THE PREVENTION OF MONEY-LAUNDERING ACT, 2002 
__________________ 

ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

CHAPTER II 

OFFENCE OF MONEY-LAUNDERING 

3.  Offence of money-laundering. 
4.  Punishment for money-laundering. 

CHAPTER III 

ATTACHMENT, ADJUDICATION AND CONFISCATION 

5.  Attachment of property involved in money-laundering. 
6.  Adjudicating Authorities, composition, powers, etc. 
7.  Staff of Adjudicating Authorities. 
8.  Adjudication. 
9.  Vesting of property in Central Government. 
10.  Management of properties confiscated under this Chapter. 
11.  Power regarding summons, production of documents and evidence, etc. 
11A. Verification of identity by reporting entity. 

CHAPTER IV 

OBLIGATIONS OF BANKING COMPANIES, FINANCIAL INSTITUTIONS AND INTERMEDIARIES 

12.  Reporting entity to maintain records. 
12A. Access to information. 
12AA. Enhanced due diligence. 
13.  Powers of Director to impose fine. 
14.  No civil or criminal proceedings against reporting entity, its directors and employees in certain 

cases. 

15. Procedure and manner of furnishing information by reporting entities. 

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CHAPTER V 

SUMMONS, SEARCHES AND SEIZURES, ETC. 

SECTIONS 

16.  Power of survey. 
17.  Search and seizure. 
18.  Search of persons. 
19.  Power to arrest. 
20.  Retention of property. 
21.  Retention of records. 
22.  Presumption as to records or property in certain cases. 
23.  Presumption in inter-connected transactions. 
24.  Burden of proof. 

CHAPTER VI 

APPELLATE TRIBUNAL 

25.  Appellate Tribunal. 
26.  Appeal to Appellate Tribunal. 
27.  [Omitted.]. 
28.  [Omitted.]. 
29.  [Omitted.]. 
30.  [Omitted.]. 
31.  [Omitted.]. 
32.  [Omitted.]. 
33.  [Omitted.]. 
34.  [Omitted.]. 
35.  Procedure and powers of Appellate Tribunal. 
36.  Distribution of business amongst Benches. 
37.  Power of Chairperson to transfer cases. 
38.  Decision to be by majority. 
39.  Right of appellant to take assistance of authorised representative and of Government to appoint 

presenting officers. 

40.  Members, etc., to be public servants. 
41.  Civil court not to have jurisdiction. 
42.  Appeal to High Court. 

43.  Special Courts. 
44.  Offences triable by Special Courts. 

CHAPTER VII 

SPECIAL COURTS 

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SECTIONS 

45.  Offences to be cognizable and non-bailable. 
46.  Application of Code of Criminal Procedure, 1973 to proceedings before Special Court. 
47.  Appeal and revision. 

CHAPTER VIII 

AUTHORITIES 

48.  Authorities under Act. 
49.  Appointment and powers of authorities and other officers. 
50.  Powers of authorities regarding summons, production of documents and to give evidence, etc. 
51.  Jurisdiction of authorities. 
52.  Power of Central Government to issue directions, etc. 
53.  Empowerment of certain officers. 
54.  Certain officers to assist in inquiry etc. 

RECIPROCAL ARRANGEMENT FOR ASSISTANCE IN CERTAIN MATTERS AND PROCEDURE FOR 
ATTACHMENT AND CONFISCATION OF PROPERTY 

CHAPTER IX 

55.  Definitions. 
56.  Agreements with foreign countries. 
57.  Letter of request to a contracting State in certain cases. 
58.  Assistance to a contracting State in certain cases. 

58A. Special Court to release the property. 

58B. Letter of request of a contracting State or authority for confiscation or release the property. 

59.  Reciprocal arrangements for processes and assistance for transfer of accused persons. 
60.  Attachment, seizure and confiscation, etc., of property in a contracting State or India. 
61.  Procedure in respect of letter of request. 

CHAPTER X 

MISCELLANEOUS 

62.  Punishment for vexatious search. 
63.  Punishment for false information or failure to give information, etc. 
64.  Cognizance of offences. 
65.  Code of Criminal Procedure, 1973 to apply. 
66.  Disclosure of information. 
67.  Bar of suits in civil courts. 
68.  Notice, etc., not to be invalid on certain grounds. 
69.  Recovery of fine or penalty. 
70.  Offences by companies. 
71.  Act to have overriding effect. 

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SECTIONS 

72.  Continuation of proceedings in the event of death or insolvency. 
72A. Inter-ministerial Co-ordination Committee. 
73.  Power to make rules. 
74.  Rules to be laid before Parliament. 
75.  Power to remove difficulties. 

THE SCHEDULE. 

