Death, Insolvency or Dissolution During PMLA Proceedings: Who Can Continue the Case and Protect the Property?: Delhi Procedure and Defence Guide

Section 72 PMLA • Section 8(7) • Legal Heirs • Insolvency • Dissolution • Property Confiscation

The death of an accused or property owner does not automatically terminate every PMLA consequence. Personal criminal liability, attached property, confiscation, pending appeals, inheritance and corporate insolvency each follow different statutory routes. The central task is to separate the person from the property and identify who is legally entitled to represent the estate, company or attached asset at the next stage.

Research and professional guidance by

Current legal review: 19 August 2026

Direct Answer

If a person dies during PMLA proceedings, his or her personal criminal liability and the legal fate of attached property must be separated.

PMLA expressly recognises that a criminal trial may become impossible because the accused has died. But Section 8(7) nevertheless allows the Special Court, on an appropriate application, to determine whether property already covered by the Section 8(3) framework should be confiscated or released.

At the appellate level, Section 72 expressly allows legal representatives—and, in the insolvency context described by the provision, the official assignee or official receiver—to file or continue specified appeals before the PMLA Appellate Tribunal and High Court.

Therefore:

DEATH OF THE PERSON ≠ AUTOMATIC RELEASE OF THE PROPERTY.

INHERITANCE OF THE PROPERTY ≠ INHERITANCE OF PERSONAL CRIMINAL GUILT.

Where a company becomes insolvent or enters liquidation, the relevant resolution professional or liquidator may have statutory authority under the Insolvency and Bankruptcy Code to protect assets and represent the corporate debtor in legal proceedings.

Where a company has actually been dissolved or struck off, the analysis becomes more specialised: Section 72 does not expressly mention corporate dissolution, so the Companies Act, IBC, the manner of dissolution, restoration provisions and the surviving property/liability structure must be examined.

Quick Navigation

1. The two-track rule: person vs property
2. What changes depending on when death occurs?
3. Section 72 PMLA and continuation of appeals
4. A.S.V. Krishnam Raju: legal-heir substitution
5. Section 8(7): property after death of accused
6. Inheritance of attached property
7. Can an heir personally become a PMLA accused?
8. Criminal appeal after death
9. Section 72 and insolvency
10. Corporate insolvency and liquidator/RP
11. IBC Section 32A and attached property
12. Company dissolution or strike-off
13. Section 70 company liability
14. Practical substitution procedure
15. Documents legal representatives should obtain
16. Practical scenarios
17. Litigation strategy
18. Frequently asked questions

The Two-Track Rule: Personal Criminal Liability and Property Consequences Are Different

TRACK A — PERSON Section 3 offence, prosecution, conviction, punishment, criminal appeal and accused-specific conduct. TRACK B — PROPERTY Attachment, confirmation, possession, confiscation, release, inheritance, estate representation and property appeals.

This distinction is indispensable after death.

Section 3 is directed towards the conduct of a person who directly or indirectly attempts to indulge, knowingly assists, knowingly becomes a party to, or is actually involved in a process or activity connected with proceeds of crime.

That is personal criminal culpability.

The property framework operates differently.

Property may have already been:

• provisionally attached under Section 5;
• confirmed under Section 8(3);
• taken into possession under the statutory regime;
• placed before the Special Court for confiscation/release determination;
• made the subject of a Section 26 appeal.

The owner dying does not automatically reverse those earlier property orders.

The Core Distinction

THE OFFENCE IS PERSONAL.

THE PROPERTY QUESTION CAN SURVIVE THE PERSON.

