(1) This Act may be called the Prevention of MoneylaunderingAct, 2002.

(2) It extends to the whole of India.

(3) It shall come into force on such date1 as the Central Government may, by notification in theOfficial Gazette, appoint, and different dates may be appointed for different provisions of this Act andany reference in any such provision to the commencement of this Act shall be construed as a reference tothe coming into force of that provision.

1. 1st July, 2005, vide notification No. G.S.R. 436(E), dated 1st July, 2005, see Gazette of India, Extraordinary, Part II, sec. 3(i).

(1) In this Act, unless the context otherwise requires,--

(a) "Adjudicating Authority" means an Adjudicating Authority appointed under sub-section (1)of section 6;

(b) "Appellate Tribunal" means the Appellate Tribunal 1[referred to in] section 25;

(c) "Assistant Director" means an Assistant Director appointed under sub-section (1) of section49;

(d) "attachment" means prohibition of transfer, conversion, disposition or movement of propertyby an order issued under Chapter III;

2[(da) "authorised person" means an authorised person as defined in clause (c) of section 2 of theForeign Exchange Management Act, 1999 (42 of 1999);]

(e) "banking company" means a banking company or a co-operative bank to which the BankingRegulation Act, 1949 (10 of 1949) applies and includes any bank or banking institution referred to insection 51 of that Act;

(f) "Bench" means a Bench of the Appellate Tribunal;

3[(fa)"beneficial owner" means an individual who ultimately owns or controls a client of areporting entity or the person on whose behalf a transaction is being conducted and includes a personwho exercises ultimate effective control over a juridical person;]

(g) "Chairperson" means the Chairperson of the Appellate Tribunal;

(h) "chit fund company" means a company managing, conducting or supervising, as foreman,agent or in any other capacity, chits as defined in section 2 of the Chit Funds Act, 1982 (40 of 1982);

4[(ha)"client" means a person who is engaged in a financial transaction or activity with a reportingentity and includes a person on whose behalf the person who engaged in the transaction or activity, isacting;]

(i) "co-operative bank" shall have the same meaning as assigned to it in clause (dd) of section 2of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961);

4[(ia)corresponding law means any law of any foreign country corresponding to any of theprovisions of this Act or dealing with offences in that country corresponding to any of the scheduledoffences;

(ib)"dealer" has the same meaning as assigned to it in clause (b) of section 2 of the CentralSales Tax Act, 1956 (74 of 1956);]

(j) "Deputy Director" means a Deputy Director appointed under sub-section (1) of section 49;

5

(k) "Director" or "Additional Director" or "Joint Director" means a Director or AdditionalDirector or Joint Director, as the case may be, appointed under sub-section (1) of section 49;

6[(l) "financial institution" means a financial institution as defined in clause (c) of section 45-1 ofthe Reserve Bank of India Act, 1934 (2 of 1934) and includes a chit fund company, a housing financeinstitution, an authorised person, a payment system operator, a non-banking financial company andthe Department of Posts in the Government of India;]

(m) "housing finance institution" shall have the meaning as assigned to it in clause (d) of section2 of the National Housing Bank Act, 1987 (53 of 1987);

7[(n) "intermediary" means,--

(i) a stock-broker, sub-broker, share transfer agent, banker to an issue, trustee to a trust deed,registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser or anyother intermediary associated with securities market and registered under section 12 of theSecurities and Exchange Board of India Act, 1992 (15 of 1992); or

(ii) an association recognised or registered under the Forward Contracts (Regulation) Act,1952 (74 of 1952) or any member of such association; or

(iii) intermediary registered by the Pension Fund Regulatory and Development Authority; or

(iv) a recognised stock exchange referred to in clause (f) of section 2 of the SecuritiesContracts (Regulation) Act, 1956 (42 of 1956);]

8[(na)"investigation" includes all the proceedings under this Act conducted by the Director or byan authority authorised by the Central Government under this Act for the collection of evidence;]

(o) "Member" means a Member of the Appellate Tribunal and includes the Chairperson;

(p) "money-laundering" has the meaning assigned to it in section 3;

(q) "non-banking financial company" shall have the same meaning as assigned to it in clause (f)of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934)9;

(r) "notification" means a notification published in the Official Gazette;

10[(ra) "offence of cross border implications", means--

(i) any conduct by a person at a place outside India which constitutes an offence at that placeand which would have constituted an offence specified in Part A, Part B or Part C of theSchedule, had it been committed in India and if such person 11[transfers in any manner] theproceeds of such conduct or part thereof to India; or

(ii) any offence specified in Part A, Part B or Part C of the Schedule which has beencommitted in India and the proceeds of crime, or part thereof have been transferred to a placeoutside India or any attempt has been made to transfer the proceeds of crime, or part thereof fromIndia to a place outside India.

Explanation.--Nothing contained in this clause shall adversely affect any investigation,enquiry, trial or proceeding before any authority in respect of the offences specified in Part A orPart B of the Schedule to the Act before the commencement of the Prevention of Moneylaundering(Amendment) Act, 2009 (21 of 2009);

(rb)"payment system" means a system that enables payment to be effected between a payer and abeneficiary, involving clearing, payment or settlement service or all of them.

Explanation.--For the purposes of this clause, "payment system" includes the systemsenabling credit card operations, debit card operations, smart card operations, money transferoperations or similar operations;

(rc) "payment system operator" means a person who operates a payment system and such personincludes his overseas principal.

Explanation.--For the purposes of this clause, "overseas principal" means,--

(A) in the case of a person, being an individual, such individual residing outside India, whoowns or controls or manages, directly or indirectly, the activities or functions of payment systemin India;

(B) in the case of a Hindu undivided family, Karta of such Hindu undivided family residingoutside India who owns or controls or manages, directly or indirectly, the activities or functionsof payment system in India;

(C) in the case of a company, a firm, an association of persons, a body of individuals, anartificial juridical person, whether incorporated or not, such company, firm, association ofpersons, body of individuals, artificial juridical person incorporated or registered outside India orexisting as such and which owns or controls or manages, directly or indirectly, the activities orfunctions of payment system in India;]

(s) "person" includes--

(i) an individual,

(ii) a Hindu undivided family,

(iii) a company,

(iv) a firm,

(v) an association of persons or a body of individuals, whether incorporated or not,

(vi) every artificial juridical person not falling within any of the preceding sub-clauses, and

(vii) any agency, office or branch owned or controlled by any of the above persons mentionedin the preceding sub-clauses;

12[(sa) "person carrying on designated business or profession" means,--

(i) a person carrying on activities for playing games of chance for cash or kind, and includessuch activities associated with casino;

(ii) a Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908(16 of 1908), as may be notified by the Central Government;

(iii) real estate agent, as may be notified by the Central Government;

(iv) dealer in precious metals, precious stones and other high value goods, as may be notifiedby the Central Government;

(v) person engaged in safekeeping and administration of cash and liquid securities on behalfof other persons, as may be notified by the Central Government; or

(vi) person carrying on such other activities as the Central Government may, by notification,so designate, from time to time;

(sb)"precious metal" means gold, silver, platinum, palladium or rhodium or such other metal asmay be notified by the Central Government;

(sc)"precious stone" means diamond, emerald, ruby, sapphire or any such other stone as may benotified by the Central Government;]

(t) "prescribed" means prescribed by rules made under this Act;

(u) "proceeds of crime" means any property derived or obtained, directly or indirectly, by anyperson as a result of criminal activity relating to a scheduled offence or the value of any such property13[or where such property is taken or held outside the country, then the property equivalent in valueheld within the country] 14[or abroad];

(v) "property" means any property or assets of every description, whether corporeal orincorporeal, movable or immovable, tangible or intangible and includes deeds and instrumentsevidencing title to, or interest in, such property or assets, wherever located;

12Explanation.--For the removal of doubts, it is hereby clarified that the term "property" includesproperty of any kind used in the commission of an offence under this Act or any of the scheduledoffences;

(va) "real estate agent" means a real estate agent as defined in clause (88) of section 65 of theFinance Act, 1994 (32 of 1994);]

(w) "records" include the records maintained in the form of books or stored in a computer or suchother form as may be prescribed;

12[(wa) "reporting entity" means a banking company, financial institution, intermediary or aperson carrying on a designated business or profession;]

(x) "Schedule" means the Schedule to this Act;

(y) "scheduled offence" means--

(i) the offences specified under Part A of the Schedule; or

15[(ii) the offences specified under Part B of the Schedule if the total value involved in suchoffences is 16[one crore rupees] or more; or

(iii) the offences specified under Part C of the Schedule.]

(z) "Special Court" means a Court of Session designated as Special Court under sub-section (1) ofsection 43;

(za) "transfer" includes sale, purchase, mortgage, pledge, gift, loan or any other form of transferof right, title, possession or lien;

(zb) "value" means the fair market value of any property on the date of its acquisition by anyperson, or if such date cannot be determined, the date on which such property is possessed by suchperson.

(2) Any reference, in this Act or the Schedule, to any enactment or any provision thereof shall, inrelation to an area in which such enactment or such provision is not in force, be construed as a referenceto the corresponding law or the relevant provisions of the corresponding law, if any, in force in that area.

1. Subs. by Act 28 of 2016, s. 232, for "established under" (w.e.f. 1-6-2016).

2. Ins. by Act 21 of 2009, s. 2 (w.e.f. 1-6-2009).

3. Ins. by Act 2 of 2013, s. 2 (w.e.f. 15-2-2013).

4. Ins. by Act 2 of 2013, s. 2 (w.e.f. 15-2-2013).

5. Clause (ja) omitted by s. 2, ibid. (w.e.f. 15-2-2013).

6. Subs. by s. 2, ibid., for clause (l) (w.e.f. 15-2-2013).

7. Subs. by s.2, ibid., for clause (n) (w.e.f. 15-2-2013).

8. Ins. by Act 20 of 2005, s. 2 (w.e.f. 1-7-2005).

9. The words "and includes a person carrying on designated business or profession" omitted by Act 2 of 2013, s. 2(w.e.f. 15-2-2013).

10. Ins. by Act 21 of 2009, s. 2 (w.e.f. 1-6-2009).

11. Subs. by Act 2 of 2013, s. 2, for "remits" (w.e.f. 15-2-2013).

12. Ins. by Act 2 of 2013, s. 2 (w.e.f. 15-2-2013).

13. Ins. by Act 20 of 2015, s. 145 (w.e.f. 14-5-2015).

14. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018).

15. Subs. by Act 21 of 2009, s. 2, for sub-clause (ii) (w.e.f. 1-6-2009).

16. Subs. by Act 20 of 2015, s. 145, for "thirty lakh rupees" (w.e.f. 14-5-2015).

Whosoever directly or indirectly attempts to indulge orknowingly assists or knowingly is a party or is actually involved in any process or activity connected withthe 1[proceeds of crime including its concealment, possession, acquisition or use and projecting orclaiming] it as untainted property shall be guilty of offence of money-laundering.

1. Subs. by Act 2 of 2013, s. 3, for "proceeds of crime and projecting" (w.e.f. 15-2-2013).

Whoever commits the offence of money-laundering shallbe punishable with rigorous imprisonment for a term which shall not be less than three years but whichmay extend to seven years and shall also be liable to fine1:

Provided that where the proceeds of crime involved in money-laundering relates to any offencespecified under paragraph 2 of Part A of the Schedule, the provisions of this section shall have effect as iffor the words "which may extend to seven years", the words "which may extend to ten years" had beensubstituted.