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THE PREVENTION OF MONEY-LAUNDERING ACT, 2002 
ACT NO. 15 OF 2003 

[17th January, 2003.]  
An Act to prevent money-laundering and to provide for confiscation of property derived from, or 
involved in, money-laundering and for matters connected therewith or incidental thereto. 
WHEREAS  the  Political  Declaration  and  Global  Programme  of  Action,  annexed  to  the  resolution  
S-17/2 was adopted by the General Assembly of the United Nations at its seventeenth special session on 
the twenty-third day of February, 1990; 

AND  WHEREAS  the  Political  Declaration  adopted  by  the  Special  Session  of  the  United  Nations 
General  Assembly  held  on  8th  to  10th  June,  1998  calls  upon  the  Member  States  to  adopt  national  
money-laundering legislation and programme; 

AND WHEREAS it is considered necessary to implement the aforesaid resolution and the Declaration. 
BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:— 

CHAPTER I 
PRELIMINARY 

1. Short title, extent and commencement.—(1) This Act may be called the Prevention of Money-

laundering Act, 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  the 
Official  Gazette, appoint, and  different  dates  may  be  appointed  for  different  provisions of this  Act and 
any reference in any such provision to the commencement of this Act shall be construed as a reference to 
the coming into force of that provision. 

2. Definitions.—(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 2[referred to in] section 25; 
(c) “Assistant Director” means an Assistant Director appointed under sub-section (1) of section 

49; 

(d) “attachment” means prohibition of transfer, conversion, disposition or movement of property 

by an order issued under Chapter III; 

3[(da) “authorised person” means an authorised person as defined in clause (c) of section 2 of the 

Foreign Exchange Management Act, 1999 (42 of 1999);] 

(e) “banking company” means a banking company or a co-operative bank to which the Banking 
Regulation Act, 1949 (10 of 1949) applies and includes any bank or banking institution referred to in 
section 51 of that Act; 

(f) “Bench” means a Bench of the Appellate Tribunal; 
4[(fa)“beneficial  owner”  means  an  individual  who  ultimately  owns  or  controls  a  client  of  a 
reporting entity or the person on whose behalf a transaction is being conducted and includes a person 
who exercises ultimate effective control over a juridical person;] 

(g) “Chairperson” means the Chairperson of the Appellate Tribunal; 

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). 
2. Subs. by Act 28 of 2016, s. 232, for “established under” (w.e.f. 1-6-2016). 
3. Ins. by Act 21 of 2009, s. 2 (w.e.f. 1-6-2009). 
4. Ins. by Act 2 of 2013, s. 2 (w.e.f. 15-2-2013). 

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(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); 
1[(ha)“client” means a person who is engaged in a financial transaction or activity with a reporting 
entity and includes a person on whose behalf the person who engaged in the transaction or activity, is 
acting;] 

(i) “co-operative bank” shall have the same meaning as assigned to it in clause (dd) of section 2 

of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961); 

1[(ia)“corresponding  law”  means  any  law  of  any  foreign  country  corresponding  to  any  of  the 
provisions of this Act or dealing with offences in that country corresponding to any of the scheduled 
offences; 

(ib)“dealer” has the same meaning as assigned to it in clause  (b) of section 2 of the Central 

Sales Tax Act, 1956 (74 of 1956);] 

(j) “Deputy Director” means a Deputy Director appointed under sub-section (1) of section 49; 
2* 
* 
(k)  “Director”  or  “Additional  Director”  or  “Joint  Director”  means  a  Director  or  Additional 

* 

* 

* 

Director or Joint Director, as the case may be, appointed under sub-section (1) of section 49;  

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

(m) “housing finance institution” shall have the meaning as assigned to it in clause (d) of section 

2 of the National Housing Bank Act, 1987 (53 of 1987); 

4[(n) “intermediary” means,— 

(i)  a  stock-broker,  5***  share  transfer  agent,  banker  to  an  issue,  trustee  to  a  trust  deed, 
registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser or any 
other  intermediary  associated  with  securities  market  and  registered  under  section  12  of  the 
Securities 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  Securities 

Contracts (Regulation) Act, 1956 (42 of 1956);] 
6[(na)“investigation” includes all the proceedings under this Act conducted by the Director or by 

an 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)7***; 

1. Ins. by Act 2 of 2013, s. 2 (w.e.f. 15-2-2013). 
2. Clause (ja) omitted by s. 2, ibid. (w.e.f. 15-2-2013). 
3. Subs. by s. 2, ibid., for clause (l) (w.e.f. 15-2-2013). 
4. Subs. by s. 2, ibid., for clause (n) (w.e.f. 15-2-2013). 
5. The word “sub-broker,” omitted by Act 23 of 2019, s. 192 (w.e.f. 1-8-2019). 
6. Ins. by Act 20 of 2005, s. 2 (w.e.f. 1-7-2005). 
7.  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). 

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(r) “notification” means a notification published in the Official Gazette; 
1[(ra) “offence of cross border implications”, means— 

(i) any conduct by a person at a place outside India which constitutes an offence at that place 
and  which  would  have  constituted  an  offence  specified  in  Part  A,  Part  B  or  Part  C  of  the 
Schedule,  had  it  been  committed  in  India  and  if  such  person  2[transfers  in  any  manner]  the 
proceeds 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  been 
committed  in  India  and  the  proceeds  of  crime,  or  part  thereof  have  been  transferred  to  a  place 
outside India or any attempt has been made to transfer the proceeds of crime, or part thereof from 
India 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 or 
Part  B  of  the  Schedule  to  the  Act  before  the  commencement  of  the  Prevention  of  Money-
laundering (Amendment) Act, 2009 (21 of 2009); 

(rb)“payment system” means a system that enables payment to be effected between a payer and a 

beneficiary, involving clearing, payment or settlement service or all of them. 

