PMLA 2002 Analysis Notebook

Overview and Purpose

 The Prevention of Money-Laundering Act, 2002 (PMLA) is an Act to prevent
money-laundering and provide for the confiscation of property derived from,
or involved in, money-laundering, and related matters.
 It was enacted by Parliament in the Fifty-third Year of the Republic of India.
 The Act was motivated by the Political Declaration and Global Programme of
Action adopted by the United Nations General Assembly in 1990, and a
Political Declaration adopted in 1998 calling upon Member States to adopt
national money-laundering legislation.
 The Act extends to the whole of India.
 It came into force on July 1, 2005, although different dates may be appointed
for different provisions by the Central Government.
Structure of the Act (Based on Provided Excerpts)
The provided excerpts cover several Chapters of the Act, including:
 Chapter I: Preliminary (Sections 1-2)
 Chapter II: Offence of Money-Laundering (Sections 3-4)
 Chapter III: Attachment, Adjudication and Confiscation (Sections 5-11A)
 Chapter IV: Obligations of Banking Companies, Financial Institutions and
Intermediaries (Sections 12-15)
 Chapter V: Summons, Searches and Seizures, Etc. (Sections 16-24)
 Chapter VI: Appellate Tribunal (Sections 25-42, with specific sections
detailed)
 Chapter VII: Special Courts (Sections 43-47)
 Chapter VIII: Authorities (Sections 48-54)
 Chapter IX: Reciprocal Arrangement for Assistance in Certain Matters and
Procedure for Attachment and Confiscation of Property (Sections 55-61)
 Chapter X: Miscellaneous (Sections 62-75)
 The Schedule
Chapter I: Preliminary
 Section 2: Definitions
o Adjudicating Authority: An Adjudicating Authority appointed under
Section 6(1).
o Appellate Tribunal: The Appellate Tribunal referred to in Section 25.

o Assistant Director: Appointed under Section 49(1).

o Attachment: Prohibition of transfer, conversion, disposition, or

movement of property by an order under Chapter III.
o Authorised person: Defined in Section 2(c) of the Foreign Exchange
Management Act, 1999.
o Banking company: Includes banking companies and co-operative
banks under the Banking Regulation Act, 1949, and any bank/banking
institution referred to in Section 51 of that Act.
o Bench: A Bench of the Appellate Tribunal.

o Beneficial owner: An individual who ultimately owns or controls a

client of a reporting entity or acts on their behalf, including a person
exercising ultimate effective control over a juridical person.
o Chairperson: The Chairperson of the Appellate Tribunal.

o Chit fund company: A company managing, conducting, or

supervising chits as defined in Section 2 of the Chit Funds Act, 1982.
o Client: A person engaged in a financial transaction or activity with a
reporting entity, including a person acting on behalf of the one
engaged in the transaction.
o Corresponding law: Any foreign law corresponding to Act provisions
or dealing with offences in that country corresponding to scheduled
offences.
o Dealer: Defined in Section 2(b) of the Central Sales Tax Act, 1956.

o Deputy Director: Appointed under Section 49(1).

o Director / Additional Director / Joint Director: Appointed under

Section 49(1).
o Financial institution: Defined in Section 45-1 of the RBI Act, 1934,
and includes chit fund companies, housing finance institutions,
authorised persons, payment system operators, non-banking financial
companies, and the Department of Posts.
o Housing finance institution: Defined in Section 2(d) of the National
Housing Bank Act, 1987.
o Intermediary: Includes entities like stock-brokers, share transfer
agents, bankers to an issue, trustees to trust deeds, registrars to an
issue, merchant bankers, underwriters, portfolio managers, investment
advisers, and other securities market intermediaries registered under
the SEBI Act; associations/members under the Forward Contracts
(Regulation) Act; intermediaries registered by PFRDA; and recognised
stock exchanges.
o Investigation: Includes all proceedings under the Act conducted by
the Director or authorised authority for evidence collection.
o Member: A Member of the Appellate Tribunal, including the
Chairperson.
o Money-laundering: Has the meaning assigned in Section 3.

o Non-banking financial company: Defined in Section 45-I of the RBI

Act, 1934.
o Notification: A notification published in the Official Gazette.

o Offence of cross border implications: Conduct outside India

constituting an offence there which would have been a scheduled
offence if committed in India, where proceeds are transferred to India
OR a scheduled offence committed in India where proceeds are
transferred/attempted to be transferred outside India.
o Payment system / Payment system operator: Defined in Section
2(rb).
o Person: Includes an individual, Hindu undivided family, company, firm,
association of persons/body of individuals (incorporated or not),
artificial juridical person, and any agency/office/branch
owned/controlled by the above.
o Person carrying on designated business or profession: Includes
those playing games of chance for cash/kind (including casinos), and
Inspector-General of Registration or other officers designated by the
Central Government.
o Precious metal: Gold, silver, platinum, palladium, or rhodium or other
notified metals.
o Precious stone: Diamond, emerald, ruby, sapphire, or other notified
stones.
o Prescribed: Prescribed by rules made under the Act.

o Proceeds of crime: Any property derived or obtained, directly or

indirectly, from criminal activity relating to a scheduled offence or the
value of such property. Includes property equivalent in value held
within or outside the country if the property is taken/held outside.
 Clarified to include property derived from the scheduled offence AND
property directly/indirectly derived from any criminal activity relatable
to the scheduled offence.
o Property: Property or assets of every description,
corporeal/incorporeal, movable/immovable, tangible/intangible,
including deeds/instruments evidencing title/interest, wherever
located. Clarified to include property of any kind used in the
commission of an offence under the Act or any scheduled offence.
o Real estate agent: Defined in Section 65(88) of the Finance Act,
1994.
o Records: Include records in books, stored in computers, or other
prescribed forms.
o Reporting entity: A banking company, financial institution,
intermediary, or a person carrying on a designated business or
profession.
o Schedule: The Schedule to the Act.

o Scheduled offence: Offences specified in Part A of the Schedule.