The Date of Death Matters: Identify the Exact Procedural Stage

When Death Occurs	Immediate Legal Question	Potential Route
Before Section 8 confirmation	Who represents deceased person's property interest before the Authority?	Estate/LR representation and hearing; examine current procedural directions and title interest.
After Section 8 attachment/confirmation but before Section 26 appeal	Can the challenge still be filed?	Section 72(1) expressly contemplates filing by legal representative / specified insolvency representative.
During pending Section 26 appeal	Does appeal abate?	Section 72 allows continuation by legal representative / applicable insolvency representative.
After Tribunal decision but before Section 42 appeal	Who can approach High Court?	Section 72(2), read with Section 42.
During Section 42 appeal	Who can continue?	Section 72(2), subject also to applicable High Court procedure.
Before/during PMLA criminal trial	Can personal prosecution continue against deceased?	Section 8(7) expressly recognises inability to conduct/conclude trial and creates a separate property route.
After conviction during criminal appeal	Does criminal appeal abate?	Apply BNSS Section 435 or saved CrPC regime as applicable—not Section 72 alone.
During corporate insolvency	Who controls company property/litigation?	IBC RP/liquidator powers; Section 32A where its conditions arise.
After company strike-off/dissolution	Does entity/property liability survive?	Companies Act Sections 248/252 and case-specific restoration/representation analysis.

Section 72 PMLA: Parliament Expressly Preserved the Property Appeal After Death or Insolvency

Section 72 is one of the most practically important but underused provisions in PMLA property litigation.

Before the Appellate Tribunal

Broadly, Section 72(1) addresses two situations:

1. property has been attached and the affected person dies or becomes insolvent before filing the Appellate Tribunal appeal; or
2. the appeal has already been filed and the appellant dies or becomes insolvent while it is pending.

In the circumstances specified by the section, the legal representative or applicable insolvency representative can step into the person's place.

The practical consequence is important:

THE STATUTORY PROPERTY APPEAL DOES NOT AUTOMATICALLY DIE WITH THE OWNER.

Before the High Court

Section 72(2) performs a parallel function after the Appellate Tribunal stage.

If the entitled person dies before filing the Section 42 appeal, or the appellant dies while the High Court appeal is pending, the legal representative or applicable insolvency representative may file or continue the proceeding within the framework of Section 72(2).

Section 42 limitation still matters for a new High Court appeal

Section 42 ordinarily permits an appeal from an Appellate Tribunal decision within sixty days from communication of the order on a question of law or fact, with a further period not exceeding sixty days where sufficient cause is established.

Section 72 says Section 42 applies “so far as may be”.

Do not confuse: the limitation for instituting a substantive Section 42 appeal with the procedural question of substituting a legal representative in an appeal already pending.

A.S.V. Krishnam Raju: The 2025 Legal-Representative Judgment

The Andhra Pradesh High Court's decision in A.S.V. Krishnam Raju (Dead) v. Deputy Director of Enforcement is a highly important recent authority on Section 72.

What happened?

The deceased appellant had challenged a PMLA attachment order before the Appellate Tribunal.

He died while that appeal was pending.

His daughter later sought substitution as his legal representative.

The Appellate Tribunal refused substitution and treated the appeal as abated by applying a 90-day approach derived from Order XXII CPC and Article 120 of the Limitation Act.

What did the High Court hold?

The High Court rejected that approach.

Its reasoning, in substance, was:

• Section 72 expressly permits legal representatives to continue a pending PMLA property appeal;
• the section itself does not prescribe a time limit for the LR continuation application;
• the 45-day period in Section 26 governing filing of the substantive appeal cannot simply be treated as the LR-substitution period;
• Section 35 says the Appellate Tribunal is not bound by CPC procedure;
• without regulations making the Order XXII mechanism applicable, the Tribunal could not artificially introduce the 90-day limitation;
• the statutory continuation right should not be nullified by treating the appeal as having irretrievably abated.

The High Court therefore allowed the LR application and remanded the appeal for adjudication on merits.

Practical significance: if an appellant has died during a pending PMLA attachment appeal, counsel should examine Section 72 before accepting a Registry or opposing-party argument that the appeal has simply abated because a conventional CPC substitution period passed. Accuracy safeguard: the judgment dealt with the PMLA Appellate Tribunal. Do not automatically assume that every High Court procedural rule concerning substitution is displaced in the same way.

Section 8(7): What Happens to Attached Property When the Accused Dies?

Section 8(7) is the statutory bridge between an unfinished criminal case and an unresolved property claim.

It applies where a trial:

• cannot be conducted because the accused died;
• cannot be conducted because the accused is a proclaimed offender;
• cannot be conducted for another reason; or
• started but cannot be concluded.

