JAKARTA (April 17): The South Jakarta District Court today ruled that the seizure of the Equanimity, the superyacht reportedly owned by Malaysian financier Jho Low, was invalid and without legal basis.

Singapore's The Straits Times reported that Justice Ratmoho said the seizure should have been carried out "under the reciprocal legal assistance framework as stipulated by the 2006 law, which gives the mandate to the Law and Human Rights Ministry,” and not the police.

"We declare the confiscation by police as invalid and legally baseless," Ratmoho told the hearing.

On Feb 28, acting on a request by the US Federal Bureau of Investigation, Indonesian police seized the 92-metre, Cayman Islands-registered yacht off the resort island of Bali.

The US Department of Justice had earlier alleged that the Equanimity, valued at US$250 million, was among assets purchased by Low Taek Jho, also known as Jho Low, using funds siphoned from 1MDB, The Straits Times reported.

Ratmoho also said there has been no court ruling that the owner of the yacht committed a crime. “(If) there is no (proven) crime, there should not be any confiscation,” he said.

US court documents say that Jho Low, an associate of Malaysian Prime Minister Najib Razak, had no formal role at 1MDB, but had considerable decision-making influence, The Straits Times reported.

Indonesian police had planned to hand over the confiscated yacht to the US authorities after the Feb 28 seizure, but the company claiming legal ownership of the yacht took the matter to court in Indonesia, citing legal flaws.

Andi Simangunsong, a lawyer representing Equanimity Cayman Ltd, told reporters earlier this month that the yacht was not linked to any criminal case in Indonesia, therefore the local police had no authority to seize the vessel, The Straits Times reported.

He added that a reciprocal legal assistance arrangement between Indonesia and a foreign country is possible but it must go through the Law and Human Rights Ministry, not just through the police,

He argued that the handing over of the yacht to the US authorities by the police would constitute a breach of legal procedures.

Soon after the seizure of the superyacht, lawyers for the claimants had filed legal suits in Indonesia and also the US to stop the impounding of the Equanimity.

On April 3, US district judge Dale Fischer in Los Angeles ruled that the superyacht can be sailed from Indonesia to the US where it would be sold.

The judge denied the request by the trusts that hold title to the Equanimity to keep it anchored in Bali while they were challenging the seizure of the vessel, Bloomberg reported.