Motilal Oswal had filed a writ petition challenging the application of provisions of Prevention of Money Laundering Act (PMLA) in the NSEL scam. The petitioner said there was a conflict with fundamental rights of the victims of fraud, guaranteed by Part III of the Constitution of India and takes away the power of courts to deal with the stolen property upon confiscation under the PMLA.
"As per these provisions, if the offence is proved, and it is held that the money or properties attached were proceeds of crime or derived there from or converted from the proceeds of the crime, such attached money or properties are confiscated absolutely.And upon such confiscation, the confiscated money or properties vest absolutely with the central government free from any encumbrance."
The petitioners also pleaded that a comprehensive investigation be carried out by high power committee or an empowered central agency. There are several cases of pending under PMLA in the court where it is not clear as to how the victims of a fraud could get their money back.
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