Where the relevant property has the Section 8(3) confirmation status described in the provision, the Special Court can be moved by:

• the Director; or
• a person claiming to be entitled to possession of the property.

The Court then examines the material before it and determines whether the property should be:

CONFISCATED

or

RELEASED.

Why this changes the death analysis

Without Section 8(7), one might incorrectly assume that because a deceased person cannot be tried, the State's confiscation case necessarily collapses.

Parliament expressly created a property determination even when the criminal trial cannot proceed.

The converse is equally important

Section 8(7) does not say:

“Accused died, therefore confiscate automatically.”

The Special Court must consider the material and decide whether confiscation or release is appropriate.

A legal representative or person claiming possession should therefore place before the Court:

• title documents;
• source-of-funds material;
• inheritance documents;
• chronology of acquisition;
• evidence challenging the proceeds-of-crime nexus;
• joint ownership evidence;
• third-party interest documents;
• the complete attachment history.

Inheritance of Attached Property: What Exactly Does the Heir Receive?

The safest way to analyse inheritance is:

THE HEIR SUCCEEDS TO THE DECEASED'S LEGAL INTEREST—NOT TO A BETTER TITLE THAN THE LAW ACTUALLY LEAVES AVAILABLE.

If a property was already subject to a subsisting PMLA attachment or confirmation order when the owner died, death alone does not automatically erase that restraint.

Example

Father purchases Property A in 2012.

ED attaches Property A in 2025.

Attachment is confirmed under Section 8(3).

Father dies in 2026.

His daughter is his legal heir.

The daughter's succession claim and the PMLA attachment must now be considered together.

Her defence may be:

• Property A was acquired from lawful funds;
• the acquisition predates the alleged proceeds;
• ED has incorrectly treated it as direct proceeds;
• equivalent-value theory is legally/factually inapplicable;
• the valuation is incorrect;
• only a particular fractional interest belonged to the deceased.

But the argument should not simply be:

“I inherited it, therefore the earlier attachment vanished.”

Inherited property acquired before the alleged offence

Where the deceased himself inherited an ancestral or family property long before the alleged criminal activity, acquisition chronology can be an important defence against an allegation that the asset itself was directly purchased from proceeds of crime.

However, direct-tracing analysis must be distinguished from any legally maintainable equivalent-value theory.

Does the Legal Heir Inherit the Deceased's PMLA Criminal Liability?

No principle should be stated that inheritance itself transfers personal criminal guilt.

Section 3 asks whether the particular person directly or indirectly:

• attempted to indulge;
• knowingly assisted;
• knowingly became a party; or
• was actually involved

in the statutory process/activity connected with proceeds of crime.

Therefore:

HEIR TO PROPERTY
≠
HEIR TO CRIMINAL GUILT

But a later independent Section 3 case is possible on different facts

Suppose an heir, after acquiring knowledge of the alleged criminal provenance, independently participates in concealment, use, transfer, projection or another Section 3 process/activity.

That would require a separate accused-specific enquiry.

The prosecution cannot simply substitute:

“you are the son/daughter/spouse”

for the statutory ingredients of Section 3.

Criminal Appeal After Death: Do Not Use Section 72 for the Wrong Proceeding

Section 72 principally addresses the specified PMLA property-appeal sequence.

A criminal appeal against conviction follows criminal appellate procedure.

For proceedings governed by BNSS, Section 435 deals with abatement of appeals.

Among its provisions:

• certain State appeals abate upon death of the accused;
• other appeals ordinarily abate upon death of the appellant, except an appeal from a sentence of fine;
• where an appeal concerns conviction and sentence of death or imprisonment, a near relative may, within thirty days of death, seek leave from the appellate court to continue it.

“Near relative” for that provision includes:

• parent;
• spouse;
• lineal descendant;
• brother;
• sister.

Do not confuse the two clocks:

Section 72 property-appeal substitution before the PMLA Tribunal was the subject of the Krishnam Raju ruling.

BNSS Section 435 contains a specific 30-day mechanism for the criminal-appeal category described there.

