Sections 58A-58B and 60-61 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
These four provisions deal with property that is, or is suspected to be, on the other side of a border. Sections 58A and 58B say when property in India is released or confiscated after a criminal case abroad ends. Section 60 covers attachment, seizure and confiscation in a contracting State or in India on a letter of request. Section 61 fixes how every letter of request, summons or warrant is sent.
This article reads them as per the consolidated text of the Act consulted (amendments shown up to 1 August 2019). Later amendments and notifications should be checked. Anyone whose property is the subject of a foreign request can start with FEMA advisory to understand how the Indian and foreign sides connect.
If a criminal case abroad ends and the foreign court finds that the offence of money-laundering has not taken place or the property in India is not involved, the Special Court may release the property on the application of the concerned person or the Director (section 58A). Where the foreign trial cannot be concluded, a letter of request for confiscation or release is forwarded to the Director, who moves the Special Court (section 58B). Section 60 lets the Special Court issue letters of request for property abroad and lets India execute foreign requests, with Chapters III and V of the Act applying to the property.
Section 58A: Special Court to release the property
Section 58A applies where, on closure of the criminal case or conclusion of a trial in a criminal court outside India under the corresponding law of any other country, such court finds that:
- the offence of money-laundering has not taken place; or
- the property in India is not involved in money-laundering.
The Special Court may, on an application moved by the concerned person or the Director, after notice to the other party, order release of such property to the person entitled to receive it. Notice that:
- either the person concerned or the Director may apply;
- the other party must be given notice;
- the word is "may", so release is the Special Court's order, not automatic; and
- the finding it rests on is a finding of the foreign court.
The footnote shows sections 58A and 58B inserted by Act 2 of 2013, s. 24 (w.e.f. 15-2-2013).
Section 58B: letter of request for confiscation or release
The heading prints "confiscation or release the property", with the word "of" missing; it is quoted as printed. The section applies where the trial under the corresponding law of any other country cannot be conducted by reason of:
- the death of the accused;
- the accused being declared a proclaimed offender; or
- any other reason, or having commenced but could not be concluded.
In that case the Central Government shall, on receipt of a letter of request from a court or authority in a contracting State requesting for confiscation or release of property, as the case may be, forward the same to the Director to move an application before the Special Court. Upon such application, the Special Court shall pass appropriate orders regarding confiscation or release of such property involved in the offence of money-laundering.
Compare the two sections:
| Point | Section 58A | Section 58B |
|---|---|---|
| Trigger | Foreign case closed or trial concluded, with a finding of no money-laundering or no involvement of the property | Foreign trial cannot be conducted or could not be concluded |
| Who applies | The concerned person or the Director | The Director, after the Central Government forwards the letter of request |
| What the Special Court does | May order release to the person entitled | Shall pass appropriate orders on confiscation or release |
Section 60: attachment, seizure and confiscation in a contracting State or India
Sub-section (1): property suspected to be abroad
Where the Director has made an order for attachment of property under section 5 or for freezing under sub-section (1A) of section 17, or where an Adjudicating Authority has made an order relating to a property under section 8, or where a Special Court has made an order of confiscation relating to a property under sub-section (5) or sub section (6) of section 8, and such property is suspected to be in a contracting State, the Special Court, on an application by the Director or the Administrator appointed under sub-section (1) of section 10, as the case may be, may issue a letter of request to a court or an authority in the contracting State for execution of such order. (The text prints "sub section" without the hyphen in one place.)
The footnote shows the opening words of this sub-section substituted by Act 2 of 2013, s. 25 (w.e.f. 15-2-2013). For the orders referred to, see our article on section 5 and our article on section 8.
Sub-section (2): request received from a contracting State
Where a letter of request is received by the Central Government from a court or an authority in a contracting State requesting attachment, seizure, freezing or confiscation of the property in India, derived or obtained, directly or indirectly, by any person from the commission of an offence under a corresponding law committed in that contracting State, the Central Government may forward it to the Director, as it thinks fit, for execution in accordance with the provisions of the Act.
Sub-section (2A): confiscation after a foreign finding
Where, on closure of the criminal case or conclusion of trial in a criminal court outside India under the corresponding law of any other country, such court finds that the offence of money-laundering under the corresponding law of that country has been committed, the Special Court shall, on receipt of an application from the Director for execution of confiscation under sub-section (2), order, after giving notice to the affected persons, that such property involved in money-laundering or which has been used for commission of the offence of money-laundering stand confiscated to the Central Government. The footnote shows the sub-section as inserted by Act 2 of 2013, s. 25, and "Special Court" as substituted for "Adjudicating Authority" by Act 20 of 2015, s. 150 (w.e.f. 14-5-2015).