1. The words "which may extend to five lakh rupees" omitted by s. 4, ibid. (w.e.f. 15-2-2013).

1[(1)Where the Director or any otherofficer not below the rank of Deputy Director authorised by the Director for the purposes of thissection, has reason to believe (the reason for such belief to be recorded in writing), on the basis ofmaterial in his possession, that--

(a) any person is in possession of any proceeds of crime; and

(b) such proceeds of crime are likely to be concealed, transferred or dealt with in any mannerwhich may result in frustrating any proceedings relating to confiscation of such proceeds of crimeunder this Chapter,

he may, by order in writing, provisionally attach such property for a period not exceeding one hundredand eighty days from the date of the order, in such manner as may be prescribed:

Provided that no such order of attachment shall be made unless, in relation to the scheduled offence, areport has been forwarded to a Magistrate under section 173 of the Code of Criminal Procedure, 1973(2 of 1974), or a complaint has been filed by a person authorised to investigate the offence mentioned inthat Schedule, before a Magistrate or court for taking cognizance of the scheduled offence, as the case may be, or a similar report or complaint has been made or filed under the corresponding law of any othercountry:

Provided further that, notwithstanding anything contained in 2[first proviso], any property of anyperson may be attached under this section if the Director or any other officer not below the rank ofDeputy Director authorised by him for the purposes of this section has reason to believe (the reasons forsuch belief to be recorded in writing), on the basis of material in his possession, that if such propertyinvolved in money-laundering is not attached immediately under this Chapter, the non-attachment of theproperty is likely to frustrate any proceeding under this Act.]

3Provided also that for the purposes of computing the period of one hundred and eighty days, theperiod during which the proceedings under this section is stayed by the High Court, shall be excluded anda further period not exceeding thirty days from the date of order of vacation of such stay order shall becounted.];

(2) The Director, or any other officer not below the rank of Deputy Director, shall, immediately afterattachment under sub-section (1), forward a copy of the order, along with the material in his possession,referred to in that sub-section, to the Adjudicating Authority, in a sealed envelope, in the manner as maybe prescribed and such Adjudicating Authority shall keep such order and material for such period as maybe prescribed.

(3) Every order of attachment made under sub-section (1) shall cease to have effect after the expiry ofthe period specified in that sub-section or on the date of an order made under 4[sub-section (3)] of section8, whichever is earlier.

(4) Nothing in this section shall prevent the person interested in the enjoyment of the immovableproperty attached under sub-section (1) from such enjoyment.

Explanation.--For the purposes of this sub-section, "person interested", in relation to any immovableproperty, includes all persons claiming or entitled to claim any interest in the property.

(5) The Director or any other officer who provisionally attaches any property under sub-section (1)shall, within a period of thirty days from such attachment, file a complaint stating the facts of suchattachment before the Adjudicating Authority.

1. Subs. by s. 5, ibid., for sub-section (1) (w.e.f. 15-2-2013).

2. Subs. by Act 20 of 2015, s. 146, for "clause (b)" (w.e.f. 14-5-2015).

3. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018).

4. Subs. by s. 208, ibid., for "sub-section (2)" (w.e.f. 19-4-2018).

(1) The Central Government shall, bynotification, appoint 1[an Adjudicating Authority] to exercise jurisdiction, powers and authority conferredby or under this Act.

(2) An Adjudicating Authority shall consist of a Chairperson and two other Members:

Provided that one Member each shall be a person having experience in the field of law,administration, finance or accountancy.

(3) A person shall, however, not be qualified for appointment as Member of an AdjudicatingAuthority,--

(a) in the field of law, unless he--

(i) is qualified for appointment as District Judge; or

(ii) has been a member of the Indian Legal Service and has held a post in Grade I of thatservice;

(b) in the field of finance, accountancy or administration unless he possesses such qualifications,as may be prescribed.

(4) The Central Government shall appoint a Member to be the Chairperson of the AdjudicatingAuthority.

(5) Subject to the provisions of this Act,--

(a) the jurisdiction of the Adjudicating Authority may be exercised by Benches thereof;

(b) a Bench may be constituted by the Chairperson of the Adjudicating Authority with one or twoMembers as the Chairperson of the Adjudicating Authority may deem fit;

(c) the Benches of the Adjudicating Authority shall ordinarily sit at New Delhi and at such otherplaces as the Central Government may, in consultation with the Chairperson, by notification, specify;

(d) the Central Government shall, by notification, specify the areas in relation to which eachBench of the Adjudicating Authority may exercise jurisdiction.

(6) Notwithstanding anything contained in sub-section (5), the Chairperson may transfer a Memberfrom one Bench to another Bench.

(7) If at any stage of the hearing of any case or matter it appears to the Chairperson or a Member thatthe case or matter is of such a nature that it ought to be heard by a Bench consisting of two Members, thecase or matter may be transferred by the Chairperson or, as the case may be, referred to him for transfer,to such Bench as the Chairperson may deem fit.

(8) The Chairperson and every Member shall hold office as such for a term of five years from the dateon which he enters upon his office:

Provided that no Chairperson or other Member shall hold office as such after he has attained the ageof 2[sixty-five] years.

(9) The salary and allowances payable to and the other terms and conditions of service of the Membershall be such as may be prescribed:

Provided that neither the salary and allowances nor the other terms and conditions of service of theMember shall be varied to his disadvantage after appointment.

(10) If, for reasons other than temporary absence, any vacancy occurs in the office of the Chairpersonor any other Member, then, the Central Government shall appoint another person in accordance with theprovisions of this Act to fill the vacancy and the proceedings may be continued before the AdjudicatingAuthority from the stage at which the vacancy is filled.

(11) The Chairperson or any other Member may, by notice in writing under his hand addressed to theCentral Government, resign his office:

Provided that the Chairperson or any other Member shall, unless he is permitted by the CentralGovernment to relinquish his office sooner, continue to hold office until the expiry of three months fromthe date of receipt of such notice or until a person duly appointed as his successor enters upon his officeor until the expiry of his term of office, whichever is the earliest.

(12) The Chairperson or any other Member shall not be removed from his office except by an ordermade by the Central Government after giving necessary opportunity of hearing.

(13) In the event of the occurrence of any vacancy in the office of the Chairperson by reason of hisdeath, resignation or otherwise, the senior-most Member shall act as the Chairperson of the Adjudicating Authority until the date on which a new Chairperson, appointed in accordance with the provisions of thisAct to fill such vacancy, enters upon his office.

(14) When the Chairperson of the Adjudicating Authority is unable to discharge his functions owingto absence, illness or any other cause, the senior-most Member shall discharge the functions of theChairperson of the Adjudicating Authority until the date on which the Chairperson of the AdjudicatingAuthority resumes his duties.

(15) The Adjudicating Authority shall not be bound by the procedure laid down by the Code of CivilProcedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and, subject to theother provisions of this Act, the Adjudicating Authority shall have powers to regulate its own procedure.

1. Subs. by Act 21 of 2009, s. 4, for "one or more Adjudicating Authorities" (w.e.f. 1-6-2009).

2. Subs. by Act 21 of 2009, s. 4, for "sixty-two" (w.e.f. 1-6-2009).

(1) The Central Government shall provide each AdjudicatingAuthority with such officers and employees as that Government may think fit.

(2) The officers and employees of the Adjudicating Authority shall discharge their functions underthe general superintendence of the Chairperson of the Adjudicating Authority.

(3) The salaries and allowances and other conditions of service of the officers and employees of theAdjudicating Authority shall be such as may be prescribed.

(1) On receipt of a complaint under sub-section (5) of section 5, or applicationsmade under sub-section (4) of section 17 or under sub-section (10) of section 18, if the AdjudicatingAuthority has reason to believe that any person has committed an 1[offence under section 3 or is inpossession of proceeds of crime], it may serve a notice of not less than thirty days on such person callingupon him to indicate the sources of his income, earning or assets, out of which or by means of which hehas acquired the property attached under sub-section (1) of section 5, or, seized 2[or frozen] under section17 or section 18, the evidence on which he relies and other relevant information and particulars, and toshow cause why all or any of such properties should not be declared to be the properties involved inmoney-laundering and confiscated by the Central Government:

Provided that where a notice under this sub-section specifies any property as being held by a personon behalf of any other person, a copy of such notice shall also be served upon such other person:

Provided further that where such property is held jointly by more than one person, such notice shallbe served to all persons holding such property.

(2) The Adjudicating Authority shall, after--

(a) considering the reply, if any, to the notice issued under sub-section (1);

(b) hearing the aggrieved person and the Director or any other officer authorised by him in thisbehalf; and

(c) taking into account all relevant materials placed on record before him,

by an order, record a finding whether all or any of the properties referred to in the notice issued undersub-section (1) are involved in money-laundering:

Provided that if the property is claimed by a person, other than a person to whom the notice had beenissued, such person shall also be given an opportunity of being heard to prove that the property is notinvolved in money-laundering.

(3) Where the Adjudicating Authority decides under sub-section (2) that any property is involved inmoney-laundering, he shall, by an order in writing, confirm the attachment of the property made undersub-section (1) of section 5 or retention of property or 3[record seized or frozen under section 17 orsection 18 and record a finding to that effect, whereupon such attachment or retention or freezing of theseized or frozen property] or record shall--

(a) continue during 4[investigation for a period not exceeding 5[three hundred and sixty-five days]or] the pendency of the proceedings relating to any 6[offence under this Act before a court or underthe corresponding law of any other country, before the competent court of criminal jurisdictionoutside India, as the case may be; and]

7[(b) become final after an order of confiscation is passed under sub-section (5) or sub-section (7)of section 8 or section 58B or sub-section (2A) of section 60 by the 8[Special Court];]

9Explanation.--For the purposes of computing the period of three hundred and sixty-five daysunder clause (a), the period during which the investigation is stayed by any court under any law forthe time being in force shall be excluded.]

(4) Where the provisional order of attachment made under sub-section (1) of section 5 has beenconfirmed under sub-section (3), the Director or any other officer authorised by him in this behalf shallforthwith take the 10[possession of the property attached under section 5 or frozen under sub-section (1A)of section 17, in such manner as may be prescribed:

Provided that if it is not practicable to take possession of a property frozen under sub-section (1A) ofsection 17, the order of confiscation shall have the same effect as if the property had been takenpossession of.]

11[(5) Where on conclusion of a trial of an offence under this Act, the Special Court finds that theoffence of money-laundering has been committed, it shall order that such property involved in the moneylaundering or which has been used for commission of the offence of money-laundering shall standconfiscated to the Central Government.

(6) Where on conclusion of a trial under this Act, the Special Court finds that the offence of moneylaundering has not taken place or the property is not involved in money-laundering, it shall order releaseof such property to the person entitled to receive it.

(7) Where the trial under this Act cannot be conducted by reason of the death of the accused or theaccused being declared a proclaimed offender or for any other reason or having commenced but could notbe concluded, the Special Court shall, on an application moved by the Director or a person claiming to beentitled to possession of a property in respect of which an order has been passed under sub-section (3) ofsection 8, pass appropriate orders regarding confiscation or release of the property, as the case may be,involved in the offence of money-laundering after having regard to the material before it.]

