71. The manner and circumstances of issuing restraining order or preservation order

If at any point of time, an Investigation Officer forms reasonable grounds for him to believe and such opinion is endorsed by the Designated Officer that –

A restraining order and a preservation order shall be in the form specified in Schedule II, and Schedule III respectively to this Act.

A restraining order or preservation order shall not include a prohibition on the regular bona-fide use of such property in a manner that may not result in a significant depreciation of its value or otherwise handling such property in a manner that may not defeat the objectives of this Act.

A restraining order and preservation order unless vacated earlier, shall remain in force for a period specified in such order which shall not exceed thirty days.

An Investigation Officer shall for reasons to be recorded, be entitled to extend the operational period of a restraining order or a preservation order for a period of another thirty days at a time on two more occasions, so as not to exceed a total period of such an order to ninety days.

Any restraining order shall require the person to whom such order is imposed not to engage in any activity prohibited by such restraining order, or other activity that would defeat the objectives of this Act being carried out without the approval of the relevant Investigation Officer, unless the same is vacated earlier or a period of thirty days have lapsed since the serving of such restraining order.

Any preservation order shall require the person to whom such order is imposed to take necessary measures so as to preserve the value and present condition of the relevant property in the manner in which it exists and not engage in any activity which may result in the property decaying, getting destroyed or otherwise its value getting depreciated, or engage in any other activity that may defeat the objectives of this Act being carried out without the approval of the relevant Investigation Officer, unless the same is vacated earlier or a period of thirty days have lapsed since the serving of such preservation order.

Where necessary, a restraining order or a preservation order may be issued by an Investigation Officer on any person or institution that is capable of restraining any transaction in respect of or preserving the value of the property suspected to be proceeds of crime, and in which event, it shall be the duty of such person or institution to act in terms of the relevant order.

If the Investigation Officer for reasons to be recorded is satisfied that it shall not be necessary to seize the property in respect of which the restraining order or a preservation order has been issued, he shall directly make an application to the High Court in terms of section 75 for the judicial freezing of the said property.