Explanation.—For  the  purposes  of  this  clause,  “payment  system”  includes  the  systems 
enabling  credit  card  operations,  debit  card  operations,  smart  card  operations,  money  transfer 
operations or similar operations; 

(rc) “payment system operator” means a person who operates a payment system and such person 

includes 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, who 
owns or controls or manages, directly or indirectly, the activities or functions of payment system 
in India; 

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

(C)  in  the  case  of  a  company,  a  firm,  an  association  of  persons,  a  body  of  individuals,  an 
artificial  juridical  person,  whether  incorporated  or  not,  such  company,  firm,  association  of 
persons, body of individuals, artificial juridical person incorporated or registered outside India or 
existing as such and which owns or controls or manages, directly or indirectly, the activities or 
functions 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 

1. Ins. by Act 21 of 2009, s. 2 (w.e.f. 1-6-2009). 
2. Subs. by Act 2 of 2013, s. 2, for “remits” (w.e.f. 15-2-2013). 

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(vii) any agency, office or branch owned or controlled by any of the above persons mentioned 

in the preceding sub-clauses; 
1[(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 includes 

such activities associated with casino; 

2[(ii)  Inspector-General  of  Registration  appointed  under  section  3  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 notified 

by the Central Government; 

(v) person engaged in safekeeping and administration of cash and liquid securities on behalf 

of 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 as 

may be notified by the Central Government; 

(sc)“precious stone” means diamond, emerald, ruby, sapphire or any such other stone as may be 

notified 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  any 
person as a result of criminal activity relating to a scheduled offence or the value of any such property 
3[or where such property is taken or held outside the country, then the property equivalent in  value 
held within the country] 4[or abroad]; 

5[Explanation.—For the removal of doubts, it is hereby clarified that "proceeds of crime" include 
property not only derived or obtained from the scheduled offence but also any property which may 
directly  or  indirectly  be  derived  or  obtained  as  a  result  of  any  criminal  activity  relatable  to  the 
scheduled offence;] 

(v)  “property”  means  any  property  or  assets  of  every  description,  whether  corporeal  or 
incorporeal,  movable  or  immovable,  tangible  or  intangible  and  includes  deeds  and  instruments 
evidencing title to, or interest in, such property or assets, wherever located; 

1[Explanation.—For the removal of doubts, it is hereby clarified that the term “property” includes 
property  of  any  kind  used  in  the  commission  of  an  offence  under  this  Act  or  any  of  the  scheduled 
offences; 

(va)  “real  estate  agent”  means a  real  estate  agent  as defined  in  clause  (88)  of  section 65  of the 

Finance Act, 1994 (32 of 1994);] 

(w) “records” include the records maintained in the form of books or stored in a computer or such 

other form as may be prescribed; 

1[(wa)  “reporting  entity”  means  a  banking  company,  financial  institution,  intermediary  or  a 

person 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 
6[(ii) the offences specified under Part B of the Schedule if the total value involved in such 

offences is 7[one crore rupees] or more; or 

1. Ins. by Act 2 of 2013, s. 2 (w.e.f.  15-2-2013). 
2. Subs. by Act 23 of 2019, s. 192, for sub-clause (ii) (w.e.f. 1-8-2019). 
3. Ins. by Act 20 of 2015, s. 145 (w.e.f. 14-5-2015). 
4. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018). 
5. Ins. by Act 23 of 2019, s. 192 (w.e.f. 1-8-2019). 
6. Subs. by Act 21 of 2009, s. 2, for sub-clause (ii) (w.e.f. 1-6-2009). 
7. Subs. by Act 20 of 2015, s. 145, for “thirty lakh rupees” (w.e.f. 14-5-2015).  

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(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) of 

section 43; 

(za) “transfer” includes sale, purchase, mortgage, pledge, gift, loan or any other form of transfer 

of right, title, possession or lien; 

(zb)  “value”  means  the  fair  market  value  of  any  property  on  the  date  of  its  acquisition  by  any 
person, or if such date cannot be determined, the date on which such property is possessed by such 
person. 
(2)  Any  reference,  in  this  Act  or  the  Schedule,  to  any  enactment  or  any  provision  thereof  shall,  in 
relation to an area in which such enactment or such provision is not in force, be construed as a reference 
to the corresponding law or the relevant provisions of the corresponding law, if any, in force in that area. 
CHAPTER II 
OFFENCE OF MONEY-LAUNDERING 

3.  Offence  of  money-laundering.—Whosoever  directly  or  indirectly  attempts  to  indulge  or 
knowingly assists or knowingly is a party or is actually involved in any process or activity connected with 
the  1[proceeds  of  crime  including  its  concealment,  possession,  acquisition  or  use  and  projecting  or 
claiming] it as untainted property shall be guilty of offence of money-laundering. 
2[Explanation.—For the removal of doubts, it is hereby clarified that,— 

(i)  a  person  shall  be  guilty  of  offence  of  money-laundering  if  such  person  is  found  to  have 
directly or indirectly attempted to indulge or knowingly assisted or knowingly is a party or is actually 
involved  in  one  or  more  of  the following  processes or  activities connected  with  proceeds  of  crime, 
namely:— 