Offences specified in Part B if the total value involved is one crore
rupees or more. Offences specified in Part C of the Schedule.
o Special Court: A Court of Session designated as Special Court under
Section 43(1).
o Transfer: Includes sale, purchase, mortgage, pledge, gift, loan, or any
other transfer of right, title, possession, or lien.
o Value: Fair market value of property on the date of acquisition, or date
of possession if acquisition date unknown.
o Reference to other laws: References to enactments/provisions are
construed as references to corresponding laws/provisions in areas
where the original law isn't in force.
Chapter II: Offence of Money-Laundering
 Section 3: Offence of money-laundering
o Any person who directly or indirectly attempts to indulge or knowingly
assists or is knowingly a party or is actually involved in any process or
activity connected with the proceeds of crime, including its
concealment, possession, acquisition, or use, and projecting or
claiming it as untainted property, shall be guilty of the offence of
money-laundering.
 Section 4: Punishment for money-laundering
 o Punishment for the offence is detailed in this section.

o For offences specified under paragraph 2 of Part A of the Schedule

(Narcotics), the maximum imprisonment is extended to ten years
(instead of seven).
Chapter III: Attachment, Adjudication and Confiscation
 Section 5: Attachment of property involved in money-laundering
o The Director or a Deputy Director authorised by the Director may
provisionally attach property for up to one hundred and eighty days
from the order date if they have reason to believe (recorded in
writing) based on material that:
 A person possesses proceeds of crime.
 Such proceeds are likely to be concealed, transferred, or dealt
with in a manner that may frustrate confiscation proceedings.
o Condition for attachment: Generally requires a report forwarded to
a Magistrate under CrPC Section 173 or a complaint filed before a
Magistrate/court for taking cognizance of the scheduled offence, or a
similar report/complaint under a corresponding law of another country.
o Exception to the condition: Property may be attached immediately
if the Director/authorised officer has reason to believe that non-
attachment is likely to frustrate any proceeding under the Act
(reasons recorded in writing).
o Computing the 180-day period: The period during which
proceedings are stayed by the High Court is excluded, plus a further
period not exceeding thirty days from the date the stay is vacated.
o The Director/authorised officer must immediately forward a copy of the
order and material to the Adjudicating Authority in a sealed envelope.
o A complaint stating the facts of attachment must be filed before the
Adjudicating Authority within thirty days of the provisional
attachment.
 Section 6: Adjudicating Authorities, composition, powers, etc.
o Central Government appoints an Adjudicating Authority.

o The Authority consists of a Chairperson and two other Members. At

least one Member each must have experience in law and
administration.
o The jurisdiction may be exercised by Benches. A Bench can have one
or two Members, constituted by the Chairperson.
 o Benches ordinarily sit in New Delhi and other specified places. Central
Government specifies jurisdiction areas for each Bench.
o Chairperson can transfer a Member between Benches.

o Adjudicating Authority has powers to regulate its own procedure.

 Section 7: Staff of Adjudicating Authorities

o Central Government provides officers and employees.

o Staff functions under the general superintendence of the Chairperson.

 Section 8: Adjudication
o Upon receiving a complaint (Section 5(5)) or applications (Section
17(4), 18(10)), if the Adjudicating Authority has reason to believe a
person has committed an offence under Section 3 or is in possession of
proceeds of crime, it issues a notice of not less than thirty days.
o The notice calls upon the person to show cause why the attached,
seized, or frozen properties shouldn't be declared involved in money-
laundering and confiscated. They must indicate sources of
income/assets, provide evidence, and other relevant info.
o Notice must be served on persons holding property on behalf of others
or jointly.
o The Adjudicating Authority considers replies, hears the person and
Director/officer, and takes account of all relevant materials.
o An order is passed recording a finding on whether properties are
involved in money-laundering. Persons claiming the property (if not the
one originally noticed) are also given an opportunity to be heard.
o If property is found involved, the Authority confirms the attachment or
retention/freezing.
o The confirmed attachment/retention/freezing continues during
investigation (up to three hundred and sixty-five days) or the
pendency of proceedings before a court under this Act or
corresponding law in another country. The period stayed by court is
excluded from the 365 days.
o It becomes final after a confiscation order is passed by the Special
Court.
o After confirmation, the Director/authorised officer shall forthwith
take possession of the attached property or frozen property under
Section 17(1A). If taking possession of frozen property isn't practicable,
the confiscation order has the same effect as if possession was taken.
 o At the conclusion of a trial under the Act, the Special Court orders
confiscation to the Central Government if money-laundering is found to
have been committed and the property was involved or used for the
offence.
o The Special Court orders release of property if money-laundering has
not taken place or the property is not involved.
o If the trial cannot be concluded (death, proclaimed offender, etc.), the
Special Court, on application, passes appropriate orders for
confiscation or release of the property involved.
o The Special Court may consider a claimant's request for restoration of
property during the trial.
 Section 9: Vesting of property in Central Government
o When a confiscation order is made by the Special Court (Section 8(5),
8(7), 58B, or 60(2A)), all rights and title in the property vest
absolutely in the Central Government free from all
encumbrances.
o The Special Court or Adjudicating Authority can declare encumbrances
or lease-hold interests void if created to defeat the Act's provisions.
 Section 10: Management of properties confiscated
o Central Government appoints Administrators (not below rank of Joint
Secretary) to manage confiscated properties.
o The Administrator receives and manages property re which an order
under Section 8(5), 8(6), 8(7), 58B, or 60(2A) was made.
o The Administrator also disposes of property vested in the Central
Government under Section 9 as directed by the Central Government.
 Section 11: Power regarding summons, production of documents and
evidence
o The Adjudicating Authority has the same powers as a civil court for:
discovery and inspection; enforcing attendance (including
banking/financial institution/company officers) and examining on oath;
compelling record production; receiving evidence on affidavits; issuing
commissions; and other prescribed matters.
o Summoned persons must attend, state the truth, and produce
documents.
o Proceedings under this section are deemed judicial proceedings.

 Section 11A: Verification of identity by Reporting Entity

 o Every Reporting Entity must verify client and beneficial owner
identity.
o Methods include: Aadhaar authentication (mandatory for banking
companies, others with notification); offline Aadhaar verification; use of
passport; or other notified valid documents/modes.
o If using Aadhaar authentication, reporting entities must provide other
identification modes.
o Central Government can notify additional safeguards.

