The Supreme Court has permitted real estate conglomerate M3M Group to substitute a provisionally attached property under the Prevention of Money Laundering Act, 2002 (PMLA), subject to stringent conditions prescribed by the Enforcement Directorate (ED).
A bench comprising Justices P.S. Narasimha and R. Mahadevan delivered the order while hearing M3M’s challenge to a Punjab & Haryana High Court ruling that had refused to allow the substitution.
Senior advocate Dr. Abhishek Manu Singhvi, appearing for M3M India Pvt. Ltd. and M3M India Infrastructure Pvt. Ltd., submitted that the companies had agreed to comply with the ED’s proposed conditions. The court, noting the affidavit filed by the petitioners, allowed the substitution but made it expressly conditional.
One of the key conditions mandates that the M3M Group establish “clear and marketable title along with undisputed ownership” of the assets proposed as substitutes, supported by verifiable documentation. The substituted assets must also be free from all encumbrances — including mortgages, liens, pledges, or third-party claims.
Additionally, the company is required to furnish a notarised undertaking stating that the substituted property will not be sold, transferred, or otherwise alienated while proceedings remain pending.
The bench noted: “While we allow the substitution of the property as indicated… the same shall be subject to the conditions.”