For older criminal proceedings, repeal/savings and the corresponding CrPC provisions must also be examined.

Section 72 and Insolvency: The Bare Act Still Uses Legacy Insolvency Language

Section 72 expressly contemplates a person being “adjudicated an insolvent”.

It names:

• official assignee;
• official receiver.

Section 72(3) then links those powers to the Presidency-Towns Insolvency Act, 1909 and Provincial Insolvency Act, 1920.

But current insolvency law changed

Section 243 of the Insolvency and Bankruptcy Code, 2016 repealed those two enactments while preserving specified pending proceedings and existing matters through its savings clauses.

This creates an important drafting point:

Do not quote Section 72(3) and automatically assume that every current insolvency is still administered under those repealed enactments.

The correct current enquiry

1. Who is the debtor?
2. Individual, personal guarantor, firm, LLP or company?
3. What insolvency regime applies?
4. Was an old insolvency proceeding saved by Section 243?
5. Who currently controls the estate?
6. Who has statutory authority to litigate?
7. What property is under PMLA restraint?
8. Does any special IBC protection apply?

Corporate Insolvency: Who Protects the Company Property?

Resolution Professional

Section 25 IBC requires the resolution professional to preserve and protect corporate-debtor assets.

The RP can represent and act on behalf of the corporate debtor and exercise its rights in judicial, quasi-judicial and arbitration proceedings.

Therefore where the corporate debtor has:

• a pending Section 8 matter;
• a PMLA Appellate Tribunal appeal;
• a property-release claim;
• another litigation concerning ED attachment;

the RP's statutory authority and the status of company management should be examined immediately.

Liquidator

Section 35 IBC gives the liquidator powers including:

• taking custody/control of corporate-debtor assets;
• protecting and preserving them;
• investigating financial affairs;
• instituting or defending civil or criminal legal proceedings in the name of/on behalf of the corporate debtor;
• signing petitions, affidavits and other documents required for liquidation functions.

Therefore liquidation is not the same thing as:

“Nobody can now defend the attached asset.”

There is ordinarily a statutory insolvency representative whose authority must be mapped to the PMLA proceeding.

IBC Section 32A: When Corporate Insolvency Can Materially Change the PMLA Property Question

Section 32A is one of the most important provisions at the intersection of insolvency and criminal-property enforcement.

Its protection is conditional.

Broadly, where the statutory conditions concerning an approved resolution plan/change in control or qualifying liquidation acquisition are satisfied, Section 32A(2) restricts action against specified corporate-debtor property in relation to an offence committed before commencement of CIRP.

The Explanation expressly says that “action” against property includes:

• attachment;
• seizure;
• retention;
• confiscation.

What Section 32A does NOT mean

CIRP COMMENCED → ALL ED ACTION AUTOMATICALLY ENDS.

That is too broad.

Counsel must check:

• offence date;
• CIRP commencement;
• whether a resolution plan is approved;
• whether control changed;
• identity and eligibility of the acquirer;
• whether the acquirer falls within prohibited categories;
• whether property belongs to the corporate debtor or another person;
• whether the property was acquired through the qualifying resolution/liquidation process.

Individual wrongdoers remain a separate question

Section 32A does not provide blanket personal immunity to former promoters, officers or others who were involved in the offence.

Thus:

CORPORATE-DEBTOR IMMUNITY / PROPERTY PROTECTION

can coexist with:

CONTINUING PERSONAL PROSECUTION OF RESPONSIBLE INDIVIDUALS.

Company Dissolution or Strike-Off: Does the PMLA Case Automatically End?

No universal answer exists because “dissolution” can arise through several legal routes.

Examples include:

• Companies Act strike-off;
• liquidation followed by dissolution;
• voluntary liquidation;
• merger/amalgamation structures;
• dissolution of a firm;
• other entity-specific statutory routes.

Section 72 does not expressly say “dissolution”

Therefore its legal-representative mechanism should not be mechanically applied to every dissolved company as though a company were a deceased natural person.

Companies Act Section 248

Where a company is struck off under Section 248 and dissolved following Gazette publication, the section nevertheless preserves important consequences.

