a declaration, declaring as ultra-vires the provisions of Section 8 (4) of the Prevention of Money Laundering Act, 2002 (herein after called as the Act) and the Prevention of Money Laundering (Taking Possession of Attached or Frozen Properties confirmed by Adjudicating Authority) Rules, 2013, (hereinafter called as the Rules) as being unjust, manifestly arbitrary and therefore, violative of Article 14 of the Constitution of India.

2. In Section 3 of the Act, whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of offence of money laundering.

3. Section 5 of the Act, provides that where an Officer not below the rank of Deputy Director has reason to believe on the basis of the material in his possession that any person is in possession of any proceeds of crime and such proceeds of crime are likely to be concealed, transferred or dealt with in any manner which may result in frustrating any proceedings relating to confiscation of such proceeds of crime, he may order for a provisional attachment of such property for a period not exceeding 180 days.

4. The order passed under Section 5 (1) comes up for consideration before the Adjudicating Authority who is appointed under Section 6 of the Act. Section 6 of the Act provides that a person shall not be qualified as a member of the Adjudicating Authority in the field of law unless he is qualified to be appointed as a District Judge or has been a member of the Indian Legal Service and has held a post in Grade-I of that service. In the field of Finance, Accountancy or Administration, the member must possess such qualifications as may be prescribed.

5. Section 8 provides that on receipt of a complaint, under Section 5 (5) or applications made under Section 17 (4) or Section 18 (10) if the Adjudicating Authority has reason to believe that any person has committed an offence under Section 3 or is in possession of proceeds of crime, he may serve a notice on such person calling upon him to indicate the source of his income, earning or assets out of which or by means of which he has acquired the property attached under Section 5 (1) or seized or frozen under Section 17 or 18. Sub-Section 2 of Section 18 provides that after considering the reply to the notice sent by the authority to the person concerned and after hearing the aggrieved person and the Director appointed under Section 49 (1) of the Act, and after taking into account all the relevant material decides as to whether the properties referred to in the notice issued under sub-section 1 of Section 8 are involved in the offence of Money Laundering. Where the Adjudicating Authority decides that the property is involved in the offence of Money Laundering, then an order is passed under sub-section 3 of Section 8 confirming the provisional attachment of the property made under Section 5 (1). Sub-Section (4) of Section 8 of the Act, provides that where the provisional order of attachment gets confirmed, the Director or any other Officer authorised by him in this behalf shall forthwith take the possession of the property attached under Section 5, in a manner that is prescribed. For this purpose, the Prevention of Money Laundering (Taking Possession of Attached or Frozen Properties confirmed by Adjudicating Authority) Rules 2013 have been framed. Under these Rules, where the attachment order had been confirmed by the adjudicating authority for an immovable property, the authorised Officer shall issue a notice of eviction of ten days, so as to prevent the person from enjoying such property and after issuing of such notice, if the premises is not vacated in time, the occupant is evicted and possession is taken with the assistance of local authori