Gauhati High Court lets firm swap ED-attached land for a Rs 45 lakh fixed deposit

The Gauhati High Court has allowed a Guwahati partnership firm, Global Entrade, to replace two plots of land provisionally attached by the Enforcement Directorate (ED) with a fixed deposit of Rs 45 lakh. In an order dated 4 November 2026, the court allowed the firm's application despite the ED's opposition, subject to strict conditions.

What Happened

The ED had provisionally attached two plots in Sonapur, Kamrup (Metro) district, Assam, under the Prevention of Money Laundering Act (PMLA), valued in the attachment proceedings at Rs 38.4 lakh. According to the ED, the firm is an accused in its prosecution complaint and received Rs 45 lakh connected with proceeds of crime, which it then paid on to another entity. The ED said the plots were attached as property representing the value of that money. The firm says it bought the land in 2016 from independent funds.

The ED argued that the PMLA does not provide for swapping attached property for a fixed deposit. The court agreed that the Act gives no such right, but held that it can regulate the security in a suitable case under Article 226 of the Constitution. It noted that the deposit offered is higher than the value of the plots and covers the whole amount the ED says the firm received.

The firm must deposit Rs 45 lakh with a nationalised bank within four weeks, with an exclusive lien for the ED, and file an affidavit showing the source of the money. The ED may object within two weeks if it finds the money itself is proceeds of crime; otherwise it must release the plots from attachment.

What It Means

The court said it was not ruling on whether the attachment is valid or on the firm's guilt; those questions remain for the connected writ petition and the PMLA proceedings. A provisional attachment must be confirmed by the Adjudicating Authority under the PMLA, and those proceedings are currently stayed by an interim order in the connected writ petition. The court said not everyone whose property is attached is entitled to such a swap; each case turns on its facts.

These are allegations, not findings of guilt; the accused are presumed innocent until proven guilty in court, and due process continues.

Source: High Court judgment