Among other things:

• company assets remain available for payment/discharge of liabilities and obligations even after removal;
• specified liabilities of directors, managers, officers and members continue and may be enforced;
• the Tribunal's power to wind up the company is preserved.

Therefore:

STRIKE-OFF
≠
AUTOMATIC ERASURE OF EVERY PROPERTY OR LIABILITY ISSUE

Section 252 restoration

Section 252 provides statutory routes by which a struck-off company's name may be restored by the Tribunal in specified circumstances.

Depending upon the facts, restoration can become relevant where the dissolved entity needs to prosecute or defend a substantial property proceeding.

The appropriate applicant, limitation, grounds and NCLT relief must be examined under the actual subsection invoked.

Section 70 PMLA: Company Liability and Individual Liability Must Be Separated

Section 70 addresses offences by companies.

Its framework can extend liability to:

• the company;
• persons who were in charge of and responsible for its business, subject to the statutory defence;
• directors/managers/secretaries/other officers where consent, connivance or attributable neglect is proved.

The statutory explanation also clarifies the prosecution of a company within the provision's corporate-liability framework.

Why this matters after insolvency or dissolution

Never combine these into one proposition:

COMPANY IS IN LIQUIDATION → DIRECTOR IS IMMUNE.

or:

DIRECTOR IS ACCUSED → EVERY COMPANY ASSET MUST BE CONFISCATED.

The correct analysis separately examines:

1. company's own legal liability;
2. individual officer's Section 70 / Section 3 liability;
3. ownership of the property;
4. proceeds-of-crime nexus;
5. IBC Section 32A, where applicable;
6. attachment/confiscation status.

Practical Substitution Procedure After Death: What Should Counsel Actually File?

The exact procedural requirements can vary by forum, registry direction and factual posture. The following is therefore a practical litigation package rather than a claim that every item is statutorily mandatory in every case.

For a pending Section 26 Appellate Tribunal appeal

1. IMMEDIATELY INFORM THE TRIBUNAL OF THE DEATH
Do not permit repeated listings in the deceased appellant's name without procedural correction. 2. FILE A SECTION 72 CONTINUATION / SUBSTITUTION APPLICATION
State the death, proprietary interest, relationship and statutory basis for continuation. 3. ANNEX DEATH CERTIFICATE 4. ESTABLISH REPRESENTATIVE STATUS
Depending upon the succession situation: legal-heir material, will/probate, letters of administration, succession-related order or other competent evidence. 5. FILE AMENDED MEMO OF PARTIES 6. FILE AFFIDAVIT AND VAKALATNAMA / AUTHORISATION 7. EXPLAIN THE PROPERTY INTEREST
Identify whether the applicant represents the estate generally or claims a specific share/property. 8. PROVIDE SERVICE TO ED AND OTHER NECESSARY PARTIES 9. SEEK INTERIM PROTECTION IF POSSESSION / DISPOSAL IS THREATENED

What about delay?

For a Tribunal substitution resembling the facts in A.S.V. Krishnam Raju, Section 72 and that judgment should be examined before conceding that the application is barred merely because ninety days passed after death.

But counsel should still act promptly.

A statutory argument against an invented limitation is not a reason to create avoidable procedural delay.

For a High Court appeal

Use Section 72(2) together with:

• Section 42;
• the particular High Court's procedural rules;
• the status of the substantive appeal;
• the applicable substitution procedure.

Do not assume that every Tribunal-specific procedural conclusion automatically governs High Court procedure.

Documents the Estate, Heirs, RP or Liquidator Should Secure Immediately

Death / Status Record Death certificate or insolvency/liquidation/dissolution order. Representation Documents Legal-heir proof, probate, letters of administration, RP/liquidator appointment order or other authority. PAO Complete Section 5 provisional attachment order and property schedule. Section 5(5) Complaint The complaint forming the attachment case before the Adjudicating Authority. Section 8 Papers Notice, reply, exhibits, confirmation order and possession material. Tribunal Appeal Memorandum, interim application, pleadings and current orders. Property Title Chain Sale deed, mutation, inheritance, partition, gift, mortgage and encumbrance history. Source of Funds Bank records, salary/business records, loan, tax returns and payment trail. Will / Succession Material Will, probate, succession certificate where relevant, family settlement or inheritance papers. Corporate Records MCA master data, strike-off notice, NCLT order, CIRP/liquidation order and resolution plan where relevant. IBC Section 32A Material Approved plan, change-of-control evidence, acquirer eligibility and asset-sale documents. Predicate / PMLA Criminal Case FIR, charge-sheet, prosecution complaint and orders affecting the scheduled offence.