Chapter IV: Obligations of Reporting Entities

 Section 12: Reporting entity to maintain records
o Every reporting entity must:

 Maintain records of all transactions (attempted or executed) to

reconstruct individual transactions.
 Furnish information on certain transactions (nature, value
prescribed) to the Director within a prescribed time.
 Maintain identity records of clients and beneficial owners,
account files, and business correspondence.
o Information maintained, furnished, or verified shall be kept
confidential (unless otherwise provided by law).
o Transaction records must be maintained for five years from the
transaction date.
o Identity/account records must be maintained for five years after the
business relationship ends or account is closed.
o Central Government may exempt reporting entities from obligations
under this Chapter.
 Section 12A: Access to information
o The Director may request records (Section 11A, 12(1), 12AA(1)) and
additional necessary information from any reporting entity for Act
purposes.
o Reporting entities must furnish such information within the specified
time and manner.
o Information sought by the Director must be kept confidential (unless
otherwise provided by law).
 Section 12AA: Enhanced due diligence
 o Every reporting entity must perform enhanced due diligence prior
to specified transactions.
o Due diligence includes:

 Verifying identity by Aadhaar authentication (or prescribed

process if not entitled).
 Taking additional steps to examine ownership, financial position,
and sources of funds.
 Recording the purpose of the transaction and intended nature of
the relationship.
o If the client fails to meet these conditions, the reporting entity shall
not allow the specified transaction.
o If a transaction is considered suspicious or likely to involve proceeds of
crime, the reporting entity must increase future monitoring of the
business relationship, including greater scrutiny of transactions.
o Information from enhanced due diligence is maintained for five years
from the transaction date.
o Specified transaction includes cash withdrawals/deposits above a
prescribed amount, foreign exchange transactions above a prescribed
amount, high value imports/remittances, and other prescribed
transactions (in interest of revenue or high risk of
money-laundering/terrorist financing).
 Section 13: Powers of Director to impose fine
o The Director can conduct inquiries regarding reporting entity
obligations under this Chapter.
o Director may direct a reporting entity to get records audited by a
Central Government empaneled accountant, with expenses borne by
the Central Government.
o If a reporting entity, designated director, or employee fails to comply,
the Director may:
 Issue a written warning.
 Direct compliance with specific instructions.
 Direct reports on measures taken at prescribed intervals.
 Impose a monetary penalty of not less than ten thousand
rupees but up to one lakh rupees for each failure.
 Section 14: No civil or criminal proceedings
 o Reporting entities, their directors, and employees are not liable to
civil or criminal proceedings for furnishing information under
Section 12(1)(b), except as provided in Section 13.
 Section 15: Procedure and manner of furnishing information
o The Central Government (in consultation with RBI) may prescribe the
procedure and manner for reporting entities to maintain and furnish
information under Section 11A, 12(1), and 12AA(1).
Chapter V: Summons, Searches and Seizures, Etc.
 Section 16: Power of survey
o An authority (Director or authorised officer), having reason to believe
(recorded in writing) an offence under Section 3 has been committed,
may enter any place where the act is carried on.
o Powers during survey include: requiring facility to inspect records;
check proceeds of crime/transactions; furnish relevant information.
o "Place" includes where records/property related to the act are kept.

o Authority must immediately forward a copy of recorded reasons and

material to the Adjudicating Authority after the survey.
o Authority can mark records, make copies/extracts, make inventory of
property, and record statements.
 Section 17: Search and seizure
o The Director or a Deputy Director authorised by him, having reason
to believe (recorded in writing) based on information that a person:
 Has committed money-laundering.
 Is in possession of proceeds of crime.
 Is in possession of records relating to money-laundering.
 Is in possession of any property related to crime.
o May authorise a subordinate officer to:

 Enter and search places where records/proceeds are suspected

to be kept.
 Break open locks if keys aren't available.
 Seize any record or property found.
 Place identification marks or make copies of records/property.
 Make inventory.
 Examine on oath any person in possession/control.
 o If seizure is not practicable, the officer may order freezing of the
property/record.
o The authorised authority must immediately forward a copy of recorded
reasons and material to the Adjudicating Authority after
search/seizure/freezing order.
o An authority finding evidence during a Section 16 survey, and satisfied
it's likely to be concealed/tampered, can search and seize the evidence
at that place without separate authorisation (reasons recorded).
o An application requesting retention of seized property/record or
continuation of freezing must be filed before the Adjudicating Authority
within thirty days of seizure/freezing.
 Section 18: Search of persons
o An authorised authority having reason to believe (recorded in
writing) a person has secreted record/proceeds on their person or in
their possession/control, which may be useful for proceedings, may
search that person and seize such record/property.
o Authority must immediately forward copy of recorded reasons and
material to the Adjudicating Authority after search/seizure.
o A person about to be searched can require the search to be made in
the presence of two or more witnesses.
o A female shall only be searched by a female.

o A list of seized items is prepared and signed by witnesses.

o A statement of the searched person is recorded.

o An application for retention of seized record/property must be filed

before the Adjudicating Authority within thirty days of seizure.
 Section 19: Power to arrest
o The Director, Deputy Director, Assistant Director, or other
authorised officer, having reason to believe (recorded in writing)
based on material that a person has been guilty of an offence
punishable under this Act, may arrest such person.
o The arrested person must be immediately informed of the grounds
for arrest.
o The officer must immediately forward a copy of the arrest order and
material to the Adjudicating Authority in a sealed envelope.
o Every arrested person must be taken to a Special Court or
Judicial/Metropolitan Magistrate having jurisdiction within twenty-
four hours (excluding journey time).
 Section 20: Retention of property
o Seized property (Section 17/18) or frozen property (Section 17(1A))
may be retained/remain frozen for adjudication (Section 8) for up to
one hundred and eighty days from seizure/freezing, if the
authorised officer has reason to believe it is required (reason
recorded).
o The officer must immediately forward the retention/freezing order and
material to the Adjudicating Authority.
o Property is returned after 180 days unless the Adjudicating Authority
permits further retention/freezing.
o Adjudicating Authority must be satisfied property is prima facie
involved in money-laundering to permit extended retention/freezing.
o Director/authorised officer can withhold release for ninety days from
receipt of a confiscation/release order (Section 8(5)-(7), 58B, or 60(2A))
if the property is relevant for appeal proceedings.
 Section 21: Retention of records
o Seized records (Section 17/18) or frozen records (Section 17(1A)) may
be retained/remain frozen for inquiry under the Act for up to one
hundred and eighty days from seizure/freezing, if the Investigating
Officer or authorised officer has reason to believe they are required.
o The person from whom records were seized/frozen is entitled to
obtain copies.
o Records are returned after 180 days unless the Adjudicating Authority
permits further retention/freezing.
o Adjudicating Authority must be satisfied records are required for
adjudication (Section 8) to permit extended retention/freezing.
o Adjudicating Authority directs release after a confiscation or release
order (Section 8(5)-(7), 58B, 60(2A)).
o Director/authorised officer can withhold release for ninety days from
receipt of an Adjudicating Authority release order (Section 21(5)) if the
record is relevant for appeal proceedings.
 Section 22: Presumption as to records or property
o Where records/property are seized (Section 17/18) or found in
possession/control of a person believed to have committed money-
laundering or a scheduled offence, it is presumed:
 The records/property belong to that person.
 The contents of records are true.
  Signatures/handwriting in records are those of the purported
person.
o Records from outside India, duly authenticated as prescribed, are
presumed true regarding handwriting/signature and are admissible in
evidence.
 Section 23: Presumption in inter-connected transactions
o If money-laundering involves two or more inter-connected
transactions, and one or more are proven to be involved, it shall be
presumed that the remaining transactions are part of such inter-
connected transactions, unless proved otherwise to the satisfaction of
the Adjudicating Authority or Special Court. This presumption applies
for adjudication, confiscation, or trial of the money-laundering offence.
 Section 24: Burden of proof
o In any proceeding relating to proceeds of crime under this Act:

