Supreme Court Upholds Delhi High Court Verdict on PMLA Provisional Attachment Prior to Chargesheet Filing
The Supreme Court of India recently concluded a critical legal dispute concerning the procedural prerequisites for issuing a Provisional Attachment Order (PAO) under the Prevention of Money Laundering Act, 2002 (PMLA). In the matter of Gautam Khaitan & Anr. Vs Union of India & Anr., the apex court dismissed a Special Leave Petition (SLP) that sought to overturn a prior judgment by the Delhi High Court. The High Court's order, dated 15.11.2025, had validated the enforcement agency's authority to provisionally attach properties even in the absence of a formal chargesheet.
This judicial development reinforces the preventive nature of provisional attachments and clarifies the statutory interpretation of recent legislative amendments affecting money laundering proceedings. The Supreme Court's brief disposition effectively cements the High Court's detailed rationale, maintaining the status quo regarding the Directorate of Enforcement's (ED) powers.
Background of the Dispute
The foundational facts of this litigation trace back to the procurement of 12 AW-101 VVIP helicopters by the Government of India from Agusta Westland. According to the investigative agencies, the original technical specifications for the helicopters mandated a service ceiling of 6,000 metres. The respondents alleged that this requirement was subsequently relaxed to 4,500 metres, a modification that ostensibly allowed Agusta Westland to qualify for the bidding process.
The investigative authorities claimed that this relaxation was accompanied by illegal gratification and kickbacks. As recorded in the judicial proceedings, the alleged illicit funds were routed through various corporate entities, specifically naming IDS India, IDS Tunisia, and Aeromatrix Info Solution Ltd. (AISL).