(a) concealment; or 
(b) possession; or 
(c) acquisition; or 
(d) use; or 
(e) projecting as untainted property; or 
(f) claiming as untainted property, 

in any manner whatsoever; 

(ii) the process or activity connected with proceeds of crime is a continuing activity and continues 
till such time a person is directly or indirectly enjoying the proceeds of crime by its concealment or 
possession  or  acquisition  or  use  or  projecting  it  as  untainted  property  or  claiming  it  as  untainted 
property in any manner whatsoever.] 
4.  Punishment  for  money-laundering.—Whoever  commits  the  offence  of  money-laundering  shall 
be punishable with rigorous imprisonment for a term which shall not be less than three years but which 
may extend to seven years and shall also be liable to fine 3***: 

Provided  that  where  the  proceeds  of  crime  involved  in  money-laundering  relates  to  any  offence 
specified under paragraph 2 of Part A of the Schedule, the provisions of this section shall have effect as if 
for the words “which may extend to seven years”, the words “which may extend to ten years” had been 
substituted. 

CHAPTER III 

ATTACHMENT, ADJUDICATION AND CONFISCATION 

5. Attachment of property involved in money-laundering.—4[(1)Where the Director or any other 
officer  not  below  the  rank  of  Deputy  Director  authorised  by  the  Director  for  the  purposes  of  this  

1. Subs. by Act 2 of 2013, s. 3, for “proceeds of crime and projecting” (w.e.f.  15-2-2013). 
2. Ins. by Act 23 of 2019, s. 193 (w.e.f. 1-8-2019). 
3. The words “which may extend to five lakh rupees” omitted by Act 2 of 2013,  s. 4 (w.e.f.  15-2-2013). 
4. Subs. by s. 5, ibid., for sub-section (1) (w.e.f. 15-2-2013). 

9 

 
 
 
                                                           
section,  has  reason  to  believe  (the  reason  for  such  belief  to  be  recorded  in  writing),  on  the  basis  of 
material 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  manner 
which  may  result  in  frustrating  any  proceedings  relating  to  confiscation  of  such  proceeds  of  crime 
under this Chapter, 

he may, by order in writing, provisionally attach such property for a period not exceeding one hundred 
and 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, a 
report  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 in 
that  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 other 
country: 

Provided  further  that,  notwithstanding  anything  contained  in  1[first  proviso],  any  property  of  any 
person  may  be  attached  under  this  section  if  the  Director  or  any  other  officer  not  below  the  rank  of 
Deputy Director authorised by him for the purposes of this section has reason to believe (the reasons for 
such  belief  to  be  recorded  in  writing),  on  the  basis  of  material  in  his  possession,  that  if  such  property 
involved in money-laundering is not attached immediately under this Chapter, the non-attachment of the 
property is likely to frustrate any proceeding under this Act.] 

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

(2) The Director, or any other officer not below the rank of Deputy Director, shall, immediately after 
attachment 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 may 
be prescribed and such Adjudicating Authority shall keep such order and material for such period as may 
be prescribed. 

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

(4)  Nothing  in  this  section  shall  prevent  the  person  interested  in  the  enjoyment  of  the  immovable 

property attached under sub-section (1) from such enjoyment. 

Explanation.—For the purposes of this sub-section, “person interested”, in relation to any immovable 

property, 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  such 
attachment before the Adjudicating Authority. 

6.  Adjudicating  Authorities,  composition,  powers,  etc.—(1)  The  Central  Government  shall,  by 
notification, appoint 4[an  Adjudicating Authority] to exercise jurisdiction, powers and authority conferred 
by or under this Act. 

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

1. Subs. by Act 20 of 2015, s. 146, for “clause (b)” (w.e.f. 14-5-2015). 
2. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018).   
3. Subs. by s. 208, ibid ., for “sub-section (2)” (w.e.f. 19-4-2018).   
4. Subs. by Act 21 of 2009, s. 4, for “one or more Adjudicating Authorities” (w.e.f.  1-6-2009). 

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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  Adjudicating 

Authority,— 

(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  that 

service; 

(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  Adjudicating 

Authority. 

(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 two 

Members 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 other 
places 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  each 

Bench of the Adjudicating Authority may exercise jurisdiction. 

(6) Notwithstanding anything contained in sub-section (5), the Chairperson may transfer a Member 

from 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 that 
the case or matter is of such a nature that it ought to be heard by a Bench consisting of two Members, the 
case 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 date 

on which he enters upon his office: 

Provided that no Chairperson or other Member shall hold office as such after he has attained the age 

of 1[sixty-five] years. 

(9) The salary and allowances payable to and the other terms and conditions of service of the Member 

shall be such as may be prescribed: 

Provided that neither the salary and allowances nor the other terms and conditions of service of the 

Member shall be varied to his disadvantage after appointment. 

(10) If, for reasons other than temporary absence, any vacancy occurs in the office of the Chairperson 
or any other Member, then, the Central Government shall appoint another person in accordance with the 
provisions of this Act to fill the vacancy and the proceedings may be continued before the Adjudicating 
Authority 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 the 

Central Government, resign his office: 

1. Subs. by Act 21 of 2009, s. 4, for “sixty-two” (w.e.f.  1-6-2009). 
11 

 
 
 
                                                           
Provided  that  the  Chairperson  or  any  other  Member  shall,  unless  he  is  permitted  by  the  Central 
Government to relinquish his office sooner, continue to hold office until the expiry of three months from the 
date of receipt of such notice or until a person duly appointed as his successor enters upon his office or 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 order made 

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 his death, 
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 this Act to fill such 
vacancy, enters upon his office. 