12[(8) Where a property stands confiscated to the Central Government under sub-section (5), theSpecial Court, in such manner as may be prescribed, may also direct the Central Government to restoresuch confiscated property or part thereof of a claimant with a legitimate interest in the property, who mayhave suffered a quantifiable loss as a result of the offence of money laundering:

Provided that the Special Court shall not consider such claim unless it is satisfied that the claimanthas acted in good faith and has suffered the loss despite having taken all reasonable precautions and is notinvolved in the offence of money laundering:]

4[Provided further that the Special Court may, if it thinks fit, consider the claim of the claimant for thepurposes of restoration of such properties during the trial of the case in such manner as may beprescribed.]

1. Subs. by Act 21 of 2009, s. 5, for "offence under section 3" (w.e.f. 1-6-2009).

2. Ins. by Act 2 of 2013, s. 6 (w.e.f. 15-2-2013).

3. Subs. by s. 6, ibid., for certain words and figures (w.e.f. 15-2-2013).

4. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018).

5. Subs. by Act 7 of 2019, s. 22, for "ninety days" (w.e.f. 20-3-2019).

6. Subs. by Act 2 of 2013, s. 6, for "scheduled offence before a court; and" (w.e.f. 15-2-2013).

7. Subs. by s. 6, ibid., for clause (b) (w.e.f. 15-2-2013).

8. Subs. by Act 20 of 2015, s. 147, for "Adjudicating Authority" (w.e.f. 14-5-2015).

9. Ins. by Act 7 of 2019, s. 22 (w.e.f. 20-3-2019).

10. Subs. by Act 2 of 2013, s. 6, for "possession of the attached property" (w.e.f. 15-2-2013).

11. Subs. by s. 6, ibid., for sub-sections (5) and (6) (w.e.f. 15-2-2013).

12. Ins. by Act 20 of 2015, s. 147 (w.e.f. 14-5-2015).

Where an order of confiscation has been madeunder 1[sub-section (5) or sub-section (7) of section 8 or section 58B or sub-section (2A) of section 60] inrespect of any property of a person, all the rights and title in such property shall vest absolutely in theCentral Government free from all encumbrances:

Provided that where the 2[Special Court or the Adjudicating Authority, as the case may be,] aftergiving an opportunity of being heard to any other person interested in the property attached under thisChapter, or seized 3[or frozen] under Chapter V, is of the opinion that any encumbrance on the property oror lease-hold interest has been created with a view to defeat the provisions of this Chapter, it may, byorder, declare such encumbrance or lease-hold interest to be void and thereupon the aforesaid propertyshall vest in the Central Government free from such encumbrances or lease-hold interest:

Provided further that nothing in this section shall operate to discharge any person from any liability inrespect of such encumbrances which may be enforced against such person by a suit for damages.

1. Subs. by Act 2 of 2013, s. 7, for "sub-section (6) of section 8" (w.e.f. 15-2-2013).

2. Subs. by Act 2 of 2013, s. 7, for "Adjudicating Authority" (w.e.f. 15-2-2013).

3. Ins. by s.7, ibid. (w.e.f. 15-2-2013).

(1) The Central Governmentmay, by order published in the Official Gazette, appoint as many of its officers (not below the rank of aJoint Secretary to the Government of India) as it thinks fit to perform the functions of an Administrator.

(2) The Administrator appointed under sub-section (1) shall receive and manage the property inrelation to which an order has been made under ¹[sub-section (5) or sub-section (6) or sub-section (7) ofsection 8 or section 58B or sub-section (2A) of section 60] in such manner and subject to such conditionsas may be prescribed.

(3) The Administrator shall also take such measures, as the Central Government may direct, todispose of the property which is vested in the Central Government under section 9.

1 Subs. by s. 8, ibid., for "sub-section (6) of section 8" (w.e.f. 15-2-2013).

TheAdjudicating Authority shall, for the purposes of this Act, have the same powers as are vested in a civilcourt under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit in respect of the followingmatters, namely:--

(a) discovery and inspection;

(b) enforcing the attendance of any person, including any officer of a banking company or afinancial institution or a company, and examining him on oath;

(c) compelling the production of records;

(d) receiving evidence on affidavits;

(e) issuing commissions for examination of witnesses and documents; and

(f) any other matter which may be prescribed.

(2) All the persons so summoned shall be bound to attend in person or through authorised agents, asthe Adjudicating Authority may direct, and shall be bound to state the truth upon any subject respectingwhich they are examined or make statements, and produce such documents as may be required.

(3) Every proceeding under this section shall be deemed to be a judicial proceeding within themeaning of section 193 and section 228 of the Indian Penal Code (45 of 1860).

¹[11A. Verification of Identity by Reporting Entity.--(1) Every Reporting Entity shall verify theidentity of its clients and the beneficial owner, by--

(a) authentication under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefitsand Services) Act, 2016 (18 of 2016) if the reporting entity is a banking company; or

(b) offline verification under the Aadhaar (Targeted Delivery of Financial and Other Subsidies,Benefits and Services) Act, 2016 (18 of 2016); or

(c) use of passport issued under section 4 of the Passports Act, 1967 (15 of 1967); or

(d) use of any other officially valid document or modes of identification as may be notified by theCentral Government in this behalf:

Provided that the Central Government may, if satisfied that a reporting entity other than bankingcompany, complies with such the standards of privacy and security under the Aadhaar (Targeted Delivery ofFinancial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016), and it is necessary andexpedient to do so, by notification, permit such entity to perform authentication under clause (a):

Provided further that no notification under the first proviso shall be issued without consultation with theUnique Identification Authority of India established under sub-section (1) of section 11 of the Aadhaar(Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016) and theappropriate regulator.

(2) If any reporting entity performs authentication under clause (a) of sub-section (1), to verify the identity ofits client or the beneficial owner it shall make the other modes of identification under clauses (b), (c) and (d)of sub-section (1) also available to such client or the beneficial owner.

(3) The use of modes of identification under sub-section (1) shall be a voluntary choice of every clientor beneficial owner who is sought to be identified and no client or beneficial owner shall be deniedservices for not having an Aadhaar number.

(4) If, for identification of a client or beneficial owner, authentication or offline verification underclause (a) or clause (b) of sub-section (1) is used, neither his core biometric information nor his Aadhaarnumber shall be stored.

(5) Nothing in this section shall prevent the Central Government from notifying additional safeguardson any reporting entity in respect of verification of the identity of its client or beneficial owner.

Explanation.--The expressions "Aadhaar number" and core biometric information shall have thesame meanings as are respectively assigned to them in clauses (a) and (j) of section 2 of the Aadhaar(Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016).]

1. Ins. by Act 14 of 2019, s. 27 (w.e.f. 25-07-2019).

1[12. Reporting entity to maintain records.(1) Every reporting entity shall--

(a) maintain a record of all transactions, including information relating to transactions coveredunder clause (b), in such manner as to enable it to reconstruct individual transactions;

(b) furnish to the Director within such time as may be prescribed, information relating to such transactions, whether attempted or executed, the nature and value of which may be prescribed;

2

(e) maintain record of documents evidencing identity of its clients and beneficial owners as wellas account files and business correspondence relating to its clients.

(2) Every information maintained, furnished or verified, save as otherwise provided under any lawfor the time being in force, shall be kept confidential.

(3) The records referred to in clause (a) of sub-section (1) shall be maintained for a period of fiveyears from the date of transaction between a client and the reporting entity.

(4) The records referred to in clause (e) of sub-section (1) shall be maintained for a period of fiveyears after the business relationship between a client and the reporting entity has ended or the account hasbeen closed, whichever is later.

(5) The Central Government may, by notification, exempt any reporting entity or class of reportingentities from any obligation under this Chapter.]

1. Subs. by s. 9, ibid., for section 12 (w.e.f. 15-2-2013).

2. Clauses (c) and (d) omitted by Act 14 of 2019, s. 28 (w.e.f. 25-07-2019).

1[12A. Access to information.(1) The Director may call for from any reporting entity any of therecords referred to in sub-section (1) of section 12 and any additional information as he considersnecessary for the purposes of this Act.

(2) Every reporting entity shall furnish to the Director such information as may be required by himunder sub-section (1) within such time and in such manner as he may specify.

(3) Save as otherwise provided under any law for the time being in force, every information soughtby the Director under sub-section (1), shall be kept confidential.]

1. Ins. by Act 2 of 2013, s. 10 (w.e.f. 15-2-2013).

(1) The Director may, either of his own motion or on anapplication made by any authority, officer or person, 1[make such inquiry or cause such inquiry to bemade, as he thinks fit to be necessary, with regard to the obligations of the reporting entity, under thisChapter.]

2[(1A) If at any stage of inquiry or any other proceedings before him, the Director having regard to thenature and complexity of the case, is of the opinion that it is necessary to do so, he may direct theconcerned reporting entity to get its records, as may be specified, audited by an accountant from amongsta panel of accountants, maintained by the Central Government for this purpose.

(1B)The expenses of, and incidental to, any audit under sub-section (1A) shall be borne by the CentralGovernment.]

3[(2) If the Director, in the course of any inquiry, finds that a reporting entity or its designated directoron the Board or any of its employees has failed to comply with the obligations under this Chapter, then,without prejudice to any other action that may be taken under any other provisions of this Act, he may--

(a) issue a warning in writing; or

(b) direct such reporting entity or its designated director on the Board or any of its employees, tocomply with specific instructions; or

(c) direct such reporting entity or its designated director on the Board or any of its employees, tosend reports at such interval as may be prescribed on the measures it is taking; or

(d) by an order, impose a monetary penalty on such reporting entity or its designated director onthe Board or any of its employees, which shall not be less than ten thousand rupees but may extend to one lakh rupees for each failure.]

(3) The Director shall forward a copy of the order passed under sub-section (2) to every bankingcompany, financial institution or intermediary or person who is a party to the proceedings under thatsub-section.

⁴[Explanation.--For the purpose of this section, "accountant" shall mean a chartered accountantwithin the meaning of the Chartered Accountants Act, 1949 (38 of 1949).]

1. Subs. by s. 11, ibid., for certain words, brackets and figures (w.e.f. 15-2-2013).

2. Ins. by s. 11, ibid. (w.e.f. 15-2-2013).

3. Subs. by s. 11, ibid., for sub-section (2) (w.e.f. 15-2-2013).

4 The Explanation inserted by Act 2 of 2013, s. 11 (w.e.f. 15-2-2013).

1[14. No civil or criminal proceedings against reporting entity, its directors and employees incertain cases.Save as otherwise provided in section 13, the reporting entity, its directors andemployees shall not be liable to any civil or criminal proceedings against them for furnishing informationunder clause (b) of sub-section (1) of section 12.]

1. Subs. by s. 12, ibid., for section 14 (w.e.f. 15-2-2013).

¹[15. Procedure and manner of furnishing information by reporting entities.u2014 The CentralGovernment may, in consultation with the Reserve Bank of India, prescribe the procedure and the mannerof maintaining and furnishing information by a reporting entity under sub-section (1) of section 12 for thepurpose of implementing the provisions of this Act.]

