Now Reading: Madras HC: TANPID property attachment trumps PMLA seizure
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Madras HC: TANPID property attachment trumps PMLA seizure
The Madras High Court ruled that property attachments under the Tamil Nadu Protection of Interests of Depositors Act (TANPID) take precedence over attachments under the Prevention of Money Laundering Act (PMLA). A…
The Madras High Court ruled that property attachments under the Tamil Nadu Protection of Interests of Depositors Act (TANPID) take precedence over attachments under the Prevention of Money Laundering Act (PMLA). A Division Bench of Justices G.R. Swaminathan and V. Lakshminarayanan rejected the Enforcement Directorate's objection to selling assets of Viswapriya (India) Limited, noting that TANPID Section 14 contains a non-obstante clause overriding other laws, while PMLA Section 5 lacks one.
The court observed that 34 of 1,240 depositors had died awaiting relief, mostly senior citizens who invested retirement funds. The Supreme Court had in 2019 stayed PMLA proceedings against company founder R. Subramanian, and in a 2025 judgment held that central laws like SARFAESI cannot override State depositor protection acts. The judges ordered liquidation of five attached properties, directing that depositors see the money within months.
Indian Opinion Analysis
The TANPID Act was enacted in 1997 specifically to protect depositors in Tamil Nadu after a spate of ponzi scheme collapses left thousands without savings. The Supreme Court upheld its constitutional validity in 2011, noting it was a State subject under Entry 30 of the Concurrent List. The judgment now clarifies the hierarchy between a State-level depositor protection law and a central anti-money laundering statute. For the 1,240 depositors of Viswapriya (India) Limited, the ruling paves the way for asset sale proceeds to be distributed among them rather than being held up by ED proceedings. The Division Bench has directed liquidation within months, setting a precedent for similar attachment disputes across other State protection laws.
Source: thehindu.com
This brief was synthesised by AI from the source linked above.
