ED Attaches Sukhpal Khaira’s Chandigarh House in Money Laundering Probe

Chandigarh, March 12, 2025 — The Enforcement Directorate (ED) has attached the Chandigarh residence of Punjab Congress MLA Sukhpal Singh Khaira, as part of its ongoing investigation into an international drug trafficking case. The action was taken under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The move comes after the ED identified Khaira’s property as being potentially linked to the proceeds of crime. The attachment is part of the agency’s larger crackdown on money laundering activities and aims to prevent the accused from dissipating or transferring assets during the investigation process.

What Does “Attachment of Property” Mean Under PMLA?

Under the PMLA, “attachment of property” refers to the legal process where the ED can temporarily seize or freeze assets that are suspected to be linked to money laundering or derived from criminal activities. This process is designed to ensure that accused individuals cannot dispose of or hide assets while under investigation.

Legal Basis for Attachment

The legal framework for property attachment is found in Section 5 of the PMLA. The provision allows the ED to provisionally attach assets if there is credible evidence that the property is connected to proceeds of crime or involved in money laundering.

Key Aspects of Property Attachment Under PMLA

1. Provisional Attachment: The ED can issue an attachment order for up to 180 days, preventing the accused from selling, transferring, or hiding assets during the investigation.
2. Confirmation by Adjudicating Authority: The provisional attachment is sent to an adjudicating authority for confirmation. If the authority finds the attachment valid, it is extended. If not, the attachment lapses.
3. Proceeds of Crime: The attached property must be derived directly or indirectly from a scheduled offence such as drug trafficking, corruption, or terrorism, among others.
4. Scope of Property: Both movable and immovable property, including cash, bank accounts, land, and houses, can be attached. Even property owned by third parties may be seized if linked to the crime.
5. Post-Confirmation: Once the attachment is confirmed, it continues during the trial. If the accused is convicted, the government can confiscate the property permanently under Section 8(5) of the PMLA.
6. Rights of Bona Fide Third Parties: Third parties who have legitimate claims over the attached property can seek relief by approaching the adjudicating authority or the courts.

Implications of the ED’s Action

The ED’s attachment of Sukhpal Khaira’s property underscores the agency’s efforts to target money laundering linked to serious crimes such as drug trafficking. While Khaira has not yet been convicted, the attachment of his assets represents a critical step in ensuring that illicit gains are not dissipated during the investigation process.

The action also highlights the broad scope of the PMLA in combating financial crimes and its ability to target assets even if they are held by third parties, ensuring that the law reaches the full extent of criminal networks involved in money laundering.

As the investigation continues, the political and legal implications of the case will unfold, particularly in light of Khaira’s prominent position within the Punjab Congress party.