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    Question

    What action may the Special Court or Adjudicating

    Authority take regarding encumbrances or lease-hold interests created on property attached under PMLA? 
    A Automatically cancel all encumbrances on the property Correct Answer Incorrect Answer
    B Declare the encumbrance or lease-hold interest void, and vest the property in the Central Government free from such encumbrances Correct Answer Incorrect Answer
    C Permit the encumbrance to remain but restrict its usage Correct Answer Incorrect Answer
    D Transfer the encumbrance to a third party for enforcement Correct Answer Incorrect Answer
    E Release the property from attachment and allow the owner to manage the encumbrances Correct Answer Incorrect Answer

    Solution

    Section 9. Vesting of property in Central Government: Where an order of confiscation has been made under 1[sub-section (5) or sub-section (7) of section 8 or section 58B or sub-section (2A) of section 60] in respect of any property of a person, all the rights and title in such property shall vest absolutely in the Central Government free from all encumbrances: Provided that where the Special Court or the Adjudicating Authority, as the case may be, after giving an opportunity of being heard to any other person interested in the property attached under this Chapter, or seized or frozen under Chapter V, is of the opinion that any encumbrance on the property or or lease-hold interest has been created with a view to defeat the provisions of this Chapter, it may, by order, declare such encumbrance or leasehold interest to be void and thereupon the aforesaid property shall vest in the Central Government free from such encumbrances or lease-hold interest: Provided further that nothing in this section shall operate to discharge any person from any liability in respect of such encumbrances which may be enforced against such person by a suit for damages.

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