The Bombay High Court (HC) has held that the Prevention of Money Laundering Act (PMLA) has an overriding effect over debt recovery laws such as the SARFAESI Act and the Recovery of Debts and Bankruptcy (RDB) Act when it comes to the attachment of “proceeds of crime”, news agency PTI reported.

In a judgment delivered on March 23, the Nagpur bench set aside previous orders of the PMLA Appellate Tribunal, which had favoured banks’ rights to recover debts from attached properties.