Petitioners seek quashing of Appellate Tribunal order and de-freezing of pension, gratuity, provident fund, leave encashment and related accounts, arguing they cannot be treated as proceeds of crime.
The Delhi High Court on September 17, 2026, issued notice in a writ petition filed by Santosh Kumar Gupta and another petitioner challenging an order of the Appellate Tribunal under the Prevention of Money Laundering Act, 2002 (PMLA).
The petitioners have sought quashing of the Tribunal’s order dated May 20, 2026, passed in multiple appeals, and have also prayed for directions to the Enforcement Directorate to release and de-freeze their pension, gratuity, provident fund, leave encashment, and other retiral benefit-related accounts and fixed deposits, along with accrued interest.
According to the plea, the retiral dues were wrongfully withheld despite earlier judicial orders, including an order dated May 21, 2018 passed by the Special Judge, CBI Court, Jaipur, and subsequent orders dated May 27, 2024 and May 28, 2025 passed by the Appellate Tribunal. The petitioners contended that pensionary and retiral benefits, being statutory dues, do not constitute “proceeds of crime” under Section 2(1)(u) of the PMLA in the absence of a direct nexus with the scheduled offence.
They further alleged that continued freezing and withholding of these dues violates their fundamental rights under Articles 14, 21 and 300A of the Constitution of India. The petition also seeks a direction to attach alternative properties to the extent of Rs. 35.5 crore, claimed to be the amount allegedly invested with and retained by a co-accused since 2014, and consequential release of the petitioners’ attached properties.
At the initial stage, the High Court did not decide the merits of the dispute. Instead, it issued notice to the respondent Enforcement Directorate, whose counsel accepted notice in court. The Court directed the respondent to file a counter affidavit within four weeks, with liberty to the petitioners to file a rejoinder at least two days before the next hearing.
The matter has been listed for further hearing on December 3, 2026.
Bottom Line :
Prevention of Money Laundering Act, 2002 - Writ petition challenging order of Appellate Tribunal and seeking release/de-freezing of pension, gratuity, provident fund, leave encashment and other retiral benefits - Notice issued - Counter affidavit directed to be filed.
Statutory provision(s):
Prevention of Money Laundering Act, 2002, Section 2(1)(u), Constitution of India, Articles 14, 21, 300A