1 Subs. by s. 13, ibid., for section 15 (w.e.f. 15-2-2013).

(1) Notwithstanding anything contained in any other provisions of this Act,where an authority, on the basis of material in his possession, has reason to believe (the reasons for suchbelief to be recorded in writing) that an offence under section 3 has been committed, he may enter anyplace--

(i) within the limits of the area assigned to him; or

(ii) in respect of which he is authorised for the purposes of this section by such other authority,who is assigned the area within which such place is situated,

at which any act constituting the commission of such offence is carried on, and may require anyproprietor, employee or any other person who may at that time and place be attending in any manner to,or helping in, such act so as to,--

(i) afford him the necessary facility to inspect such records as he may require and which may beavailable at such place;

(ii) afford him the necessary facility to check or verify the proceeds of crime or any transactionrelated to proceeds of crime which may be found therein; and

(iii) furnish such information as he may require as to any matter which may be useful for, orrelevant to, any proceedings under this Act.

Explanation--For the purposes of this sub-section, a place, where an act which constitutes thecommission of the offence is carried on, shall also include any other place, whether any activity is carriedon therein or not, in which the person carrying on such activity states that any of his records or any part ofhis property relating to such act are or is kept.

(2) The authority referred to in sub-section (1) shall, after entering any place referred to in thatsub-section immediately after completion of survey, forward a copy of the reasons so recorded along withmaterial in his possession, referred to in that sub-section, to the Adjudicating Authority in a sealedenvelope, in the manner as may be prescribed and such Adjudicating Authority shall keep such reasonsand material for such period as may be prescribed.

(3) An authority acting under this section may--

(i) place marks of identification on the records inspected by him and make or cause to be madeextracts or copies there from,

(ii) make an inventory of any property checked or verified by him, and

(iii) record the statement of any person present in the place which may be useful for, or relevantto, any proceeding under this Act.

(1) Where ¹[the Director or any other officer not below the rank of DeputyDirector authorised by him for the purposes of this section,] on the basis of information in his possession,has reason to believe (the reason for such belief to be recorded in writing) that any person--

(i) has committed any act which constitutes money-laundering, or

(ii) is in possession of any proceeds of crime involved in money-laundering, or

(iii) is in possession of any records relating to money-laundering,²[or]

²[(iv) is in possession of any property related to crime,]

then, subject to the rules made in this behalf, he may authorise any officer subordinate to him to--

(a) enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspectthat such records or proceeds of crime are kept;

(b) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercisingthe powers conferred by clause (a) where the keys thereof are not available;

(c) seize any record or property found as a result of such search;

(d) place marks of identification on such record or²[property, if required or] make or cause to bemade extracts or copies therefrom;

(e) make a note or an inventory of such record or property;

(f) examine on oath any person, who is found to be in possession or control of any record orproperty, in respect of all matters relevant for the purposes of any investigation under this Act:

³[Provided that no search shall be conducted unless, in relation to the scheduled offence, a reporthas been forwarded to a Magistrate under section 157 of the Code of Criminal Procedure, 1973(2 of 1974), or a complaint has been filed by a person, authorised to investigate the offence mentionedin the Schedule, before a Magistrate or court for taking cognizance of the scheduled offence, as thecase may be, or in cases where such report is not required to be forwarded, a similar report ofinformation received or otherwise has been submitted by an officer authorised to investigate ascheduled offence to an officer not below the rank of Additional Secretary to the Government of Indiaor equivalent being head of the office or Ministry or Department or Unit, as the case may be, or anyother officer who may be authorised by the Central Government, by notification, for this purpose.]

⁴[(1A) Where it is not practicable to seize such record or property, the officer authorised undersub-section (1), may make an order to freeze such property whereupon the property shall not betransferred or otherwise dealt with, except with the prior permission of the officer making such order, anda copy of such order shall be served on the person concerned:

Provided that if, at any time before its confiscation under sub-section (5) or sub-section (7) of section8 or section 58B or sub-section (2A) of section 60, it becomes practical to seize a frozen property, theofficer authorised under sub-section (1) may seize such property.]

(2) The authority, who has been authorised under sub-section (1) shall, immediately after search andseizure ⁵[or upon issuance of a freezing order], forward a copy of the reasons so recorded along withmaterial in his possession, referred to in that sub-section, to the Adjudicating Authority in a sealedenvelope, in the manner, as may be prescribed and such Adjudicating Authority shall keep such reasonsand material for such period, as may be prescribed.

(3) Where an authority, upon information obtained during survey under section 16, is satisfied thatany evidence shall be or is likely to be concealed or tampered with, he may, for reasons to be recorded inwriting, enter and search the building or place where such evidence is located and seize that evidence:

Provided that no authorisation referred to in sub-section (1) shall be required for search under thissub-section.

⁶[(4) The authority seizing any record or property under sub-section (1) or freezing any record orproperty under sub-section (1A) shall, within a period of thirty days from such seizure or freezing, as thecase may be, file an application, requesting for retention of such record or property seized undersub-section (1) or for continuation of the order of freezing served under sub-section (1A), before theAdjudicating Authority.]

1 Subs. by Act 21 of 2009, s. 7, for "the Director" (w.e.f. 1-6-2009).

2. Ins. by Act 2 of 2013, s. 14 (w.e.f. 15-2-2013).

3. Subs. by s.14, ibid., for the proviso (w.e.f. 15-2-2013).

4. Ins. by s. 14, ibid. (w.e.f. 15-2-3013).

5. Ins. by Act 2 of 2013, s. 14 (w.e.f. 15-2-2013).

6. Subs. by s. 14, ibid., for sub-section (4) (w.e.f. 15-2-2013).

(1) If an authority, authorised in this behalf by the Central Government bygeneral or special order, has reason to believe (the reason for such belief to be recorded in writing) thatany person has secreted about his person or in anything under his possession, ownership or control, anyrecord or proceeds of crime which may be useful for or relevant to any proceedings under this Act, hemay search that person and seize such record or property which may be useful for or relevant to anyproceedings under this Act:

1[Provided that no search of any person shall be made unless, in relation to the scheduled offence, areport has been forwarded to a Magistrate under section 157 of the Code of Criminal Procedure, 1973(2 of 1974) or a complaint has been filed by a person, authorised to investigate the offence mentioned inthe Schedule, before a Magistrate or court for taking cognizance of the scheduled offence, as the case maybe, or in cases where such report is not required to be forwarded, a similar report of information receivedor otherwise has been submitted by an officer authorised to investigate a scheduled offence to an officernot below the rank of Additional Secretary to the Government of India or equivalent being head of theoffice or Ministry or Department or Unit, as the case may be, or any other officer who may be authorisedby the Central Government, by notification, for this purpose.]

(2) The authority, who has been authorised under sub-section (1) shall, immediately after search andseizure, forward a copy of the reasons so recorded along with material in his possession, referred to in thatsub-section, to the Adjudicating Authority in a sealed envelope, in the manner, as may be prescribed andsuch Adjudicating Authority shall keep such reasons and material for such period, as may be prescribed.

(3) Where an authority is about to search any person, he shall, if such person so requires, take suchperson within twenty-four hours to the nearest Gazetted Officer, superior in rank to him, or a Magistrate:

Provided that the period of twenty-four hours shall exclude the time necessary for the journeyundertaken to take such person to the nearest Gazetted Officer, superior in rank to him, or MagistratesCourt.

(4) If the requisition under sub-section (3) is made, the authority shall not detain the person for morethan twenty-four hours prior to taking him before the Gazetted Officer, superior in rank to him, or theMagistrate referred to in that sub-section:

Provided that the period of twenty-four hours shall exclude the time necessary for the journey fromthe place of detention to the office of the Gazetted Officer, superior in rank to him, or the MagistratesCourt.

(5) The Gazetted Officer or the Magistrate before whom any such person is brought shall, if he seesno reasonable ground for search, forthwith discharge such person but otherwise shall direct that search bemade.

(6) Before making the search under sub-section (1) or sub-section (5), the authority shall call upontwo or more persons to attend and witness the search, and the search shall be made in the presence of suchpersons.

(7) The authority shall prepare a list of record or property seized in the course of the search and obtainthe signatures of the witnesses on the list.

(8) No female shall be searched by any one except a female.

(9) The authority shall record the statement of the person searched under sub-section (1) orsub-section (5) in respect of the records or proceeds of crime found or seized in the course of the search:

2

(10) The authority, seizing any record or property under sub-section (1) shall, within a period of thirtydays from such seizure, file an application requesting for retention of such record or property, before theAdjudicating Authority.

1. Subs. by s. 15, ibid,. for the proviso (w.e.f. 15-2-2013).

2. The proviso omitted by Act 21 of 2009 s. 8 (w.e.f. 1-6-2009).

(1) If the Director, Deputy Director, Assistant Director or any other officerauthorised in this behalf by the Central Government by general or special order, has on the basis ofmaterial in his possession, reason to believe (the reason for such belief to be recorded in writing) that anyperson has been guilty of an offence punishable under this Act, he may arrest such person and shall, assoon as may be, inform him of the grounds for such arrest.

(2) The Director, Deputy Director, Assistant Director or any other officer shall, immediately afterarrest of such person under sub-section (1), forward a copy of the order along with the material in hispossession, referred to in that sub-section, to the Adjudicating Authority in a sealed envelope, in themanner, as may be prescribed and such Adjudicating Authority shall keep such order and material forsuch period, as may be prescribed.

(3) Every person arrested under sub-section (1) shall, within twenty-four hours, be taken to a1[Special Court or] Judicial Magistrate or a Metropolitan Magistrate, as the case may be, havingjurisdiction:

Provided that the period of twenty-four hours shall exclude the time necessary for the journey fromthe place of arrest to the 1[Special Court or] Magistrate's Court.

1. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018).

1[20.Retention of property.(1) Where any property has been seized under section 17 or section 18or frozen under sub-section (1A) of section 17 and the officer authorised by the Director in this behalf has,on the basis of material in his possession, reason to believe (the reason for such belief to be recorded byhim in writing) that such property is required to be retained for the purposes of adjudication under section8, such property may, if seized, be retained or if frozen, may continue to remain frozen, for a period notexceeding one hundred and eighty days from the day on which such property was seized or frozen, as thecase may be.

(2) The officer authorised by the Director shall, immediately after he has passed an order for retentionor continuation of freezing of the property for purposes of adjudication under section 8, forward a copy of the order along with the material in his possession, referred to in sub-section (1), to the AdjudicatingAuthority, in a sealed envelope, in the manner as may be prescribed and such Adjudicating Authorityshall keep such order and material for such period as may be prescribed.

(3) On the expiry of the period specified in sub-section (1), the property shall be returned to theperson from whom such property was seized or whose property was ordered to be frozen unless theAdjudicating Authority permits retention or continuation of freezing of such property beyond the saidperiod.

(4) The Adjudicating Authority, before authorising the retention or continuation of freezing of suchproperty beyond the period specified in sub-section (1), shall satisfy himself that the property is primafacie involved in money-laundering and the property is required for the purposes of adjudication undersection 8.

(5) After passing the order of confiscation under sub-section (5) or sub-section (7) of section 8,2[Special Court], shall direct the release of all property other than the property involved inmoney-laundering to the person from whom such property was seized or the persons entitled to receive it.