Ten Practical Scenarios

Scenario 1 — Owner dies before filing Tribunal appeal

Property attachment has been confirmed.

The owner dies before filing a Section 26 appeal.

Section 72(1) should be examined immediately because it expressly contemplates continuation through the legal representative / applicable insolvency representative in the circumstances specified.

Scenario 2 — Appellant dies during Tribunal appeal

The appeal should not automatically be surrendered as abated without examining Section 72 and A.S.V. Krishnam Raju.

Scenario 3 — Accused dies during PMLA trial

Personal trial against the deceased cannot proceed to punishment in the ordinary sense, but Section 8(7) provides a distinct route for the Special Court to determine confiscation or release of confirmed property.

Scenario 4 — Daughter inherits attached flat

The daughter does not automatically inherit personal guilt.

But the existing property restraint does not disappear solely because title devolved by succession.

She should establish representative/title status and contest the property nexus through the appropriate statutory route.

Scenario 5 — Several heirs inherit different shares

Prepare a succession/share matrix.

Do not allow the proceeding to continue as though the deceased still owns one undivided 100% interest if succession law has changed the estate structure.

At the same time, inherited fractionalisation should not be used to defeat an already subsisting lawful attachment.

Scenario 6 — Company enters CIRP while its factory is attached

The resolution professional should identify the PMLA proceeding, obtain the full attachment record, represent the corporate debtor where authorised and separately assess whether/when Section 32A becomes applicable.

Scenario 7 — Company enters liquidation

The liquidator's Section 35 powers include custody/protection of assets and institution/defence of legal proceedings.

The PMLA proceeding should therefore be integrated into the liquidation litigation strategy.

Scenario 8 — Resolution plan approved with qualifying change of control

Section 32A should be examined property by property.

Do not rely merely upon the existence of a resolution plan; test all statutory conditions and ownership.

Scenario 9 — Company struck off while PMLA property case is pending

Do not assume the property dispute disappeared with the company's name.

Examine Sections 248 and 252 Companies Act, surviving liabilities/assets, representation and whether restoration is required to effectively pursue or defend the proceeding.

Scenario 10 — Deceased was convicted and criminal appeal was pending

Do not use Section 72 alone.

Apply the criminal appellate abatement provision—BNSS Section 435 for proceedings governed by BNSS, or the saved earlier procedural regime where applicable.

The Chronology Every PMLA Succession Case Should Build

Marker	Event	Why It Matters
D0	Alleged scheduled criminal activity	Origin of POC theory
D1	Property acquisition	Direct-source chronology
D2	Section 5 attachment	Property restraint begins
D3	Section 8(3) confirmation	Confirmed-property status
D4	Death / insolvency / CIRP / liquidation / dissolution	Representation changes
D5	LR / RP / liquidator substitution or appearance	Who now protects the interest?
D6	Trial becomes impossible because of death	Section 8(7) may become relevant
D7	Section 8(7) application	Confiscation vs release
D8	Tribunal / High Court appeal	Section 72 continuation rights
D9	Final confiscation, if ordered	Section 9 vesting consequence

Litigation Strategy: Protect the Estate Without Confusing the Legal Questions

1. Identify who died or what entity-status event occurred

Accused?
Property owner?
Appellant?
Respondent?
Director?
Company?
Personal guarantor?

2. Identify the exact property stage

PAO?
Section 8 notice?
Confirmed attachment?
Possession?
Tribunal appeal?
Special Court confiscation issue?

3. Identify the legally competent successor/representative

Legal heir?
Executor?
Administrator?
Resolution Professional?
Liquidator?
Official receiver/assignee in a saved regime?
Restored company?

