Under the proviso to section 9 of the Prevention of Money-laundering Act, 2002, after declaring the…
Once the Special Court or the Adjudicating Authority declares an encumbrance or lease-hold interest void under the first proviso to s.9, the property vests in the Central…
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Under the proviso to section 9 of the Prevention of Money-laundering Act, 2002, after declaring the encumbrance void, the property shall vest in the Central Government-
Answer and explanation
Correct answer C
Once the Special Court or the Adjudicating Authority declares an encumbrance or lease-hold interest void under the first proviso to s.9, the property vests in the Central Government "free from such encumbrances or lease-hold interest". No compensation is payable; the second proviso only leaves any liability for the encumbrance enforceable by a suit for damages.