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

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

7.  Staff  of  Adjudicating  Authorities.—(1)  The  Central  Government  shall  provide  each  Adjudicating 

Authority with such officers and employees as that Government may think fit. 

(2)  The  officers  and  employees  of  the  Adjudicating  Authority  shall  discharge  their  functions  under  the 

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  the 

Adjudicating Authority shall be such as may be prescribed. 

8. Adjudication.—(1) On receipt of a complaint under sub-section (5) of section 5, or applications made 
under sub-section (4) of section 17 or under sub-section (10) of section 18, if the Adjudicating Authority has 
reason to believe that any person has committed an 1[offence under section 3 or is in possession of proceeds of 
crime],  it  may  serve  a  notice  of  not  less  than  thirty  days  on  such  person  calling  upon  him  to  indicate  the 
sources  of  his  income,  earning  or  assets,  out  of  which  or  by  means  of  which  he  has  acquired  the  property 
attached under sub-section (1) of section 5, or, seized 2[or frozen] under section 17 or section 18, the evidence 
on which he relies and other relevant information and particulars, and to show cause why all or any of such 
properties  should  not  be  declared  to  be  the  properties  involved  in  money-laundering  and  confiscated  by  the 
Central Government:  

Provided that where a notice under this sub-section specifies any property as being held by a person on 

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 shall  be 

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 this behalf; 

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 under sub-
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  been 
issued, such person shall also be given an opportunity of being heard to prove that the property is not involved 
in money-laundering. 

(3)  Where  the  Adjudicating  Authority  decides  under  sub-section  (2)  that  any  property  is  involved  in 
money-laundering, he shall, by an order  in writing, confirm the attachment of the property  made under sub-
section (1) of section 5 or retention of property or 3[record seized or frozen under section 17 or section 18 and 

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). 

12 

 
 
 
                                                           
record  a  finding  to  that  effect,  whereupon  such  attachment  or  retention  or  freezing  of  the  seized  or  frozen 
property] or record shall— 

(a) continue during 1[investigation for a period not exceeding 2[three hundred and sixty-five days] 
or] the pendency of the proceedings relating to any  3[offence under this Act before a court or under 
the  corresponding  law  of  any  other  country,  before  the  competent  court  of  criminal  jurisdiction 
outside India, as the case may be; and]  

4[(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 5[Special Court];] 

6[Explanation.—For the purposes of computing the period of three hundred and sixty-five days 
under clause (a), the period during which the investigation is stayed by any court under any law for 
the time being in force shall be excluded.] 
(4)  Where  the  provisional  order  of  attachment  made  under  sub-section  (1)  of  section  5  has  been 
confirmed under sub-section (3), the Director or any other officer authorised by him in this behalf shall 
forthwith take the 7[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) of 
section  17,  the  order  of  confiscation  shall  have  the  same  effect  as  if  the  property  had  been  taken 
possession of.] 

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

(6) Where on conclusion of a trial under this Act, the Special Court finds that the offence of money-
laundering has not taken place or the property is not involved in money-laundering, it shall order release 
of 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 the 
accused being declared a proclaimed offender or for any other reason or having commenced but could not 
be concluded, the Special Court shall, on an application moved by the Director or a person claiming to be 
entitled to possession of a property in respect of which an order has been passed under sub-section (3) of 
section 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.] 

9[(8)  Where  a  property  stands  confiscated  to  the  Central  Government  under  sub-section  (5),  the 
Special Court, in such manner as may be prescribed, may also direct the Central Government to restore 
such confiscated property or part thereof of a claimant with a legitimate interest in the property, who may 
have 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 claimant 
has acted in good faith and has suffered the loss despite having taken all reasonable precautions and is not 
involved in the offence of money laundering:] 

1[Provided further that the Special Court may, if it thinks fit, consider the claim of the claimant for the purposes 

of restoration of such properties during the trial of the case in such manner as may be prescribed.] 

9.  Vesting  of  property  in  Central  Government.—Where  an  order  of  confiscation  has  been  made 
under 10[sub-section (5) or sub-section (7) of section 8 or section 58B or sub-section (2A) of section 60] in  

1. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018). 
2. Subs. by Act 7 of 2019, s. 22, for “ninety days” (w.e.f. 20-3-2019). 
3. Subs. by Act 2 of 2013, s. 6, for “scheduled offence before a court; and” (w.e.f. 15-2-2013). 
4. Subs. by s. 6, ibid., for clause (b) (w.e.f. 15-2-2013). 
5. Subs. by Act 20 of 2015, s. 147, for “Adjudicating Authority” (w.e.f. 14-5-2015). 
6. Ins. by Act 7 of 2019, s. 22 (w.e.f. 20-3-2019). 
7. Subs. by Act 2 of 2013, s. 6, for “possession of the attached property” (w.e.f. 15-2-2013). 
8. Subs. by s. 6, ibid., for sub-sections (5) and (6) (w.e.f. 15-2-2013).  
9. Ins. by Act 20 of 2015, s. 147 (w.e.f. 14-5-2015). 
10. Subs. by Act 2 of 2013, s. 7, for “sub-section (6) of section 8” (w.e.f. 15-2-2013). 

