In a significant development, a special National Investigation Agency (NIA) court has revoked the attachment of 10 properties previously linked to the banned outfit Popular Front of India (PFI), citing procedural lapses and violation of principles of natural justice.
Special NIA Court Judge P.K. Mohandas set aside the attachment orders issued in 2022 by the Designated Authority under the Unlawful Activities (Prevention) Act (UAPA), which had deemed the properties as “proceeds of terrorism.” The central government had banned PFI in September 2022, alleging its association with global terrorist networks.
The court passed 10 separate orders in response to petitions filed by the property owners, which included private individuals and trusts. In eight of these cases, the judge observed that the owners were not accused in any NIA-registered cases and the available evidence was insufficient to prove that the assets were linked to terrorist activities.
“The impugned order of the Designated Authority is passed without following the principles of natural justice and is liable to be set aside on that ground alone,” the court said. It added that the buildings under attachment in these eight cases did not qualify as “proceeds of terrorism” under the UAPA.
In the remaining two cases — involving properties of the Green Valley Foundation Trust in Malappuram and the Karunya Foundation in Kollam — the court acknowledged that the materials on record prima facie indicated proceeds of terrorism. However, the court still revoked the attachment orders on procedural grounds, stating that the affected parties were not given a reasonable opportunity to be heard.
The court emphasized that the Designated Authority failed to properly comply with the principles of natural justice before concluding that the properties were liable for attachment.
The revocation marks a setback for the investigative agency’s efforts to confiscate assets allegedly linked to the PFI. The NIA has not yet commented on whether it will challenge the special court’s orders.