(6) Where an order releasing the property has been made by the 3[Special Court] under sub-section(6) of section 8 or by the Adjudicating Authority under section 58B or sub-section (2A) of section 60, theDirector or any officer authorised by him in this behalf may withhold the release of any such property fora period of ninety days from the date of4[receipt of] such order, if he is of the opinion that such property isrelevant for the appeal proceedings under this Act.]

1. Subs. by Act 2 of 2013, s.16, for sections 20 and 21 (w.e.f. 15-2-2013).

2. Subs. by Act 20 of 2015, s. 148, for "the Court or the Adjudicating Authority, as the case may be" (w.e.f. 14-5-2015).

3. Subs. by s. 148, ibid., for "Court" (w.e.f. 14-5-2015).

4. Ins. by s. 148, ibid. (w.e.f. 14-5-2015).

1[21. Retention of records.(1) Where any records have been seized, under section 17 or section 18or frozen under sub-section (1A) of section 17 and the Investigating Officer or any other officerauthorised by the Director in this behalf has reason to believe that any of such records are required to beretained for any inquiry under this Act, such records may if seized, be retained or if frozen, may continueto remain frozen, for a period not exceeding one hundred and eighty days from the day on which suchrecords were seized or frozen, as the case may be.

(2) The person, from whom records seized or frozen, shall be entitled to obtain copies of records.

(3) On the expiry of the period specified under sub-section (1), the records shall be returned to theperson from whom such records were seized or whose records were ordered to be frozen unless theAdjudicating Authority permits retention or continuation of freezing of such records beyond the saidperiod.

(4) The Adjudicating Authority, before authorising the retention or continuation of freezing of suchrecords beyond the period specified in sub-section (1), shall satisfy himself that the records are requiredfor the purposes of adjudication under section 8.

(5) After passing of an order of confiscation ²[or release under sub-section (5) or sub-section (6) orsub-section (7) of section 8 or section 58B or sub-section (2A) of section 60], the Adjudicating Authorityshall direct the release of the records to the person from whom such records were seized.

(6) Where an order releasing the records has been made by the Court ³[Adjudicating Authority undersub-section (5) of section 21], the Director or any other officer authorised by him in this behalf maywithhold the release of any such record for a period of ninety days from the date of ⁴[receipt of] suchorder, if he is of the opinion that such record is relevant for the appeal proceedings under this Act.]

1. Subs. by Act 2 of 2013, s.16, for sections 20 and 21 (w.e.f. 15-2-2013).

2 Subs. by s. 149, ibid., for "under sub-section (5) or sub-section (7) of section 8" (w.e.f. 14-5-2015).

3. Subs. by s. 149, ibid., for certain words, brackets, figures and letters (w.e.f. 14-5-2015).

4. Ins. by s. 149, ibid. (w.e.f. 14-5-2015).

(1) Where any records or propertyare or is found in the possession or control of any person in the course of a survey or a search1[or whereany record or property is produced by any person or has been resumed or seized from the custody orcontrol of any person or has been frozen under this Act or under any other law for the time being inforce,] it shall be presumed that--

(i) such records or property belong or belongs to such person;

(ii) the contents of such records are true; and

(iii) the signature and every other part of such records which purport to be in the handwriting ofany particular person or which may reasonably be assumed to have been signed by, or to be in thehandwriting of, any particular person, are in that persons handwriting, and in the case of a record,stamped, executed or attested, that it was executed or attested by the person by whom it purports tohave been so stamped, executed or attested.

(2) Where any records have been received from any place outside India, duly authenticated by suchauthority or person and in such manner as may be prescribed, in the course of proceedings under this Act,the Special Court, the Appellate Tribunal or the Adjudicating Authority, as the case may be, shall--

(a) presume, that the signature and every other part of such record which purports to be in thehandwriting of any particular person or which the court may reasonably assume to have been signedby, or to be in the handwriting of, any particular person, is in that person's handwriting; and in thecase of a record executed or attested, that it was executed or attested by the person by whom itpurports to have been so executed or attested;

(b) admit the document in evidence, notwithstanding that it is not duly stamped, if such documentis otherwise admissible in evidence.

1. Ins. by Act 2 of 2013, s.17 (w.e.f. 15-2-2013).

Where money-laundering involves two or moreinter-connected transactions and one or more such transactions is or are proved to be involved inmoney-laundering, then for the purposes of adjudication or confiscation 1[under section 8 or for the trialof the money-laundering offence, it shall unless otherwise proved to the satisfaction of the AdjudicatingAuthority or the Special Court], be presumed that the remaining transactions from part of such interconnectedtransactions.

1. Subs. by s.18, ibid., for certain words and figure (w.e.f. 15-2-2013).

1[24. Burden of proof.In any proceeding relating to proceeds of crime under this Act,--

(a) in the case of a person charged with the offence of money-laundering under section 3, theAuthority or Court shall, unless the contrary is proved, presume that such proceeds of crime areinvolved in money-laundering; and

(b) in the case of any other person the Authority or Court, may presume that such proceeds ofcrime are involved in money-laundering.]

1. Subs. by s.19, ibid., for section 24 (w.e.f. 15-2-2013).

1[25. Appellate Tribunal.The Appellate Tribunal constituted under sub-section (1) of section 12 ofof the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (13 of 1976) shall be the Appellate Tribunal for hearing appeals against the orders of the Adjudicating Authority andthe other authorities under this Act.]

1. Subs. by Act 28 of 2016, s. 232, for section 25 (w.e.f. 1-6-2016).

(1) Save as otherwise provided in sub-section (3), the Directoror any person aggrieved by an order made by the Adjudicating Authority under this Act, may prefer anappeal to the Appellate Tribunal.

(2) Any 1[reporting entity] aggrieved by any order of the Director made under sub-section (2) ofsection 13, may prefer an appeal to the Appellate Tribunal.

(3) Every appeal preferred under sub-section (1) or sub-section (2) shall be filed within a period offorty-five days from the date on which a copy of the order made by the Adjudicating Authority orDirector is received and it shall be in such form and be accompanied by such fee as may be prescribed:

Provided that the Appellate Tribunal may, after giving an opportunity of being heard, entertain anappeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient causefor not filing it within that period.

(4) On receipt of an appeal under sub-section (1) or sub-section (2), the Appellate Tribunal may, aftergiving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit,confirming, modifying or setting aside the order appealed against.

(5) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal andto the concerned Adjudicating Authority or the Director, as the case may be.

(6) The appeal filed before the Appellate Tribunal under sub-section (1) or sub-section (2) shall bedealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appealfinally within six months from the date of filing of the appeal.

1. Subs. by Act 2 of 2013, s. 20, for "banking company, financial institution or intermediary" (w.e.f. 15-2-2013).

[Compositions, etc., of Appellate Tribunal.] Omitted by the Finance Act, 2016 (28 of 2016), s. 232(w.e.f. 1-6-2016).

[Qualifications for appointment.] Omitted by s. 232, ibid. (w.e.f. 1-6-2016).

[Term of office.]Omitted by the Prevention of Money-laundering (Amendment) Act, 2005(20 of 2005), s. 4 (w.e.f. 1-7-2005).

[Conditions of service.] Omitted by the Finance Act, 2016 (28 of 2016), s. 232 (w.e.f. 1-6-2016).

[Vacancies.] Omitted by s. 232, ibid. (w.e.f. 1-6-2016).

[Resignation and removal.] Omitted by s. 232, ibid. (w.e.f. 1-6-2016).

[Member to act as Chairperson in certain circumstances.]Omitted by s. 232, ibid.(w.e.f. 1-6-2016).

[Staff of Appellate Tribunal.] Omitted by s. 232, ibid. (w.e.f. 1-6-2016).

(1) The Appellate Tribunal shall not be boundby the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by theprinciples of natural justice and, subject to the other Provisions of this Act, the Appellate Tribunal shallhave powers to regulate its own procedure.

(2) The Appellate Tribunal shall have, for the purposes of discharging its functions under this Act, thesame powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) whiletrying a suit, in respect of the following matters, namely:--

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) requiring the discovery and production of documents;

(c) receiving evidence on affidavits;

(d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of1872), requisitioning any public record or document or copy of such record or document from anyoffice;

(e) issuing commissions for the examination of witnesses or documents;

(f) reviewing its decisions;

(g) dismissing a representation for default or deciding it ex parte;

(h) setting aside any order of dismissal of any representation for default or any order passed by itex parte; and

(i) any other matter, which may be, prescribed by the Central Government.

(3) An order made by the Appellate Tribunal under this Act shall be executable by the AppellateTribunal as a decree of civil court and, for this purpose, the Appellate Tribunal shall have all the powersof a civil court.

(4) Notwithstanding anything contained in sub-section (3), the Appellate Tribunal may transmit anyorder made by it to a civil court having local jurisdiction and such civil court shall execute the order as ifit were a decree made by that court.

(5) All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings withinthe meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Appellate Tribunalshall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of CriminalProcedure, 1973 (2 of 1974).

Where any Benches are constituted, the1[Chairman] may, from time to time, by notification, make provisions as to the distribution of the businessof the Appellate Tribunal amongst the Benches and also provide for the matters which may be dealt withby each Bench.

1. Subs. by Act 28 of 2016, s. 232, for "Chairperson" (w.e.f. 1-6-2016)

On the application of any of the parties and afternotice to the parties, and after hearing such of them as he may desire to be heard, or on his own motionwithout such notice, the 1[Chairman] may transfer any case pending before one Bench, for disposal, toany other Bench.

1. Subs. by Act 28 of 2016, s. 232, for "Chairperson" (w.e.f. 1-6-2016).

If the Members of a Bench consisting of two Members differ inopinion on any point, they shall state the point or points on which they differ, and make a reference to the1[Chairman] who shall either hear the point or points himself or refer the case for hearing on such point orpoints by 2[third Member] of the Appellate Tribunal and such point or points shall be decided accordingto the opinion of the majority of the Members of the Appellate Tribunal who have heard the case,including those who first heard it.

1. Subs. by Act 28 of 2016, s. 232, for "Chairperson" (w.e.f. 1-6-2016).

2. Subs. by Act 21 of 2009, s. 11, for "one or more of the other Members" (w.e.f. 1-6-2009).

(1) A person preferring an appeal to the Appellate Tribunal under this Actmay either appear in person or take the assistance of an authorised representative of his choice to presenthis case before the Appellate Tribunal.

Explanation.--For the purposes of this sub-section, the expression "authorised representative" shallhave the same meaning as assigned to it under sub-section (2) of section 288 of the Income-tax Act, 1961(43 of 1961).

(2) The Central Government or the Director may authorise one or more authorised representatives orany of its officers to act as presenting officers and every person so authorised may present the case withrespect to any appeal before the Appellate Tribunal.

The 1[Chairman], Members and other officers andemployees of the Appellate Tribunal, the Adjudicating Authority, Director and the officers subordinate tohim shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45of 1860).

1. Subs. by Act 28 of 2016, s. 232, for "Chairperson" (w.e.f. 1-6-2016).

No civil court shall have jurisdiction to entertain any suitor proceeding in respect of any matter which the Director, an Adjudicating Authority or the AppellateTribunal is empowered by or under this Act to determine and no injunction shall be granted by any courtor other authority in respect of any action taken or to be taken in pursuance of any power conferred by orunder this Act.