13 

 
 
 
                                                           
respect of any property of a person, all the rights and title in such property shall vest absolutely in the 
Central Government free from all encumbrances: 

Provided  that  where  the  1[Special  Court  or  the  Adjudicating  Authority,  as  the  case  may  be,]  after 
giving  an  opportunity  of  being  heard  to  any  other  person  interested  in  the  property  attached  under  this 
Chapter, or seized 2[or frozen] under Chapter V, is of the opinion that any encumbrance on the property or 
or  lease-hold  interest  has  been  created  with  a  view  to  defeat  the  provisions  of this  Chapter,  it  may,  by 
order,  declare  such  encumbrance  or lease-hold  interest  to  be  void  and  thereupon  the aforesaid  property 
shall 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 in 

respect of such encumbrances which may be enforced against such person by a suit for damages. 

10.  Management  of  properties  confiscated  under  this  Chapter.—(1)  The  Central  Government 
may, by order published in the Official Gazette, appoint as many of its officers (not below the rank of a 
Joint 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  in 
relation to which an order has been made under  3[sub-section (5) or sub-section (6) or sub-section (7) of 
section 8 or section 58B or sub-section (2A) of section 60] in such manner and subject to such conditions 
as may be prescribed. 

(3)  The  Administrator  shall  also  take  such  measures,  as  the  Central  Government  may  direct,  to 

dispose of the property which is vested in the Central Government under section 9. 

11.  Power  regarding  summons,  production  of  documents  and  evidence,  etc.—(1)  The 
Adjudicating Authority shall, for the purposes of this Act, have the same powers as are vested in a civil 
court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit in respect of the following 
matters, namely:— 

(a) discovery and inspection; 

(b)  enforcing  the  attendance  of  any  person,  including  any  officer  of  a  banking  company  or  a 

financial 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, as 
the Adjudicating Authority may direct, and shall be bound to state the truth upon any subject respecting 
which 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  the 

meaning of section 193 and section 228 of the Indian Penal Code (45 of 1860). 

4[11A. Verification of Identity by Reporting Entity.—(1) Every Reporting Entity shall verify the 

identity of its clients and the beneficial owner, by— 

(a) authentication under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits 

and Services) Act, 2016 (18 of 2016) if the reporting entity is a banking company; or 

1. Subs. by Act 2 of 2013, s. 7, for “Adjudicating Authority” (w.e.f. 15-2-2013). 
2. Ins. by s.7, ibid. (w.e.f. 15-2-2013). 
3. Subs. by s. 8, ibid., for “sub-section (6) of section 8” (w.e.f. 15-2-2013). 
4. Ins. by Act 14 of 2019, s. 27 (w.e.f. 25-07-2019). 

14 

 
 
 
 
                                                           
(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 the 

Central Government in this behalf: 

Provided  that  the  Central  Government  may,  if  satisfied  that  a  reporting  entity  other  than  banking 
company, complies with such the standards of privacy and security under the Aadhaar (Targeted Delivery of 
Financial  and  Other  Subsidies,  Benefits  and  Services) Act,  2016  (18  of  2016),  and  it  is  necessary  and 
expedient 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 the 
Unique  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 the 
appropriate regulator. 

(2) If any reporting entity performs authentication under clause (a) of sub-section (1), to verify the identity of 
its 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 client 
or  beneficial  owner  who  is  sought  to  be  identified  and  no  client  or  beneficial  owner  shall  be  denied 
services for not having an Aadhaar number. 

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

(5) Nothing in this section shall prevent the Central Government from notifying additional safeguards 

on 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  the 
same  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).] 

CHAPTER IV 

OBLIGATIONS OF BANKING COMPANIES, FINANCIAL INSTITUTIONS AND INTERMEDIARIES 

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

(a)  maintain  a record  of  all  transactions, including  information  relating  to  transactions covered 

under 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 well 

* 

* 

* 

as account files and business correspondence relating to its clients. 
(2) Every information maintained, furnished or verified, save as otherwise provided under any law 

for 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 five 

years from the date of transaction between a client and the reporting entity. 

1. Subs. by Act 2 of 2013, s. 9, 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). 

15 

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

(5) The Central Government may, by notification, exempt any reporting entity or class of reporting 

entities from any obligation under this Chapter.] 

1[12A. Access to information.—(1) The Director may call for from any reporting entity any of the 
records referred to in  2[section 11A, sub-section (1) of section 12, sub-section (1) of section 12AA] and 
any additional information as he considers necessary for the purposes of this Act. 

(2) Every reporting entity shall furnish to the Director such information as may be required by him 

under 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 sought 

by the Director under sub-section (1), shall be kept confidential.] 