 For a person charged with the offence of money-

laundering under Section 3, the Authority or Court shall,
unless the contrary is proved, presume that such proceeds
of crime are involved in money-laundering.
 For any other person, the Authority or Court may presume
that such proceeds of crime are involved in money-laundering.
Chapter VI: Appellate Tribunal
 Section 25: Appellate Tribunal - Reference only
 Section 26: Appeal to Appellate Tribunal - Reference only
 Section 35: Procedure and powers of Appellate Tribunal
o The Appellate Tribunal is not bound by the Code of Civil
Procedure, 1908, but is guided by the principles of natural justice.
o It has powers to regulate its own procedure, subject to other Act
provisions.
o It has the same powers as a civil court for: summoning persons;
requiring discovery/production of documents; receiving evidence on
affidavits; requisitioning public records; issuing commissions; reviewing
decisions; dismissing representations for default; setting aside ex parte
orders; and other prescribed matters.
o Orders are executable as a civil court decree or can be transmitted to
a civil court for execution.
 o Proceedings before the Appellate Tribunal are deemed judicial
proceedings, and the Tribunal is deemed a civil court for certain
purposes.
 Section 36: Distribution of business amongst Benches - Reference only
 Section 39: Right of appellant to take assistance of authorised
representative - Reference only
Chapter VII: Special Courts
 Section 43: Special Courts
o Central Government, in consultation with the High Court Chief Justice,
designates Courts of Session as Special Courts for trial of Section 4
offences.
o A Special Court trying an offence under this Act shall also try any
other offence the accused may be charged with at the same trial under
the CrPC.
 Section 44: Offences triable by Special Courts
o Notwithstanding the CrPC:

 An offence under Section 4 and any scheduled offence

connected to it are triable by the Special Court for the area.
 A Special Court can take cognizance of an offence under
Section 3 upon a complaint by an authorised authority,
without the accused being committed to it for trial.
 If investigation concludes with no money-laundering offence
requiring a complaint, the authority submits a closure report
to the Special Court.
 If the court taking cognizance of the scheduled offence is
different from the Special Court taking cognizance of the money-
laundering complaint, the former shall commit the scheduled
offence case to the Special Court on application by the
authorised authority, and the Special Court handles it from that
stage.
 Special Courts trying scheduled offences or money-laundering
offences hold trial according to the CrPC as it applies to a Court
of Session.
o Clarifications: Special Court jurisdiction for PMLA offence is not
dependent on orders regarding the scheduled offence. Trial of both
offences by the same court is not construed as joint trial. The
complaint can include subsequent complaints based on further
investigation.
 o This section does not affect the special powers of the High Court
regarding bail under CrPC Section 439.
 Section 45: Offences to be cognizable and non-bailable
o Notwithstanding the CrPC, no person accused of an offence under
this Act shall be released on bail unless:
 The Public Prosecutor has opportunity to oppose the bail
application.
 The Court is satisfied there are reasonable grounds for
believing the accused is not guilty and is not likely to
commit any offence while on bail.
o This proviso (requiring PP opportunity and court satisfaction) does not
apply to persons under sixteen years, women, or those who are sick or
infirm.
o The Special Court shall only take cognizance of a Section 4 offence
upon a written complaint by the Director or an authorised
Central/State Government officer.
o No police officer shall investigate an offence under this Act unless
authorised by the Central Government.
o Offences under this Act are cognizable and non-bailable, and
authorised officers can arrest without warrant, subject to Section 19
conditions and Section 45 conditions.
 Section 46: Application of Code of Criminal Procedure, 1973
o The provisions of the CrPC apply to arrest, search and seizure,
attachment, confiscation, investigation, prosecution, and all other
proceedings under this Act, insofar as they are not inconsistent with
the Act's provisions. (Note: The source states this under Section 65,
but Section 46 heading is present). Self-correction: I should refer to
Section 65 for the actual text regarding CrPC application.
 Section 47: Appeal and revision
o The High Court may exercise powers conferred by CrPC Chapters
XXIX/XXX as if a Special Court were a Court of Session.
Chapter VIII: Authorities
 Section 48: Authorities under Act
o Classes of authorities: Director/Additional/Joint Director, Deputy
Director, Assistant Director, and other appointed officers.
 Section 49: Appointment and powers of authorities
 o Central Government appoints authorities.