Sub-sections (3) to (5): tracing and identifying
On receipt of a letter of request under section 58 or section 59, the Director shall direct any authority under the Act to take all steps necessary for tracing and identifying such property. Those steps may include any inquiry, investigation or survey in respect of any person, place, property, assets, documents, books of account in any bank or public financial institutions, or any other relevant matters, and shall be carried out in accordance with such directions issued in accordance with the Act. The two terms are defined in section 55; see our article on sections 55 to 58.
Sub-section (6): which Chapters apply
The provisions of the Act relating to attachment, adjudication, confiscation and vesting of property in the Central Government contained in Chapter III, and survey, searches and seizures contained in Chapter V, apply to the property in respect of which a letter of request is received from a court or contracting State for attachment or confiscation.
Sub-section (7): return or compensation
When any property in India is confiscated as a result of execution of a request from a contracting State, the Central Government may either return such property to the requesting State or compensate that State by disposal of such property on mutually agreed terms that take into account deduction for reasonable expenses incurred in investigation, prosecution or judicial proceedings leading to the return or disposal of confiscated property. The footnote shows it as inserted by Act 21 of 2009, s. 12 (w.e.f. 1-6-2009).
Section 61: procedure in respect of letter of request
Every letter of request, summons or warrant received by the Central Government from, and every letter of request, summons or warrant to be transmitted to a contracting State under Chapter IX, shall be transmitted to a contracting State or, as the case may be, sent to the concerned Court in India, and in such form and in such manner as the Central Government may, by notification, specify. The form and manner are not printed in the Act.
Putting the provisions together
| Situation | Provision |
|---|---|
| Foreign case ended, no money-laundering found, property in India | 58A: release on application |
| Foreign trial cannot be concluded; foreign court asks for confiscation or release | 58B: letter to Director, application to Special Court |
| Indian order on property suspected to be abroad | 60(1): letter of request through the Special Court |
| Foreign request to attach, seize, freeze or confiscate property in India | 60(2): forwarded to the Director |
| Foreign finding that money-laundering occurred | 60(2A): confiscation to the Central Government after notice |
| Property confiscated for a foreign State | 60(7): return, or compensation by disposal on agreed terms |
| How requests travel | 61: form and manner by notification |
A worked example
A contracting State's court (invented "Country Z") finds that a company, Orchid Exports Pvt Ltd (invented), laundered money there, and asks India to confiscate a warehouse here that was bought with the proceeds. The Central Government forwards the letter to the Director under section 60(2), and the Director applies to the Special Court. After notice to the affected persons, the Special Court may order confiscation to the Central Government under sub-section (2A). Chapter III and Chapter V then apply to the property (sub-section (6)). Later the Central Government may return the property to Country Z, or compensate it by disposal on agreed terms, taking account of reasonable expenses (sub-section (7)).
In the reverse case, if Country Z's court finds that no money-laundering took place and the property here was not involved, the company or the Director may apply under section 58A for release of the property to the person entitled.
Need help where property is on both sides of a border?
When an Indian attachment touches a foreign asset, or a foreign request touches property here, the order of steps and the notifications for that country decide the plan. Our team supports such files through FEMA advisory, together with the legal team.
Key takeaways
- Section 58A lets the Special Court release property in India after a foreign court finds that no money-laundering occurred or the property is not involved.
- Section 58B routes a foreign request for confiscation or release, where the foreign trial cannot be concluded, through the Central Government and the Director to the Special Court.
- Section 60(1) allows letters of request for property suspected to be in a contracting State.
- Section 60(2) and (2A) deal with foreign requests for attachment, seizure, freezing or confiscation in India.
- Chapters III and V of the Act apply to property that is the subject of a foreign request.
- Section 61 leaves the form and manner of transmission to a notification.
Read next
- Sections 55-58 PMLA: contracting State and letters of request
- Section 59 PMLA: reciprocal arrangements
- Section 8 PMLA: adjudication, confirmation and confiscation
- Attachment and confiscation of property: ED powers
Disclaimer: Based on the consolidated text of the Prevention of Money-laundering Act, 2002 published by the Enforcement Directorate, showing amendments up to Act 23 of 2019 (1 August 2019), and on the Department of Revenue consolidated copy of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 listing amendments up to 19 July 2024, as consulted on 2 October 2026. Later amendments, notifications, other rules and regulator directions should be checked. This article is general information, not legal advice; check the official text before acting.