3[12AA. Enhanced due diligence.—(1) Every reporting entity shall, prior to the commencement of 

each specified transaction,— 

(a)  verify  the  identity  of  the  clients  undertaking  such  specified  transaction  by  authentication 
under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 
2016 (18 of 2016) in such manner and subject to such conditions, as may be prescribed: 

Provided that where verification requires authentication of a person who is not entitled to obtain 
an Aadhaar number under the provisions of the said Act, verification to authenticate the identity of 
the client undertaking such specified transaction shall be carried out by such other process or mode, 
as may be prescribed; 

(b)  take  additional  steps  to  examine  the  ownership  and  financial  position,  including  sources  of 

funds of the client, in such manner as may be prescribed; 

(c)  take  additional  steps  as  may  be  prescribed  to  record  the  purpose  behind  conducting  the 

specified transaction and the intended nature of the relationship between the transaction parties. 
(2) Where the client fails to fulfill the conditions laid down under sub-section (1), the reporting entity 

shall not allow the specified transaction to be carried out. 

(3)  Where  any  specified  transaction  or  series  of  specified  transactions  undertaken  by  a  client  is 
considered suspicious or likely to involve proceeds of crime, the reporting entity shall increase the future 
monitoring of the business relationship with the client, including greater scrutiny or transactions in such 
manner as may be prescribed. 

(4) The information obtained while applying the enhanced due diligence measures under sub-section 
(1) shall be maintained for a period of five years from the  date of transaction between a client and the 
reporting entity. 

Explanation.—For the purposes of this section, "specified transaction" means— 

(a) any withdrawal or deposit in cash, exceeding such amount; 
(b) any transaction in foreign exchange, exceeding such amount; 
(c) any transaction in any high value imports or remittances; 

1. Ins. by Act 2 of 2013, s. 10 (w.e.f. 15-2-2013). 
2. Subs. by Act 23 of 2019, s. 194, for “sub-section (1) of section 12” (w.e.f. 1-8-2019). 
3. Ins. s. 195, ibid. (w.e.f. 1-8-2019). 

16 

 
 
 
                                                           
(d) such other transaction or class of transactions, in the interest of revenue or where there is a 

high risk or money-laundering or terrorist financing,  

as may be prescribed.] 

13. Powers of Director to impose fine.—(1) The Director may, either of his own motion or on an 
application  made  by  any  authority,  officer  or  person,  1[make  such  inquiry  or  cause  such  inquiry  to  be 
made,  as  he  thinks  fit  to  be  necessary,  with regard to  the  obligations  of the  reporting  entity,  under  this 
Chapter]. 

2[(1A) If at any stage of inquiry or any other proceedings before him, the Director having regard to the 
nature  and  complexity  of  the  case,  is  of  the  opinion  that  it  is  necessary  to  do  so,  he  may  direct  the 
concerned reporting entity to get its records, as may be specified, audited by an accountant from amongst 
a 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 Central 

Government.] 

3[(2) If the Director, in the course of any inquiry, finds that a reporting entity or its designated director 
on 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, to 

comply with specific instructions; or 

(c) direct such reporting entity or its designated director on the Board or any of its employees, to 

send 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 on 
the 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  banking 
company,  financial  institution  or  intermediary  or  person  who  is  a  party  to  the  proceedings  under  that  
sub-section. 

4[Explanation.—For  the  purpose  of  this  section,  “accountant”  shall  mean  a  chartered  accountant 

within the meaning of the Chartered Accountants Act, 1949 (38 of 1949).] 

5[14.  No  civil  or  criminal  proceedings  against  reporting  entity,  its  directors  and  employees  in 
certain  cases.—Save  as  otherwise  provided  in  section  13,  the  reporting  entity,  its  directors  and 
employees shall not be liable to any civil or criminal proceedings against them for furnishing information 
under clause (b) of sub-section (1) of section 12.] 

6[15.  Procedure  and  manner  of  furnishing  information  by  reporting  entities.—  The  Central 
Government may, in consultation with the Reserve Bank of India, prescribe the procedure and the manner 
of  maintaining  and furnishing  information  by  a reporting  entity  under  7[section 11A,  sub-section (1)  of 

1. Subs. by Act 2 of 2013, s. 11, 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). 
5. Subs. by s. 12, ibid., for section 14 (w.e.f. 15-2-2013). 
6. Subs. by s. 13, ibid., for section 15 (w.e.f. 15-2-2013). 
7. Subs. by Act 23 of 2019, s. 196, for “sub-section (1) of section 12” (w.e.f. 1-8-2019). 

17 

 
 
 
                                                           
section 12 and sub-section (1) of section 12AA] for the purpose of implementing the provisions of this 
Act.] 

CHAPTER V 

SUMMONS, SEARCHES AND SEIZURES, ETC. 

16. Power of survey.—(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 such 
belief to be recorded in writing) that an offence under section 3 has been committed, he may enter any 
place— 

(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  any 
proprietor, 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 be 

available at such place; 

(ii) afford him the necessary facility to check or verify the proceeds of crime or any transaction 

related 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,  or 

relevant to, any proceedings under this Act. 