o Central Government may authorise Director/other specified ranks to

appoint officers below Assistant Director.
o Authorities exercise powers/duties subject to Central Government
conditions/limitations.
 Section 50: Powers of authorities regarding summons, production of
documents and to give evidence, etc.
o The Director has the same powers as a civil court for Section 13
inquiries: discovery/inspection; enforcing attendance (including
reporting entity officers) and examining on oath; compelling records
production; receiving evidence on affidavits; issuing commissions;
other prescribed matters.
o Specified officers (Director, Additional Director, Joint Director, Deputy
Director, Assistant Director) can summon any person to give evidence
or produce records during investigation or proceeding.
o Summoned persons must attend, state the truth, and produce
documents.
o Proceedings under Section 50(2) and (3) are deemed judicial
proceedings.
o Officers may impound and retain records for a period, subject to
rules. Assistant/Deputy Director must record reasons for impounding
and need Joint Director approval for retention exceeding three months.
 Section 51: Jurisdiction of authorities
o Authorities exercise powers/functions according to Central
Government directions.
o Directions can consider territorial area, classes of persons/cases, or
other criteria.
 Section 52: Power of Central Government to issue directions
o Central Government can issue orders, instructions, and directions to
authorities for proper administration.
o Directions cannot require an authority to decide a specific case
in a particular manner or interfere with Adjudicating Authority
discretion.
 Section 53: Empowerment of certain officers
o Central Government may empower a Central/State Government officer
(rank not below Director, or lower if Director/above unavailable) to act
as an authority.
  Section 54: Certain officers to assist in inquiry, etc.
o Various officers and others are empowered and required to assist
the authorities in enforcing the Act, including officers from Customs,
Central Excise, NDPS, Income-tax, specified stock exchange
members/officers, specified professional bodies' members/officers,
officers of certain body corporates, and other specified
Central/State/local government or reporting entity officers.
Chapter IX: Reciprocal Arrangement for Assistance
 Section 55: Definitions
o Contracting State: Any country outside India with which Central
Government has agreements (treaty or otherwise).
o Identifying: Includes proving property was derived from, or used in
Section 3 offence.
o Tracing: Determining nature, source, disposition, movement, title, or
ownership of property.
 Section 56: Agreements with foreign countries
o Central Government can enter agreements with foreign governments
for enforcing the Act, exchanging information for
prevention/investigation of offences under this Act or corresponding
laws. Provisions for implementing agreements can be made by
notification.
 Section 57: Letter of request to a contracting State
o During investigation/proceedings, the Investigating Officer or superior
officer can apply to a Special Court for a letter of request to a
contracting State court/authority if evidence is needed and available
there.
o Special Court, if satisfied, can issue a letter requesting the contracting
State to examine facts, take specified steps, and forward evidence.
o Evidence received under a letter of request is deemed collected during
investigation.
 Section 58: Assistance to a contracting State
o Central Government receiving a letter of request from a contracting
State for investigation or forwarding evidence may forward it to a
Special Court or authority under the Act for execution.
 Section 58A: Special Court to release the property
o If a criminal court outside India, after closing a case or concluding a
trial under corresponding law, finds that money-laundering did not
 occur or property in India was not involved, the Special Court in India
may order release of such property to the entitled person on
application after notice.
 Section 58B: Letter of request for confiscation or release the
property
o If a trial under corresponding law outside India cannot be concluded
(due to death, proclaimed offender, etc.), Central Government
receiving a request for confiscation/release of property forwards it to
the Director to apply to the Special Court, which passes appropriate
orders.
 Section 59: Reciprocal arrangements for processes and assistance
for transfer of accused persons
o A Special Court can request processes (summons, warrants) be
transmitted to a contracting State for execution.
o A Special Court receiving processes from a contracting State shall
cause them to be served/executed as if from another Indian court.
Persons arrested are dealt with per Section 19; things found in search
per Sections 17/18. Documents/things are forwarded to the requesting
court.
o Conditions may be imposed for the transfer of prisoners to or from a
contracting State.
 Section 60: Attachment, seizure and confiscation, etc., of property in
a contracting State or India
o If property subject to attachment/freezing/order/confiscation under this
Act is in a contracting State, the Special Court can issue a letter of
request for action.
o Central Government receiving a request from a contracting State
regarding property in India forwards it to the Director/authority for
execution.
o If a trial outside India concludes that money-laundering under that
country's law was committed, the Special Court shall, on Director's
application after notice, order confiscation of property in India involved
in money-laundering to the Central Government.
o Director/authority takes steps for tracing/identifying property on
receiving a request (Section 58/59). These steps may include inquiry,
investigation, or survey.
o Act provisions on attachment, adjudication, confiscation, vesting,
survey, search, seizure apply to property re which a request from a
contracting State is received.
 o When property in India is confiscated based on a request from a
contracting State, Central Government may return it or compensate
the State through disposal on mutually agreed terms.
 Section 61: Procedure in respect of letter of request
o Letters of request, summons, or warrants to/from contracting States
shall be transmitted/sent in the form and manner specified by the
Central Government.
Chapter X: Miscellaneous
 Section 62: Punishment for vexatious search
o Any authority/officer conducting search without recorded reasons or
detaining/searching/arresting a person without recorded reasons is
liable for imprisonment (up to two years) or fine (up to fifty thousand
rupees) or both.
 Section 63: Punishment for false information or failure to give
information, etc.
o Wilfully giving false information causing arrest/search is punishable
with imprisonment (up to two years) or fine (up to fifty thousand
rupees) or both.
o Refusal to answer questions when legally bound, refusal to sign a
statement, or failure to attend summons (Section 50) is punishable
with a penalty of five hundred to ten thousand rupees for each
default/failure.
o An opportunity of being heard must be given before imposing such a
penalty.
o Intentional disobedience of a direction under Section 50 is also liable to
proceedings under IPC Section 174.
 Section 64: Cognizance of offences
o No court shall take cognizance of offences under Section 62 or Section
63(1) except with the previous sanction of the Central
Government.
o Central Government decides sanction within ninety days.

 Section 65: Code of Criminal Procedure, 1973 to apply

o The provisions of the CrPC apply to arrest, search and seizure,
attachment, confiscation, investigation, prosecution, and other
proceedings insofar as they are not inconsistent with the Act's
provisions.
 Section 66: Disclosure of information
 o The Director or specified authority may furnish information received
under the Act to officers/authorities performing functions under laws
relating to tax, duty, cess, foreign exchange, NDPS, or other laws
specified by the Central Government (in public interest).
o If the Director/authority believes provisions of any other law have
been contravened based on information, they shall share that
information with the concerned agency for necessary action.
 Section 67: Bar of suits in civil courts
o No suit shall be brought in any civil court to set aside or modify any
proceeding/order under this Act.
o No prosecution, suit, or other proceeding shall lie against the
Government or any officer for anything done or intended in good faith
under this Act.
 Section 68: Notice, etc., not to be invalid on certain grounds
o Notices, summons, orders, documents, or proceedings under the Act
are not invalid merely due to mistake, defect, or omission if they are
in substance and effect in conformity with the Act's intent and purpose.
 Section 69: Recovery of fine or penalty
o Unpaid fine or penalty (Section 13 or 63) is recoverable as arrears of
land revenue.
 Section 70: Offences by companies
o When a contravention occurs by a company, the person in charge of
the business and responsible to the company, as well as the company
itself, are deemed guilty and liable.
o Such person is not liable if they prove the contravention was without
their knowledge or that they exercised due diligence.
o If the contravention is due to consent, connivance, or neglect by a
director, manager, secretary, or other officer, they are also deemed
guilty and liable.
o "Company" includes a firm or association of individuals. "Director" (for
a firm) means a partner.
o A company may be prosecuted regardless of whether an individual is
prosecuted or convicted.
 Section 71: Act to have overriding effect
o The provisions of this Act shall have effect notwithstanding
anything inconsistent therewith contained in any other law for
the time being in force.
  Section 72A: Inter-ministerial Co-ordination Committee
o Central Government may constitute a committee for inter-
departmental/agency co-ordination for operational/policy cooperation,
consultation among stakeholders, development/implementation of
anti-money laundering/countering terrorist financing policies, and
other matters.
 Section 73: Power to make rules
o Central Government may make rules to carry out Act provisions.

