Under Section 9 of PMLA, when an order of confiscation

Solution

Section 9 of PMLA provides that where an order of confiscation has been made under Section 8(6), all the rights and title in such property shall vest absolutely in the Central Government free from all encumbrances. The expression 'free from all encumbrances' is significant - it means mortgages, pledges, or other charges on the property do not survive confiscation, unless the encumbrance was created genuinely before the offence. However, the proviso to Section 9 empowers the Adjudicating Authority to declare void any encumbrance or leasehold interest created with a view to defeat the provisions of PMLA. Thereafter, under Section 10, the Central Government appoints an Administrator (not below the rank of Joint Secretary) to manage such property.