Any person aggrieved by any decision or order of the AppellateTribunal may file an appeal to the High Court within sixty days from the date of communication of thedecision or order of the Appellate Tribunal to him on any question of law or fact arising out of such order:

Provided that the High Court may, if it is satisfied that the appellant was prevented by sufficientcause from filing the appeal within the said period, allow it to be filed within a further period notexceeding sixty days.

Explanation.--For the purposes of this section, "High Court" means--

(i) the High Court within the jurisdiction of which the aggrieved party ordinarily resides or carrieson business or personally works for gain; and

(ii) where the Central Government is the aggrieved party, the High Court within the jurisdictionof which the respondent, or in a case where there are more than one respondent, any of therespondents, ordinarily resides or carries on business or personally works for gain.

(1) The Central Government, in consultation with the Chief Justice of the HighCourt, shall, for trial of offence punishable under section 4, by notification, designate one or more Courtsof Session as Special Court or Special Courts or such area or areas or for such case or class or group ofcases as may be specified in the notification.

Explanation.--In this sub-section, "High Court" means the High Court of the State in which aSessions Court designated as Special Court was functioning immediately before such designation.

(2) While trying an offence under this Act, a Special Court shall also try an offence, other than anoffence referred to in sub-section (1), with which the accused may, under the Code of CriminalProcedure, 1973 (2 of 1974), be charged at the same trial.

(1) Notwithstanding anything contained in the Code ofCriminal Procedure, 1973 (2 of 1974),--

1[(a) an offence punishable under section 4 and any scheduled offence connected to the offenceunder that section shall be triable by the Special Court constituted for the area in which the offencehas been committed:

Provided that the Special Court, trying a scheduled offence before the commencement of this Act,shall continue to try such scheduled offence; or];

(b) a Special Court may, 2 upon a complaint made by an authority authorised in this behalfunder this Act take 3[cognizance of offence under section 3, without the accused being committed toit for trial];

4[(c) if the court which has taken cognizance of the scheduled offence is other than the SpecialCourt which has taken cognizance of the complaint of the offence of money-laundering undersub-clause (b), it shall, on an application by the authority authorised to file a complaint under thisAct, commit the case relating to the scheduled offence to the Special Court and the Special Courtshall, on receipt of such case proceed to deal with it from the stage at which it is committed.

(d) a Special Court while trying the scheduled offence or the offence of money-laundering shallhold trial in accordance with the provisions of the Code of Criminal Procedure, 1973 ( 2 of 1974) as itapplies to a trial before a Court of Session.]

(2) Nothing contained in this section shall be deemed to affect the special powers of the High Courtregarding bail under section 439 of the Code of Criminal Procedure, 1973 (2 of 1974) and the High Courtmay exercise such powers including the power under clause (b) of sub-section (1) of that section as if thereference to "Magistrate" in that section includes also a reference to a "Special Court" designated undersection 43.

1. Subs. by Act 2 of 2013, s. 21, for clause (a) (w.e.f. 15-2-2013).

2. The words "upon perusal of police report of the facts which constitute an offence under this Act or" omitted by Act20 of 2005, s. 6 (w.e.f. 1-7-2005).

3. Subs. by Act 2 of 2013, s. 21, for "cognizance of the offence for which the accused is committed to it for trial"(w.e.f. 15-2-2013).

4. Ins. by s. 21, ibid. (w.e.f. 15-2-2013).

(1) ¹[Notwithstanding anything contained in theCode of Criminal Procedure, 1973 (2 of 1974), no person accused of an offence ²[under this Act] shall bereleased on bail or on his own bond unless--]

(i) the Public Prosecutor has been given a opportunity to oppose the application for suchrelease; and

(ii) where the Public Prosecutor opposes the application, the court is satisfied that there arereasonable grounds for believing that he is not guilty of such offence and that he is not likely tocommit any offence while on bail:

Provided that a person, who, is under the age of sixteen years, or is a woman or is sick or infirm, ³[oris accused either on his own or along with other co-accused of money-laundering a sum of less than onecrore rupees] may be released on bail, if the Special Court so directs:

Provided further that the Special Court shall not take cognizance of any offence punishable undersection 4 except upon a complaint in writing made by--

(i) the Director; or

(ii) any officer of the Central Government or a State Government authorised in writing in thisbehalf by the Central Government by a general or special order made in this behalf by thatGovernment.

⁴[(1A) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), orany other provision of this Act, no police officer shall investigate into an offence under this Act unlessspecifically authorised, by the Central Government by a general or special order, and, subject to suchconditions as may be prescribed.]

(2) The limitation on granting of bail specified in ⁵ sub-section (1) is in addition to the limitationsunder the Code of Criminal Procedure, 1973 (2 of 1974) or any other law for the time being in force ongranting of bail.

1 Subs. by Act 20 of 2005, s. 7, for certain words, figures, brackets and letters (w.e.f. 1-7-2005).

2. Subs. by Act 13 of 2018, s. 208, for "punishable for a term of imprisonment of more than three years under Part A of theSchedule" (w.e.f. 19-4-2018).

3. Ins. by s. 208 ibid, (w.e.f. 19-4-2018).

4. Ins. by Act 20 of 2005, s. 7 (w.e.f. 1-7-2005).

5. The words, brackets and letter "clause (b) of" omitted by s. 7, ibid. (w.e.f. 1-7-2005).

(1)Save as otherwise provided in this Act, the provisions of the Code of Criminal Procedure, 1973 (2 of1974) (including the provisions as to bails or bonds), shall apply to the proceedings before a SpecialCourt and for the purposes of the said provisions, the Special Court shall be deemed to be a Court ofSession and the persons conducting the prosecution before the Special Court, shall be deemed to be aPublic Prosecutor:

Provided that the Central Government may also appoint for any case or class or group of cases aSpecial Public Prosecutor.

(2) A person shall not be qualified to be appointed as a Public Prosecutor or a Special PublicProsecutor under this section unless he has been in practice as an advocate for not less than seven years,under the Union or a State, requiring special knowledge of law.

(3) Every person appointed as a Public Prosecutor or a Special Public Prosecutor under this sectionshall be deemed to be a Public Prosecutor within the meaning of clause (u) of section 2 of the Code ofCriminal Procedure, 1973 (2 of 1974) and the provisions of that Code shall have effect accordingly.

The High Court may exercise, so far as may be applicable, all the powersconferred by Chapter XXIX or Chapter XXX of the Code of Criminal Procedure, 1973 (2 of 1974), on aHigh Court, as if a Special Court within the local limits of the jurisdiction of the High Court were a Courtof Session trying cases within the local limits of the jurisdiction of the High Court.

There shall be the following classes of authorities for the purposes ofthis Act, namely:--

(a) Director or Additional Director or Joint Director,

(b) Deputy Director,

(c) Assistant Director, and

(d) such other class of officers as may be appointed for the purposes of this Act.

(1) The Central Government mayappoint such persons as it thinks fit to be authorities for the purposes of this Act.

(2) Without prejudice to the provisions of sub-section (1), the Central Government may authorise theDirector or an Additional Director or a Joint Director or a Deputy Director or an Assistant Directorappointed under that sub-section to appoint other authorities below the rank of an Assistant Director.

(3) Subject to such conditions and limitations as the Central Government may impose, an authoritymay exercise the powers and discharge the duties conferred or imposed on it under this Act.

(1) The Director shall, for the purposes of section 13, have the same powers as are vested in a civilcourt under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit in respect of the followingmatters, namely:--

(a) discovery and inspection;

(b) enforcing the attendance of any person, including any officer of a 1[reporting entity] andexamining him on oath;

(c) compelling the production of records;

(d) receiving evidence on affidavits;

(e) issuing commissions for examination of witnesses and documents; and

(f) any other matter which may be prescribed.

(2) The Director, Additional Director, Joint Director, Deputy Director or Assistant Director shall havepower to summon any person whose attendance he considers necessary whether to give evidence or toproduce any records during the course of any investigation or proceeding under this Act.

(3) All the persons so summoned shall be bound to attend in person or through authorised agents, assuch officer may direct, and shall be bound to state the truth upon any subject respecting which they areexamined or make statements, and produce such documents as may be required.

(4) Every proceeding under sub-sections (2) and (3) shall be deemed to be a judicial proceedingwithin the meaning of section 193 and section 228 of the Indian Penal Code (45 of 1860).

(5) Subject to any rules made in this behalf by the Central Government, any officer referred to insub-section (2) may impound and retain in his custody for such period, as he thinks fit, any recordsproduced before him in any proceedings under this Act:

Provided that an Assistant Director or a Deputy Director shall not--

(a) impound any records without recording his reasons for so doing; or

(b) retain in his custody any such records for a period exceeding three months, without obtainingthe previous approval of the 2[Joint Director].

1. Subs. by Act 2 of 2013, s. 22, for "banking company or a financial institution or a company," (w.e.f. 15-2-2013).

2. Subs. by Act 13 of 2018, s. 208, for "Director" (w.e.f. 19-4-2018).

(1) The authorities shall exercise all or any of the powers andperform all or any of the functions conferred on, or, assigned, as the case may be, to such authorities by orunder this Act or the rules framed thereunder in accordance with such directions as the CentralGovernment may issue for the exercise of powers and performance of the functions by all or any of theauthorities.

(2) In issuing the directions or orders referred to in sub-section (1), the Central Government may haveregard to any one or more of the following criteria, namely:--

(a) territorial area;

(b) classes of persons;

(c) classes of cases; and

(d) any other criterion specified by the Central Government in this behalf.

The Central Government may, fromtime to time, issue such orders, instructions and directions to the authorities as it may deem fit for theproper administration of this Act and such authorities and all other persons employed in execution of thisAct shall observe and follow such orders, instructions and directions of the Central Government:

Provided that no such orders, instructions or directions shall be issued so as to--

(a) require any authority to decide a particular case in a particular manner; or

(b) interfere with the discretion of the Adjudicating Authority in exercise of his functions.

The Central Government may, by a special or general order,empower an officer not below the rank of Director of the Central Government or of a State Governmentto act as an authority under this Act:

Provided that the Central Government may empower an officer below the rank of Director if theofficer of the rank of the Director or above are not available in a particular area.