o Rules can cover specific matters like: record keeping format,

provisional attachment manner, Adjudicating Authority details,
management of confiscated property, Adjudicating Authority/authority
civil court powers, transaction information, enhanced due diligence
procedures, reporting intervals, furnishing information procedure,
search/seizure rules, material maintenance, arrest order maintenance,
retention/freezing records, records from outside India, appeal
forms/fees, conditions for police investigation (Section 45(1A)),
impounding/custody of records, etc..
 Section 74: Rules to be laid before Parliament
o Rules made under the Act must be laid before each House of
Parliament and are subject to modification or annulment by
Parliament.
 Section 75: Power to remove difficulties
o Central Government may make orders to remove difficulties in
implementing the Act, provided they are not inconsistent with the Act's
provisions. This power is limited to two years from the Act's
commencement. Orders must be laid before Parliament.

The Schedule
 Lists the scheduled offences referred to in the definition of "scheduled
offence" (Section 2(y)).
 Part A: Lists specific sections from numerous Acts, including the Indian Penal
Code, NDPS Act, Explosive Substances Act, UAPA, Arms Act, Prevention of
Corruption Act, Customs Act (Section 135), SEBI Act, Companies Act (Section
447), and many others.
 Part B: Lists offences from the Customs Act (Section 132). These are
scheduled offences if the total value involved is one crore rupees or more.
 Part C: Refers to offences of cross border implications that are specified
in Part A, or offences against property under Chapter XVII of the Indian
 Penal Code, or the offence of wilful attempt to evade
tax/penalty/interest under Section 51 of the Black Money Act, 2015.
This notebook provides a structured analysis of the key provisions found in the
provided excerpts of the PMLA, 2002.