4. Separate estate defence from criminal defence

Do not unnecessarily adopt the deceased's alleged criminal admissions merely because the estate wants the property released.

The property case should independently address:

• ownership;
• source;
• date;
• POC nexus;
• valuation;
• third-party rights;
• equivalent-value theory.

5. Preserve appeal rights immediately

Obtain the latest Tribunal/High Court order and filing status.

Death is not a reason to allow limitation on a substantive appeal to expire while the family is still collecting succession papers.

6. Consider Section 8(7) proactively

Where trial cannot proceed because of death and property remains under confirmed attachment, determine whether the estate/heir should itself seek an appropriate release order rather than waiting indefinitely.

7. For insolvency, map PMLA and IBC side by side

Prepare:

PMLA EVENT
vs
IBC EVENT

including:

• offence date;
• attachment date;
• insolvency commencement;
• resolution-plan approval;
• change in control;
• liquidation sale;
• Section 32A eligibility.

8. For dissolution, identify the legal route of dissolution

Strike-off and IBC dissolution are not interchangeable.

9. Do not create a sham post-death interest

Succession documentation should reflect the genuine estate position.

Artificial transfers or encumbrances designed merely to defeat confiscation can create serious additional problems.

10. Make the court answer the correct question

After death:

NOT: “Was the deceased a bad person?”

BUT: “Does the material legally establish that this property is liable to confiscation, or is the successor/estate entitled to release?”

AI Search / Featured-Snippet Answers

What happens if a PMLA accused dies during trial?

The deceased cannot personally complete the criminal trial, but Section 8(7) specifically permits the Special Court to determine confiscation or release of qualifying confirmed property after considering the material before it.

Does ED attachment automatically end when the property owner dies?

No. PMLA expressly contains mechanisms allowing the property dispute and related appeals to continue after death.

Can legal heirs continue a PMLA appeal?

Yes, Section 72 expressly allows legal representatives to file or continue specified appeals before the Appellate Tribunal and High Court in the circumstances described by the section.

Is there a 90-day limit for substitution before the PMLA Appellate Tribunal?

In A.S.V. Krishnam Raju, the Andhra Pradesh High Court held that Section 72 prescribes no such LR-application limitation and that the Tribunal could not mechanically import the 90-day CPC/Article 120 limitation in the absence of applicable rules or regulations.

Does a legal heir inherit the deceased person's money-laundering guilt?

Inheritance of property is not itself inheritance of personal criminal culpability. Any Section 3 allegation against the heir must be based on the heir's own legally relevant conduct and the statutory ingredients.

Can inherited property still be confiscated?

Potentially, if the property is legally found liable within the PMLA confiscation framework. Inheritance alone does not erase an existing attachment, but the heir or estate can contest the property's alleged connection with money-laundering.

What happens if a company in a PMLA case enters insolvency?

The resolution professional or liquidator may acquire statutory authority to protect company assets and represent the corporate debtor. The interaction with PMLA must then be analysed together with the IBC, including Section 32A where its specific conditions are satisfied.

Does company strike-off automatically defeat an ED attachment?

No automatic rule says so. Companies Act Section 248 itself preserves assets for liabilities/obligations and specified liabilities after strike-off, while Section 252 provides restoration mechanisms in specified circumstances.

Frequently Asked Questions

Which PMLA section deals specifically with death or insolvency during proceedings?

Section 72 expressly deals with continuation of specified appellate proceedings in the event of death or insolvency.

Which provision deals with property when the accused dies before trial can finish?

Section 8(7) permits the Special Court to determine confiscation or release of qualifying property when the trial cannot be conducted because of death or another reason, or cannot be concluded.

Who can move the Special Court under Section 8(7)?

The provision refers to an application by the Director or a person claiming to be entitled to possession of property in respect of which the relevant Section 8(3) order exists.

Can a daughter or son continue a deceased parent's PMLA property appeal?

A qualifying legal representative can invoke Section 72. Representative status and succession/property interest should be properly documented.

Can an executor under a will continue the case?

The answer depends upon the estate, will, probate/administration requirements and the legal capacity in which the executor represents the deceased's interest. The representative status should be established before the relevant forum rather than assumed.