The following 1[officers and others] are herebyempowered and required to assist the authorities in the enforcement of this Act, namely:--

(a) officers of the Customs and Central Excise Departments;

(b) officers appointed under sub-section (1) of section 5 of the Narcotic Drugs and PsychotropicSubstances Act, 1985 (61 of 1985);

(c) income-tax authorities under sub-section (1) of section 117 of the Income-tax Act, 1961 (43 of1961);

2[(d) members of the recognised stock exchange referred to in clause (f) of section 2 and theofficers of the stock exchanges recognised under section 4 of the Securities Contracts (Regulation)Act, 1956 (42 of 1956);]

(e) officers of the Reserve Bank of India constituted under sub-section (1) of section 3 of theReserve Bank of India Act, 1934 (2 of 1934);

(f) officers of Police;

(g) officers of enforcement appointed under sub-section (1) of section 36 of the Foreign ExchangeManagement Act, 1999 (40 of 1999);

(h) officers of the Securities and Exchange Board of India established under section 3 of theSecurities and Exchange Board of India Act, 1992 (15 of 1992);

3[(ha) officers of the Insurance Regulatory and Development Authority established under section3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);

(hb) officers of the Forward Markets Commission established under section 3 of the ForwardContracts (Regulation) Act, 1952 (74 of 1952);

(hc) officers and members of the recognised association recognised under section 6 of theForward Contracts (Regulation) Act, 1952 (74 of 1952);

(hd) officers of the Pension Fund Regulatory and Development Authority;

(he) officers of the Department of Posts in the Government of India;

(hf) Registrars or Sub-Registrars appointed by the State Governments under section 6 of theRegistration Act, 1908 (16 of 1908);

(hg) registering authority empowered to register motor vehicles under Chapter IV of the MotorVehicles Act, 1988 (59 of 1988);

(hh) officers and members of the Institute of Chartered Accountants of India constituted undersection 3 of the Chartered Accountants Act, 1949 (38 of 1949);

(hi) officers and members of the Institute of Cost and Works Accountants of India constitutedunder section 3 of the Cost and Works Accountants Act, 1959 (23 of 1959);

(hj) officers and members of the Institute of Company Secretaries of India constituted undersection 3 of the Company Secretaries Act, 1980 (56 of 1980);]

(i) officers of any other body corporate constituted or established under a Central Act or a StateAct;

(j) such other officers of the Central Government, State Government, local authorities or4[reporting entities] as the Central Government may, by notification, specify, in this behalf.

1. Subs. by Act 2 of 2013, s. 23 for "officers" (w.e.f. 15-2-2013).

2. Subs. by s. 23, ibid., for clause (d) (w.e.f. 15-2-2013).

3. Ins. by s. 23, ibid. (w.e.f. 15-2-2013).

4. Subs. by Act 2 of 2013, s. 23, for "banking companies" (w.e.f. 15-2-2013).

In this Chapter, unless the context otherwise requires,--

(a) "contracting State" means any country or place outside India in respect of which arrangementshave been made by the Central Government with the Government of such country through a treaty orotherwise;

(b) "identifying" includes establishment of a proof that the property was derived from, or used inthe commission of an offence under section 3;

(c) "tracing" means determining the nature, source, disposition, movement, title or ownership ofproperty.

(1) The Central Government may enter into an agreementwith the Government of any country outside India for--

(a) enforcing the provisions of this Act;

(b) exchange of information for the prevention of any offence under this Act or under thecorresponding law in force in that country or investigation of cases relating to any offence under thisAct,

and may, by notification in the Official Gazette, make such provisions as may be necessary forimplementing the agreement.

(2) The Central Government may, by notification in the Official Gazette, direct that the application ofthis Chapter in relation to a contracting State with which reciprocal arrangements have been made, shallbe subject to such conditions, exceptions or qualifications as are specified in the said notification.

(1) Notwithstanding anythingcontained in this Act or the Code of Criminal Procedure, 1973 (2 of 1974) if, in the course of aninvestigation into an offence or other proceedings under this Act, an application is made to a SpecialCourt by the Investigating Officer or any officer superior in rank to the Investigating Officer that anyevidence is required in connection with investigation into an offence or proceedings under this Act and he is of the opinion that such evidence may be available in any place in a contracting State, and the SpecialCourt, on being satisfied that such evidence is required in connection with the investigation into anoffence or proceedings under this Act, may issue a letter of request to a court or an authority in thecontracting State competent to deal with such request to--

(i) examine facts and circumstances of the case,

(ii) take such steps as the Special Court may specify in such letter of request, and

(iii) forward all the evidence so taken or collected to the Special Court issuing such letter ofrequest.

(2) The letter of request shall be transmitted in such manner as the Central Government may specifyin this behalf.

(3) Every statement recorded or document or thing received under sub-section (1) shall be deemed tobe the evidence collected during the course of investigation.

Where a letter of request is received by theCentral Government from a court or authority in a contracting State requesting for investigation into anoffence or proceedings under this Act and forwarding to such court or authority any evidence connectedtherewith, the Central Government may forward such letter of request to the Special Court or to anyauthority under the Act as it thinks fit for execution of such request in accordance with the provisions ofthis Act or, as the case may be, any other law for the time being in force.

1[58A. Special Court to release the property.Where on closure of the criminal case or conclusionof a trial in a criminal court outside India under the corresponding law of any other country, such courtfinds that the offence of money-laundering has not taken place or the property in India is not involved inmoney-laundering, the Special Court may, on an application moved by the concerned person or theDirector, after notice to the other party, order release of such property to the person entitled to receive it.]

1. Ins. by Act 2 of 2013, s. 24 (w.e.f. 15-2-2013).

1[58B. Letter of request of a contracting State or authority for confiscation or release theproperty.--Where the trial under the corresponding law of any other country cannot be conducted byreason of the death of the accused or the accused being declared a proclaimed offender or for any otherreason or having commenced but could not be concluded, the Central Government shall, on receipt of aletter of request from a court or authority in a contracting State requesting for confiscation or release ofproperty, as the case may be, forward the same to the Director to move an application before the SpecialCourt and upon such application the Special Court shall pass appropriate orders regarding confiscation orrelease of such property involved in the offence of money-laundering.]

1. Ins. by Act 2 of 2013, s. 24 (w.e.f. 15-2-2013).

Where a Special Court, in relation to an offence punishable under section 4, desires that--

(a) a summons to an accused person, or

(b) a warrant for the arrest of an accused person, or

(c) a summons to any person requiring him to attend and produce a document or other thing or toproduce it, or

(d) a search warrant,

issued by it shall be served or executed at any place in any contracting State, it shall send such summonsor warrant in duplicate in such form, to such Court, Judge or Magistrate through such authorities, as theCentral Government may, by notification, specify in this behalf and that Court, Judge or Magistrate, asthe case may be, shall cause the same to be executed.

(2) Where a Special Court, in relation to an offence punishable under section 4 has received forservice or execution--

(a) a summons to an accused person, or

(b) a warrant for the arrest of an accused person, or

(c) a summons to any person requiring him to attend and produce a document or other thing, or toproduce it, or

(d) a search warrant,

issued by a Court, Judge or Magistrate in a contracting State, it shall, cause the same to be served orexecuted as if it were a summons or warrant received by it from another Court in the said territories forservice or execution within its local jurisdiction; and where--

(i) a warrant of arrest has been executed, the person arrested shall be dealt with in accordancewith the procedure specified under section 19;

(ii) a search warrant has been executed, the things found in this search shall, so far as possible, bedealt with in accordance with the procedure specified under sections 17 and 18:

Provided that in a case where a summon or search warrant received from a contracting State has beenexecuted, the documents or other things produced or things found in the search shall be forwarded to theCourt issuing the summons or search-warrant through such authority as the Central Government may, bynotification, specify in this behalf.

(3) Where a person transferred to a contracting State pursuant to sub-section (2) is a prisoner in India,the Special Court or the Central Government may impose such conditions as that Court or Governmentdeems fit.

(4) Where the person transferred to India pursuant to sub-section (1) is a prisoner in a contractingState, the Special Court in India shall ensure that the conditions subject to which the prisoner istransferred to India are complied with and such prisoner shall be kept in such custody subject to suchconditions as the Central Government may direct in writing.

(1)Where the Director has made an order for attachment of any 1[property under section 5 or for freezingunder sub-section (1A) of section 17 or where an Adjudicating Authority has made an order relating to aproperty under section 8 or where a Special Court has made an order of confiscation relating to a propertyunder sub-section (5) or sub section (6) of section 8] and such property is suspected to be in a contractingState, the Special Court, on an application by the Director or the Administrator appointed undersub-section (1) of section 10, as the case may be , may issue a letter of request to a court or an authority inthe contracting State for execution of such order.

(2) Where a letter of request is received by the Central Government from a court or an authority in acontracting State requesting 2[attachment, seizure, freezing or confiscation] of the property in India,derived or obtained, directly or indirectly, by any person from the commission of an offence under 3[a corresponding law] committed in that contracting State, the Central Government may forward such letterof request to the Director, as it thinks fit, for execution in accordance with the provisions of this Act.

4[(2A) Where on closure of the criminal case or conclusion of trial in a criminal court outside Indiaunder the corresponding law of any other country, such court finds that the offence of money-laundering under the corresponding law of that country has been committed, the 5[Special Court] shall, on receipt ofan application from the Director for execution of confiscation under sub-section (2), order, after givingnotice to the affected persons, that such property involved in money-laundering or which has been usedfor commission of the offence of money-laundering stand confiscated to the Central Government.

(3) The Director shall, on receipt of a letter of request under section 58 or section 59, direct anyauthority under this Act to take all steps necessary for tracing and identifying such property.

(4) The steps referred to in sub-section (3) may include any inquiry, investigation or survey in respectof any person, place, property, assets, documents, books of account in any bank or public financialinstitutions or any other relevant matters.

(5) Any inquiry, investigation or survey referred to in sub-section (4) shall be carried out by anauthority mentioned in sub-section (3) in accordance with such directions issued in accordance with theprovisions of this Act.

(6) The provisions of this Act relating to attachment, adjudication, confiscation and vesting ofproperty in the Central Government contained in Chapter III and survey, searches and seizures containedin Chapter V shall apply to the property in respect of which letter of request is received from a court orcontracting State for attachment or confiscation of property.

5[(7) When any property in India is confiscated as a result of execution of a request from a contractingState in accordance with the provisions of this Act, the Central Government may either return suchproperty to the requesting State or compensate that State by disposal of such property on mutually agreedterms that would take into account deduction for reasonable expenses incurred in investigation,prosecution or judicial proceedings leading to the return or disposal of confiscated property.]

1. Subs. by Act 2 of 2013, s. 25, for certain words and figures (w.e.f. 15-2-2013).

2. Subs. by s. 25, ibid.,for "attachment or confiscation" (w.e.f. 15-2-2013).

3. Subs. by s. 25, ibid., for "section 3" (w.e.f. 15-2-2013).

4. Ins. by s. 25, ibid. (w.e.f. 15-2-2013).

5. Subs. by Act 20 of 2015, s. 150, for "Adjudicating Authority" (w.e.f. 14-5-2015).

6. Ins. by Act 21 of 2009, s. 12 (w.e.f. 1-6-2009).

Every letter of request, summons or warrant,received by the Central Government from, and every letter of request, summons or warrant, to betransmitted to a contracting State under this Chapter shall be transmitted to a contracting State or, as thecase may be, sent to the concerned Court in India and in such form and in such manner as the CentralGovernment may, by notification, specify in this behalf.

Any authority or officer exercising powers under this Act orany rules made thereunder, who, without reasons recorded in writing,--

(a) searches or causes to be searched any building or place; or

(b) detains or searches or arrests any person,

shall for every such offence be liable on conviction for imprisonment for a term which may extend to twoyears or fine which may extend to fifty thousand rupees or both.

(I) Any person wilfullyand maliciously giving false information and so causing an arrest or a search to be made under this Actshall on conviction be liable for imprisonment for a term which may extend to two years or with finewhich may extend to fifty thousand rupees or both.