Drawing on the provided excerpts from the Prevention of Money-Laundering Act,

2002 (PMLA), here is information that can be useful for a practicing advocate:
The PMLA, 2002 (Act No. 15 of 2003) was enacted to prevent money-laundering,
provide for the confiscation of property derived from or involved in money-
laundering, and address related matters. The Act extends to the whole of India.
Key Concepts and Definitions
Understanding the definitions is fundamental for legal practice under this Act:
 Money-Laundering: Defined in Section 3, it means whoever directly or
indirectly attempts to indulge or knowingly assists or knowingly is a party or
is actually involved in any process or activity connected with the proceeds of
crime, including its concealment, possession, acquisition or use, and
 projecting or claiming it as untainted property. This definition includes
instances where a person is directly or indirectly enjoying the proceeds of
crime by its concealment, possession, acquisition, use, or projecting or
claiming it as untainted property.
 Proceeds of Crime: Means any property derived or obtained, directly or
indirectly, by any person as a result of criminal activity relating to a
scheduled offence or the value of any such property. This includes property
derived or obtained not only from the scheduled offence but also any
property which may directly or indirectly be derived or obtained as a result of
any criminal activity relatable to the scheduled offence.
 Property: Means any property or assets of every description, whether
corporeal or incorporeal, movable or immovable, tangible or intangible, and
includes deeds and instruments evidencing title to, or interest in, such
property or assets, wherever located. It also includes property of any kind
used in the commission of an offence under this Act or any of the scheduled
offences.
 Scheduled Offence: Refers to the offences specified under Part A, Part B (if
the total value involved is one crore rupees or more), or Part C of the
Schedule. Examples from Part A include various sections under the Indian
Penal Code, the Narcotic Drugs and Psychotropic Substances Act, the
Unlawful Activities (Prevention) Act, the Prevention of Corruption Act, and
others.
 Reporting Entity: Defined as a banking company, financial institution,
intermediary, or a person carrying on a designated business or profession.
Examples include banking companies, financial institutions (including chit
fund companies, housing finance institutions, authorised persons, payment
system operators, non-banking financial companies, and the Department of
Posts), intermediaries (like stock-brokers, merchant bankers, portfolio
managers, etc.), and persons carrying on designated businesses or
professions (like casinos, Inspector-General of Registration, real estate
agents, dealers in precious metals, etc.).
 Adjudicating Authority: An authority appointed by the Central Government
under Section 6 to exercise jurisdiction, powers, and authority conferred by
the Act.
 Special Court: A Court of Session designated as a Special Court under
Section 43.
The Offence and Punishment
 The offence of money-laundering is committed by anyone involved in the
process or activity connected with proceeds of crime.
 The punishment for money-laundering is rigorous imprisonment for a term of
not less than three years, which may extend to seven years, and a fine. If the
 proceeds of crime relate to an offence specified under paragraph 2 of Part A
of the Schedule (Offences under the Narcotic Drugs and Psychotropic
Substances Act), the maximum imprisonment can extend to ten years.
Attachment, Adjudication, and Confiscation (Chapter III)
 Provisional Attachment: The Director or an officer not below the rank of
Deputy Director, if they have reason to believe (recorded in writing) that a
person possesses proceeds of crime likely to be concealed, transferred, or
dealt with to frustrate confiscation proceedings, may provisionally attach
property for up to one hundred and eighty days. An attachment order
requires a report forwarded to a Magistrate under section 173 CrPC or a
complaint filed for the scheduled offence, or a similar report/complaint under
a corresponding foreign law. However, immediate attachment is permitted if
the officer believes non-attachment would frustrate proceedings under the
Act. The period of attachment excludes time stayed by the High Court and
allows a further period not exceeding thirty days from the vacation of stay.
 Adjudication Process: Upon receiving a complaint regarding the provisional
attachment, the Adjudicating Authority can serve a notice (at least thirty
days) on the person concerned, requiring them to disclose the sources of
income/assets used to acquire the attached/seized/frozen property and show
cause why it should not be declared involved in money-laundering and
confiscated. Notice must also be served on anyone holding the property on
behalf of the person, and jointly held property requires notice to all joint
holders.
 Adjudication Order: After considering replies, hearing parties, and
reviewing material, the Adjudicating Authority makes an order finding
whether properties are involved in money-laundering.
 Confirmation of Attachment/Retention/Freezing: If the Adjudicating
Authority finds property is involved in money-laundering, they confirm the
provisional attachment or retention/freezing of seized/frozen property by
written order. This confirmed status continues during investigation (up to
three hundred and sixty-five days) or the pendency of proceedings
before a court under the Act or corresponding foreign law. The confirmation
becomes final after a confiscation order is passed by the Special Court.
 Taking Possession: Once the provisional attachment is confirmed, the
Director or authorised officer shall forthwith take possession of the attached
or frozen property.
 Confiscation by Special Court: At the conclusion of a trial under the Act, if
the Special Court finds the offence of money-laundering committed, it orders
confiscation of the property involved to the Central Government.
 Release by Special Court: If the Special Court finds the offence did not
occur or the property is not involved, it orders release of the property to the
entitled person.
  Confiscation/Release in Other Circumstances: If the trial cannot be
concluded due to death, the accused being a proclaimed offender, or other
reasons, the Special Court can pass appropriate orders for confiscation or
release of the property involved, based on an application.
 Restoration to Claimants: Where property is confiscated, the Special Court
may direct the Central Government to restore it or part thereof to a claimant
with a legitimate interest who suffered a quantifiable loss, provided the
claimant acted in good faith, took reasonable precautions, and is not involved
in money-laundering. The Special Court may consider such claims during the
trial.
 Vesting of Property: Confiscated property vests in the Central Government.
Any encumbrance or leasehold interest on property subject to confiscation
may be declared void by the Adjudicating Authority, causing the property to
vest in the Central Government free from such interests.
 Management of Confiscated Property: The Central Government appoints
Administrators to receive and manage confiscated property. Administrators
also take measures to dispose of property vested in the Central Government.
Powers of Authorities (Chapter VIII and others)
 Adjudicating Authority Powers: For purposes of the Act, the Adjudicating
Authority has powers of a civil court regarding discovery and inspection,
enforcing attendance (including banking/financial institution officers),
compelling record production, receiving evidence on affidavits, and issuing
commissions. Persons summoned are bound to attend, state the truth, and
produce documents. Proceedings are deemed judicial proceedings. The
Adjudicating Authority is not bound by the Civil Procedure Code but guided by
natural justice and regulates its own procedure.
 Authorities under the Act: Include the Director, Additional Director, Joint
Director, Deputy Director, Assistant Director, and other officers appointed by
the Central Government.
 Director's Powers: The Director, Additional Director, Joint Director, Deputy
Director, or Assistant Director have the power to summon any person whose
attendance is necessary for investigation or proceedings to give evidence or
produce records. Summoned persons are bound to attend, state the truth,
and produce documents. These proceedings are deemed judicial
proceedings. Officers may impound and retain records, with specific limits for
Assistant/Deputy Directors requiring approval. The Director can also make
inquiries regarding reporting entities' obligations and impose fines for failure
to comply.
 Power of Survey: An authority with reason to believe an offence under
Section 3 has occurred may enter a place where such activity is carried on,
require inspection of records, checking/verification of proceeds of
 crime/transactions, and furnishing of relevant information. The authority
forwards reasons for belief and material to the Adjudicating Authority.
 Search and Seizure: The Director or officer not below Deputy Director rank,
with reason to believe (recorded in writing) that a person has committed
money-laundering, possesses proceeds of crime, possesses records related to
money-laundering, or possesses property related to a scheduled offence, may
authorise any officer to conduct a search of building/place and seize
records/property, place marks of identification, make inventory, and examine
persons on oath. If seizure is not practicable, property may be frozen.
Reasons and material must be forwarded to the Adjudicating Authority. An
application for retention of seized/frozen property/records must be filed
before the Adjudicating Authority.
 Search of Persons: An authority may search any person in a place entered
under search powers if there is reason to believe they have records or
proceeds of crime. Procedures for searching a person, including requirement
to be taken before a Gazetted Officer or Magistrate if requested and calling
for witnesses, are specified. Female searches must be by a female.
 Power to Arrest: If the Director, Deputy Director, Assistant Director, or