Does a PMLA Tribunal appeal automatically abate after death?

Section 72 expressly provides for continuation. The Andhra Pradesh High Court in A.S.V. Krishnam Raju rejected dismissal of the property appeal as irretrievably abated on the facts before it.

What if the legal heir applies several years after the death?

A.S.V. Krishnam Raju held that Section 72 itself contained no limitation for the LR continuation application before the Tribunal and rejected mechanical importation of the 90-day CPC rule. Nevertheless, every case should be moved promptly and the latest applicable procedural rules/orders checked.

Does the same rule automatically apply in the High Court?

No such automatic proposition should be made. Section 72(2) allows continuation/fresh appeal by the legal representative in its field, but Section 42 and the relevant High Court's procedural rules must also be examined.

What happens to a pending criminal appeal if the convicted appellant dies?

That issue is governed by criminal appellate law. For BNSS-governed proceedings, Section 435 contains specific abatement rules and a 30-day near-relative leave mechanism in the conviction/imprisonment category described there.

Can ED confiscate property even though there was no completed trial because the accused died?

Section 8(7) expressly creates that possibility, but confiscation is not automatic. The Special Court must consider the material and decide confiscation or release.

Does the heir have a right to be heard regarding the property?

An heir or estate representative claiming entitlement to possession should examine Section 8(7), Section 72 and the procedural stage to assert the relevant property interest with supporting evidence.

Can the heir argue that the property was purchased from lawful funds?

Yes. Title history, acquisition date and source-of-funds evidence remain highly relevant to whether the property is actually involved in money-laundering or otherwise lawfully liable under the attachment/confiscation theory asserted.

Does insolvency automatically release PMLA property?

No. Insolvency requires a separate statutory analysis. In corporate cases the IBC, the status of the RP/liquidator and Section 32A conditions can become particularly important.

Can a liquidator defend an ED/PMLA proceeding?

Section 35 IBC expressly gives a liquidator authority to institute or defend civil or criminal legal proceedings on behalf of the corporate debtor, among other asset-protection functions.

Can a resolution professional represent the company?

Section 25 IBC requires the RP to preserve/protect assets and permits representation of the corporate debtor in judicial and quasi-judicial proceedings.

Does Section 32A automatically apply as soon as CIRP starts?

No. Its statutory conditions concerning the resolution/liquidation transaction, change in control/acquirer and property must be satisfied.

Does dissolution of a company automatically end PMLA liability?

No universal rule applies. The route of dissolution, Companies Act/IBC provisions, property ownership, surviving liabilities, representation and any restoration requirement must be examined.

Can a struck-off company be restored to defend property proceedings?

Section 252 Companies Act provides restoration mechanisms for a struck-off company in specified circumstances. Whether restoration should be sought in a particular PMLA dispute depends upon the facts and procedural necessity.

What is the strongest practical question after the property owner dies?

“Who now legally represents the property interest, what PMLA order presently binds the property, and which statutory forum has power to release or confiscate it?”

Official Legal Sources

• India Code — Prevention of Money-Laundering Act, 2002
• India Code — Insolvency and Bankruptcy Code, 2016
• India Code — Companies Act, 2013
• India Code — Bharatiya Nagarik Suraksha Sanhita, 2023

Related Detailed Research

• 30 Landmark ED and PMLA Judgments in India
• Section 5 PMLA Property Attachment, Adjudication and Appeal

Legal Disclaimer: This is a general legal research and awareness publication and does not constitute case-specific legal advice. Death, insolvency, liquidation, strike-off and dissolution can have materially different consequences depending upon the stage of the PMLA proceeding, type of property, representative status, succession law, insolvency regime, corporate structure, applicable procedural law and current binding precedent. The discussion of legal-heir, estate, RP and liquidator representation is not a substitute for obtaining the exact orders and establishing representative authority before the competent forum. No result regarding substitution, release, confiscation, attachment, restoration, appeal, prosecution or insolvency treatment is guaranteed.

Related Delhi legal guides

PMLA provisional attachment · Adjudicating Authority procedure · PMLA Appellate Tribunal

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