Quick Summary: In an important decision, the Bombay High Court announced that a Temporary Asset Freeze Order against Epitome Multitrade Pvt. Ltd. had ended after 180 days. This was based on the rules of the Prevention of Money Laundering Act (PMLA), even though there were arguments about extensions due to COVID-19.
Who’s Involved?
The case involves Mr. Naresh T. Jain and his companies, who challenged the asset freeze order issued by the Directorate of Enforcement (ED). The government of India and other parties were also involved in this legal case.
Timeline of Events:
- 27 November 2020: The asset freeze order was issued.
- 18 December 2020: ED filed a complaint against Mr. Naresh T. Jain.
- 19 June 2021: The High Court paused the asset freeze order.
- 03 September 2021: The Supreme Court stepped in, asking for a quick resolution.
Mr. Naresh T. Jain’s Stand:
Mr. Naresh Jain’s lawyer argued that the asset freeze order should automatically end after 180 days according to the PMLA rules. They referred to past decisions by the Supreme Court and other High Courts to support their argument.
Directorate of Enforcement’s Stand:
The ED argued that the COVID-19 pandemic and related Supreme Court orders extended the time the asset freeze order was valid. They referred to decisions from the Delhi High Court that supported this point of view.
Judges Involved:
The decision was given by Justices M.S. Sonak and Advait M. Sethna on 24 November 2025.
Key Points:
- The court decided that the asset freeze order ended after 180 days, specifically from 26 May 2021.
- The court highlighted that the COVID-19 related extensions did not apply to PMLA timelines.
- The legal proceedings against Mr. Naresh T. Jain can continue, but the asset freeze order is no longer valid.
Legal Precedent:
This decision confirms the strict timelines under the PMLA and makes clear that COVID-19 extensions do not apply to such temporary orders.
Quote from the Judgment:
"The disputed asset freeze order dated 27 November 2020 has ceased to have any effect after 180 days, i.e., from 26 May 2021."
Future Proceedings:
The legal proceedings will continue without the restrictions of the asset freeze order, as per the court’s directive.
This judgment serves as an important reference for similar cases dealing with temporary asset freezes under the PMLA, especially in the context of legal extensions due to the pandemic.