other authorised officer has reason to believe (recorded in writing) based on
material in their possession that a person is guilty of an offence under the
Act, they may arrest that person and inform them of the grounds. The arrest
order and material must be forwarded to the Adjudicating Authority. The
arrested person must be taken before a Special Court, Judicial Magistrate, or
Metropolitan Magistrate within twenty-four hours (excluding travel time).
Retention of Property and Records
 Property Retention: Seized or frozen property may be retained or
continued to be frozen by the authorised officer for up to one hundred and
eighty days for adjudication purposes. The order and material must be
forwarded to the Adjudicating Authority. Property must be returned after this
period unless the Adjudicating Authority permits further retention/freezing.
The Adjudicating Authority must be satisfied the property is prima facie
involved in money-laundering and required for adjudication under section 8
before permitting retention/freezing beyond 180 days. After a confiscation
order, property not involved in money-laundering is released. Release of
property ordered by the Special Court or Adjudicating Authority may be
withheld by the Director for ninety days if relevant for appeal proceedings.
 Records Retention: Seized or frozen records may be retained or continued
to be frozen by the Investigating Officer or authorised officer for up to one
hundred and eighty days for inquiry purposes. The person is entitled to
copies of the records. Records must be returned after this period unless the
Adjudicating Authority permits further retention/freezing. The Adjudicating
Authority must be satisfied the records are required for adjudication under
section 8 before permitting retention/freezing beyond 180 days. After a
 confiscation or release order, records are released. Release of records
ordered by the Adjudicating Authority may be withheld by the Director for
ninety days if relevant for appeal proceedings.
Presumptions
 Presumption as to Records: Records produced and authenticated during
proceedings under the Act before the Special Court, Appellate Tribunal, or
Adjudicating Authority are presumed to be in the handwriting/signed by the
purported person and are admissible in evidence.
 Presumption in Inter-connected Transactions: If money-laundering
involves interconnected transactions and one or more are proven to be
involved in money-laundering, the remaining interconnected transactions are
presumed to be part of it, unless proven otherwise to the satisfaction of the
Adjudicating Authority or Special Court.
 Burden of Proof: In proceedings related to proceeds of crime:
o Against a person charged with the offence of money-laundering under
section 3, the Authority or Court shall, unless the contrary is
proved, presume that such proceeds of crime are involved in
money-laundering.
o Against any other person, the Authority or Court may presume that
such proceeds of crime are involved in money-laundering. This places
a significant burden on the accused to prove their innocence regarding
the proceeds of crime.
Appellate Tribunal (Chapter VI)
 Constitution and Appeals: The Appellate Tribunal constituted under a
different Act serves as the Appellate Tribunal for PMLA appeals. The Director
or any person aggrieved by an Adjudicating Authority order may appeal. A
reporting entity aggrieved by a Director's order under Section 13 may also
appeal.
 Procedure and Powers: Appeals must be filed within forty-five days
(extendable for sufficient cause). The Appellate Tribunal is not bound by the
Civil Procedure Code but guided by natural justice and regulates its own
procedure. It has civil court powers for summoning, document production,
receiving evidence, requisitioning public records, issuing commissions,
reviewing decisions, dismissing/setting aside defaults/ex parte orders, etc..
Its orders are executable as civil court decrees. Proceedings are deemed
judicial proceedings.
 Appeal to High Court: Any person aggrieved by a decision or order of the
Appellate Tribunal may appeal to the High Court.
Special Courts (Chapter VII)
  Designation: The Central Government, in consultation with the Chief Justice
of the High Court, can designate Courts of Session as Special Courts to try
offences under the Act.
 Jurisdiction: Special Courts try offences under the Act. A Special Court may
take cognizance of an offence under section 3 upon a complaint made by an
authorised authority, without the accused being committed to it for trial. If a
court trying the scheduled offence is different from the Special Court taking
cognizance of the money-laundering complaint, the scheduled offence case
shall be committed to the Special Court upon application. The Special Court
trying both offences shall hold trial according to CrPC as it applies to a Court
of Session.
 Clarification on Jurisdiction: The jurisdiction of the Special Court while
dealing with an offence under the Act is not dependent upon orders passed in
respect of the scheduled offence. Trying both sets of offences by the same
court is not joint trial. The complaint may include subsequent complaints
based on further investigation.
 Bail: Notwithstanding anything contained in the Code of Criminal
Procedure, no person accused of an offence under this Act shall be released
on bail or on their own bond unless the Public Prosecutor has had an
opportunity to oppose, and where opposed, the court is satisfied there are
reasonable grounds for believing the accused is not guilty and unlikely to
commit an offence while on bail. Exemptions exist for persons under 16,
women, the sick or infirm, or those accused of money-laundering less than
one crore rupees, who may be released on bail if the Special Court directs.
 Cognizance of Offences: The Special Court shall not take cognizance of any
offence punishable under section 4 except upon a written complaint by the
Director or an authorised officer of the Central or State Government.
 Application of CrPC: Save as otherwise provided in the Act, CrPC provisions
(including bail/bonds) apply to proceedings before a Special Court, which is
deemed a Court of Session.
 Appellate and Revision Powers: The High Court may exercise powers
conferred by Chapters XXIX (Appeals) or XXX (Reference and Revision) of the
CrPC as if a Special Court were a Court of Session.
Obligations of Reporting Entities (Chapter IV)
 Reporting entities (banking companies, financial institutions, intermediaries,
designated businesses/professions) have obligations under the Act [11A, 12,
12A, 12AA, 27].
 Verification of Identity: Reporting entities must verify the identity of
clients and beneficial owners using methods like Aadhaar authentication (for
banking companies), offline Aadhaar verification, passport, or other notified
documents [11A, 67, 68, 69]. Other verification methods must be available
 even if Aadhaar authentication is offered [11A, 70, 71]. Using identification
modes is voluntary, and services cannot be denied for lack of an Aadhaar
number [11A, 71]. Core biometric information or Aadhaar number should not
be stored if Aadhaar is used [11A, 72].
 Enhanced Due Diligence: Prior to specified transactions (cash
withdrawal/deposit above a limit, foreign exchange transactions above a
limit, high value imports/remittances, or other notified transactions),
reporting entities must verify client identity (potentially using Aadhaar
authentication with conditions), examine ownership and financial position
(including sources of funds), and record the purpose of the transaction and
intended relationship [12AA, 75, 76, 77, 78, 79]. Failure to meet these
conditions means the transaction is not allowed [12AA, 77]. If a transaction is
suspicious or likely involves proceeds of crime, future monitoring of the client
relationship must be increased [12AA, 77, 78]. Information from enhanced
due diligence must be maintained for five years [12AA, 78].
 Record Maintenance: Reporting entities must maintain records of
transactions (for five years from the transaction date) and records evidencing
client/beneficial owner identity and account files/business correspondence
(for five years after the relationship ends or account is closed).
 Furnishing Information: Reporting entities must furnish information to the
Director [12, 12A, 15, 74, 75, 83, 84, 85].
 Confidentiality: Information maintained, furnished, or verified, except as
provided by law, must be kept confidential. Information sought by the
Director must also be kept confidential [12A, 75].
 Immunity: Reporting entities, their directors and employees are not liable to
civil or criminal proceedings for furnishing information under Section 12(1)(b).
Miscellaneous Provisions
 Overriding Effect: The provisions of the Act have effect notwithstanding
anything inconsistent in any other law.
 Reciprocal Arrangements: The Central Government can enter agreements
with foreign countries for enforcing the Act, exchanging information, and
providing assistance. Procedures exist for letters of request from Special
Courts to foreign states for evidence and for receiving requests from foreign
states for investigation or execution of attachment/confiscation orders [58,
58B, 60, 152, 154, 155, 160, 161]. Property confiscated as a result of a
request from a contracting state may be returned or compensated for.
Reciprocal arrangements also exist for processes and assistance for transfer
of accused persons.
 Disclosure of Information: The Director or authorised authority may
furnish information obtained under the Act to other tax, duty, foreign
exchange, anti-narcotics, or other notified authorities for them to perform
 their functions. If the Director believes another law is contravened, they shall
share information with the concerned agency.
 Bar of Suits: No civil court has jurisdiction over matters empowered to the
Director, Adjudicating Authority, or Appellate Tribunal by the Act. No suit or
proceeding lies against the Government or officers acting in good faith under
the Act.
This overview highlights the procedural, substantive, and jurisdictional aspects of
the PMLA, 2002, as outlined in the provided excerpts, which are particularly
relevant for legal practitioners dealing with cases under this Act.