(2) If any person,--

(a) being legally bound to state the truth of any matter relating to an offence under section 3,refuses to answer any question put to him by an authority in the exercise of its powers under this Act;or

(b) refuses to sign any statement made by him in the course of any proceedings under this Act,which an authority may legally require to sign; or

(c) to whom a summon is issued under section 50 either to attend to give evidence or producebooks of account or other documents at a certain place and time, omits to attend or produce books ofaccount or documents at the place or time,

he shall pay, by way of penalty, a sum which shall not be less than five hundred rupees but which mayextend to ten thousand rupees for each such default or failure.

(3) No order under this section shall be passed by an authority referred to in sub-section (2) unless theperson on whom the penalty is proposed to be imposed is given an opportunity of being heard in thematter by such authority.

1[(4) Notwithstanding anything contained in clause (c) of sub-section (2), a person who intentionallydisobeys any direction issued under section 50 shall also be liable to be proceeded against under section174 of the Indian Penal Code (45 of 1860).]

1. Ins. by Act 2 of 2013, s.26 (w.e.f. 15-2-2013).

(1) No court shall take cognizance of any offence under section 62 orsub-section (1) of section 63 except with the previous sanction of the Central Government.

(2) The Central Government shall, by an order, either give sanction or refuse to give sanction withinninety days of the receipt of the request in this behalf.

The provisions of the Code of CriminalProcedure, 1973 (2 of 1974) shall apply, in so far as they are not inconsistent with the provisions of thisAct, to arrest, search and seizure, attachment, confiscation investigation, prosecution and all otherproceedings under this Act.

1[(1)] The Director or any other authority specified by him by ageneral or special order in this behalf may furnish or cause to be furnished to--

(i) any officer, authority or body performing any functions under any law relating to imposition ofany tax, duty or cess or to dealings in foreign exchange, or prevention of illicit traffic in the narcoticdrugs and psychotropic substances under the Narcotic Drugs and Psychotropic Substances Act, 1985(61 of 1985); or

(ii) such other officer, authority or body performing functions under any other law as the CentralGovernment may, if in its opinion it is necessary so to do in the public interest, specify, bynotification in the Official Gazette, in this behalf, any information received or obtained by suchDirector or any other authority, specified by him in the performance of their functions under this Act,as may, in the opinion of the Director or the other authority, so specified by him, be necessary for thepurpose of the officer, authority or body specified in clause (i) or clause (ii) to perform his or itsfunctions under that law.

2[(2) If the Director or other authority specified under sub-section (1) is of the opinion, on the basis ofinformation or material in his possession, that the provisions of any other law for the time being in forceare contravened, then the Director or such other authority shall share the information with the concernedagency for necessary action.]

1. Section 66 numbered as sub-section (1) by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018).

2. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018).

No suit shall be brought in any civil court to set aside or modifyany proceeding taken or order made under this Act and no prosecution, suit or other proceeding shall lieagainst the Government or any officer of the Government for anything done or intended to be done ingood faith under this Act.

No notice, summons, order, document orother proceeding, furnished or made or issued or taken or purported to have been furnished or made orissued or taken in pursuance of any of the provisions of his Act shall be invalid, or shall be deemed to beinvalid merely by reason of any mistake, defect or omission in such notice, summons, order, document orother proceeding if such notice, summons, order, document or other proceeding is in substance and effectin conformity with or according to the intent and purpose of this Act.

1[69. Recovery of fine or penalty.u2014Where any fine or penalty imposed on any person under section13 or section 63 is not paid within six months from the day of imposition of fine or penalty, the Directoror any other officer authorised by him in this behalf may proceed to recover the amount from the saidperson in the same manner as prescribed in Schedule II of the Income-tax Act, 1961 (43 of 1961) for therecovery of arrears and he or any officer authorised by him in this behalf shall have all the powers of theTax Recovery Officer mentioned in the said Schedule for the said purpose.]

1. Subs. by Act 2 of 2013, s.27, for section 69 (w.e.f. 15-2-2013).

(1) Where a person committing a contravention of any of theprovisions of this Act or of any rule, direction or order made thereunder is a company, every person who,at the time the contravention was committed, was in charge of and was responsible to the company, forthe conduct of the business of the company as well as the company, shall be deemed to be guilty of thecontravention and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to punishmentif he proves that the contravention took place without his knowledge or that he exercised all due diligenceto prevent such contravention.

(2) Notwithstanding anything contained in sub-section (1), where a contravention of any of theprovisions of this Act or of any rule, direction or order made thereunder has been committed by acompany and it is proved that the contravention has taken place with the consent or connivance of, or isattributable to any neglect on the part of any director, manager, secretary or other officer of any company,such director, manager, secretary or other officer shall also be deemed to be guilty of the contraventionand shall be liable to be proceeded against and punished accordingly.

Explanation 1[1].--For the purposes of this section,--

(i) "company" means any body corporate and includes a firm or other association of individuals;and

(ii) "director", in relation to a firm, means a partner in the firm.

2[Explanation 2.--For the removal of doubts, it is hereby clarified that a company may be prosecuted,notwithstanding whether the prosecution or conviction of any legal juridical person shall be contingent onthe prosecution or conviction of any individual.]

1. Explanation shall be numbered as Explanation 1 by s.28, ibid. (w.e.f. 15-2-2013).

2. Ins. by Act 2 of 2013, s. 28 (w.e.f. 15-2-2013).

The provisions of this Act shall have effect notwithstandinganything inconsistent therewith contained in any other law for the time being in force.

(1) Where--

(a) any property of a persons has been attached under section 8 and no appeal against the orderattaching such property has been preferred; or

(b) any appeal has been preferred to the Appellate Tribunal, and--

(i) in a case referred to in clause (a), such person dies or is adjudicated an insolvent beforepreferring an appeal to the Appellate Tribunal; or

(ii) in a case referred to in clause (b), such person dies or is adjudicated an insolvent duringthe pendency of the appeal,

then, it shall be lawful for the legal representatives of such person or the official assignee or the officialreceiver, as the case may be, to prefer an appeal to the Appellate Tribunal or as the case may be, tocontinue the appeal before the Appellate Tribunal, in place of such person and the provisions ofsection 26 shall, so far as may be, apply, or continue to apply, to such appeal.

(2) Where--

(a) after passing of a decision or order by the Appellate Tribunal, no appeal has been preferred tothe High court under section 42; or

(b) any such appeal has been preferred to the High Court,--

then--

(i) in a case referred to in clause (a), the person entitled to file the appeal dies or is adjudicated aninsolvent before preferring an appeal to the High Court, or

(ii) in a case referred to in clause (b), the person who had filed the appeal dies or is adjudicated aninsolvent during the pendency of the appeal before the High Court,

then, it shall be lawful for the legal representatives of such person, or the official assignee or the officialreceiver, as the case may be, to prefer an appeal to the High Court or to continue the appeal before theHigh Court in place of such person and the provisions of section 42 shall, so far as may be, apply, orcontinue to apply, to such appeal.

(3) The powers of the official assignee or the official receiver under sub-section (1) or sub-section (2)shall be exercised by him subject to the provisions of the Presidency-towns Insolvency Act, 1909(3 of 1909) or the Provincial Insolvency Act, 1920 (5 of 1920), as the case may be.

(1) The Central Government may, by notification, make rules forcarrying out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules mayprovide for all or any of the following matters, namely:--

(a) the form in which records referred to in this Act may be maintained;

1[(aa) the manner of provisional attachment of property under sub-section (1) of section 5;]

(b) the manner in which the order and the material referred to in sub-section (2) of section 5 to be maintained;

(c) matters in respect of experience of Members under sub-section (3) of section 6;

(d) the salaries and allowances payable to and other terms and conditions of service of Membersof the Adjudicating Authority under sub-section (9) of section 6;

(e) the salaries and allowances payable to and other terms and conditions of service of the officersand employees of the Adjudicating Authority under sub-section (3) of section 7;

2[(ee) the manner of seizing or taking possession of property attached under section 5 or frozenunder sub-section (1A) of section 17 or under sub-section (4) of section 8;]

(f) the manner in which and the conditions subject to which the properties confiscated may bereceived and managed under sub-section (2) of section 10;

(g) the additional matters in respect of which the Adjudicating Authority may exercise the powersof a civil court under clause (f) of sub-section (1) of section 11;

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(i) 4[the nature and value of transactions and the time within which] the information oftransactions under clause (b) of sub- section (1) of section 12 shall be furnished;

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(jjj) the period of interval in which the reports are sent by the reporting entities or any of itsemployees under clause (c) of sub-section (2) of section 13;]

(k) the procedure and the manner of maintaining and furnishing information undersub-section (1) of section 12 as required under section 15;

(l) the manner in which the reasons and the material referred to in sub-section (2) of section 16shall be maintained;

(m) the rules relating to search and seizure under sub-section (1) of section 17;

(n) the manner in which the reasons and the material referred to in sub-section (2) of section 17 shall be maintained;

(o) the manner in which the reasons and the material referred to in sub-section (2) of section 18 shall be maintained;

(p) the manner in which the order and the material referred to in sub-section (2) of section 19 shall be maintained;

2[(pp) the manner in which the forwarding of the order for retention or continuation of freezing ofthe property and the period of keeping such order and material under sub-section (2) of section 20;]

(q) the manner in which records authenticated outside India may be received undersub-section (2) of section 22;

(r) the form of appeal and the fee for filing such appeal, under sub-section (3) of section 26;

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(u) the additional matters in respect of which the Appellate Tribunal may exercise the powers of acivil court under clause (i) of sub-section (2) of section 35;

7[(ua) conditions subject to which a police officer may be authorised to investigate into anoffence under sub-section (1A) of section 45;

(v) the additional matters in respect of which the authorities may exercise powers of a civil courtunder clause (f) of sub-section (1) of section 50;

(w) the rules relating to impounding and custody of records under sub-section (5) of section 50;

(x) any other matter which is required to be, or may be, prescribed.

1. Ins. by s. 29, ibid. (w.e.f. 15-2-2013).

2. Ins. by Act 2 of 2013, s. 29 (w.e.f. 15-2-2013).

3. Clause (h) omitted by s. 29, ibid. (w.e.f. 15-2-2013).

4. Subs. by s. 29, ibid., for "the time within which" (w.e.f. 15-2-2013).

5. Clauses (j) and (jj) omitted by Act 14 of 2019, s. 29 (w.e.f. 25-07-2019).

6. Clauses (s) and (t) omitted by Act 28 of 2016, s. 232 (w.e.f. 1-6-2016).

7. Ins. by Act 20 of 2005, s. 8 (w.e.f. 1-7-2005).

Every rule made under this Act shall be laid, as soon asmay be after it is made, before each House of Parliament, while it is in session, for a total period of thirtydays which may be comprised in one session or in two or more successive sessions, and if, before theexpiry of the session immediately following the session or the successive sessions aforesaid, both Housesagree in making any modification in the rule or both Houses agree that the rule should not be made, therule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so,however, that any such modification or annulment shall be without prejudice to the validity of anythingpreviously done under that rule.

(1) If any difficulty arises in giving effect to the provisions ofthis Act, the Central Government may, by order, published in the Official Gazette, make such provisionsnot inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty:

Provided that no order shall be made under this section after the expiry of two years from thecommencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.