T

he South Jakarta District Court made a surprise decision on Tuesday, ordering the National Police to return an Equanimity yacht to its owner, saying that the police’s move to seize the US$250 million vessel was unlawful.

Police in Bali seized the yacht, which was moored off the resort island on Feb. 28, following a tip-off from the Federal Bureau of Investigation.

The yacht was reportedly relevant to an investigation into corruption and money laundering in connection to the 1Malaysia Development Berhad (1MDB) case.

In its decision, the South Jakarta District Court ruled in favor of Equanimity (Cayman) Ltd., a Cayman Island-based company, the registered owner of the yacht. The yacht was allegedly bought with money from Jho Low, a former unofficial adviser to 1MDB, whose exact whereabouts are unknown. It was Low who reportedly gave an order to challenge the seizure in court.

“The court declares the seizure of the Equanimity yacht invalid,” the sole judge in the pretrial hearing, Ratmoho, said on Tuesday.

The United States Department of Justice (DoJ) has alleged in civil lawsuits that huge sums of money had been stolen from 1MDB — set up by Prime Minister Najib Razak in a campaign of fraud and money laundering. Najib and the fund deny any wrongdoing.

The suits list $1.7 billion in assets allegedly bought with the stolen funds, which US officials are seeking to recover.

Those assets include the 300-meter yacht purchased by Low.

In his ruling, Ratmoho said the seizure contravened Law No. 1/2006 on mutual legal assistance, which requires foreign institutions to file an official assistance request with the law and human rights minister.

“In this case, the request for the February confiscation was sent by Joseph P. Callahan, the FBI’s legal attache in Jakarta, directly to the head of the National Police’s Criminal Investigation Department [Bareskrim],” Ratmoho said.

The judge also said police had built a new case by seizing the yacht instead of solely providing assistance to the FBI.

Andi Simangunsong, a lawyer representing the plaintiff said he applauded the verdict.

When asked what his client would do regarding the yacht Andi said: “It’s our clients prerogative. There might be further deliberation on the matter.”

Police spokesman Brig. Gen. Setyo Wasisto said authorities would abide by the decision, however could not say when the boat would be returned to Low.

“We need to study the ruling first,” he said as quoted by the Agence France-Presse.

Following, the seizure of Equanimity, a spokesman for Low noted that the DoJ had officially delayed its efforts to seize assets last year.

A US court reportedly granted a stay following a request from authorities, as it believed civil proceedings could affect an ongoing criminal probe.

The spokesman said in a statement in late February that the DoJ had still not taken any steps to prove that impropriety had occurred.

Opposition politicians in Malaysia jumped on the seizure to attack the government.

Senior opposition figure Azmin Ali described the seizure as a milestone in the investigation into 1MDB.

“The failure of Malaysian authorities to act in the cause of justice presents a stark contrast to this bold action by Indonesian authorities who cooperated with the US Department of Justice,” he said in a statement.