The Delhi High Court on Thursday stayed till March 11 a single judge’s order that held that if an investigation under the Prevention of Money Laundering Act (PMLA) goes “beyond 365 days” without any proceeding related to the offence, then the Enforcement Directorate has to return the “seized” property to the owner.

In its January 31 order, a single judge bench of the HC had directed the ED to return forthwith documents, digital devices and properties among other material seized from Mahender Kumar Khandelwal, who was appointed the interim resolution professional (IRP) of Bhushan Power and Steel Ltd (BPSL). The ED made the seizure during a search operation on August 19 and 20, 2020.

On Thursday, a division bench of Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora stayed the January order till March 11, the next date of hearing.

The division bench was hearing an appeal moved by the ED against the single judge’s order, which had also ruled that PMLA provisions have to be “reasonably read” in a “harmonious manner”, with other provisions. It said that the power of attachment, seizure and freezing of properties and records is a “draconian provision” which has to be strictly construed, referring to a 2021 judgment of the Supreme Court.