Explanation—For  the  purposes  of  this  sub-section,  a  place,  where  an  act  which  constitutes  the 
commission of the offence is carried on, shall also include any other place, whether any activity is carried 
on therein or not, in which the person carrying on such activity states that any of his records or any part of 
his 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  that  
sub-section immediately after completion of survey, forward a copy of the reasons so recorded along with 
material  in  his  possession,  referred  to  in  that  sub-section,  to  the  Adjudicating  Authority  in  a  sealed 
envelope, in the manner as may be prescribed and such Adjudicating Authority shall keep such reasons 
and 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 made 

extracts 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 relevant 

to, any proceeding under this Act. 
17. Search and seizure.—(1) Where 1[the Director or any other officer not below the rank of Deputy 
Director 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 

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

18 

 
 
 
 
 
                                                           
(iii) is in possession of any records relating to money-laundering,1[or] 

1[(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 suspect 

that such records or proceeds of crime are kept; 

(b) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising 

the 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 or 1[property, if required or] make or cause to be 

made 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  or 

property, in respect of all matters relevant for the purposes of any investigation under this Act: 

2* 

* 

* 

* 

* 

3[(1A)  Where  it  is  not  practicable  to  seize  such  record  or  property,  the  officer  authorised  under            

sub-section  (1),  may  make  an  order  to  freeze  such  property  whereupon  the  property  shall  not  be 
transferred or otherwise dealt with, except with the prior permission of the officer making such order, and 
a 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 section 
8  or  section  58B  or sub-section  (2A)  of  section  60,  it  becomes  practical to  seize  a  frozen  property,  the 
officer authorised under sub-section (1) may seize such property.] 

(2) The authority, who has been authorised under sub-section (1) shall, immediately after search and 
seizure  3[or  upon  issuance  of  a  freezing  order],  forward  a  copy  of  the  reasons  so  recorded  along  with 
material  in  his  possession,  referred  to  in  that  sub-section,  to  the  Adjudicating  Authority  in  a  sealed 
envelope, in the manner, as may be prescribed and such Adjudicating Authority shall keep such reasons 
and material for such period, as may be prescribed. 

(3)  Where  an  authority,  upon  information obtained  during  survey  under  section  16, is  satisfied that 
any evidence shall be or is likely to be concealed or tampered with, he may, for reasons to be recorded in 
writing, 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  this 

sub-section. 

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

1. Ins. by Act 2 of 2013, s. 14 (w.e.f. 15-2-2013). 
2. The Proviso omitted by Act 23 of 2019, s. 197 (w.e.f. 1-8-2019). 
3. Ins. by Act 2 of 2013, s. 14 (w.e.f. 15-2-3013). 
4. Subs. by s. 14, ibid., for sub-section (4) (w.e.f. 15-2-2013). 

19 

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

1* 

* 

* 

* 

* 

(2) The authority, who has been authorised under sub-section (1) shall, immediately after search and 
seizure, forward a copy of the reasons so recorded along with material in his possession, referred to in that 
sub-section, to the Adjudicating Authority in a sealed envelope, in the manner, as may be prescribed and 
such 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 such 
person 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  journey 
undertaken to take such person to the nearest Gazetted Officer, superior in rank to him, or Magistrate’s 
Court. 

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

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

(5) The Gazetted Officer or the Magistrate before whom any such person is brought shall, if he  sees 
no reasonable ground for search, forthwith discharge such person but otherwise shall direct that search be 
made. 

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

(7) The authority shall prepare a list of record or property seized in the course of the search and obtain 

the 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)  or  

sub-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 thirty 
days from such seizure, file an application requesting for retention of such record or property, before the 
Adjudicating Authority. 

* 

* 

* 

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

1. The proviso omitted by Act 23 of 2019, s. 198  (w.e.f. 1-8-2019). 
2. The proviso omitted by Act 21 of 2009 s. 8 (w.e.f. 1-6-2009). 

20 

 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
                                                           
(2)  The  Director,  Deputy  Director,  Assistant  Director  or  any  other  officer  shall,  immediately  after 
arrest  of  such  person  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  may  be  prescribed  and  such  Adjudicating  Authority  shall  keep  such  order  and  material  for 
such period, as may be prescribed. 

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

Provided that the period of twenty-four hours shall exclude the time necessary for the journey from 

the place of arrest to the 2[Special Court or] Magistrate’s Court. 

2[20.Retention of property.—(1) Where any property has been seized under section 17 or section 18 
or 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 by 
him in writing) that such property is required to be retained for the purposes of adjudication under section 
8, such property may, if seized, be retained or if frozen, may continue to remain frozen, for a  period not 
exceeding one hundred and eighty days from the day on which such property was seized or frozen, as the 
case may be. 

(2) The officer authorised by the Director shall, immediately after he has passed an order for retention 
or 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  Adjudicating 
Authority,  in  a  sealed  envelope,  in  the  manner  as  may  be  prescribed  and  such  Adjudicating  Authority 
shall 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  the 
person  from  whom  such  property  was  seized  or  whose  property  was  ordered  to  be  frozen  unless  the 
Adjudicating  Authority  permits  retention  or  continuation  of  freezing  of  such  property  beyond  the  said 
period. 

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

(5)  After  passing  the  order  of  confiscation  under  sub-section  (5)  or  sub-section  (7)  of  section  8, 
3[Special  Court],  shall  direct  the  release  of  all  property  other  than  the  property  involved  in  
money-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  4[Special Court] under sub-section 
(6) of section 8 or by the Adjudicating Authority under section 58B or sub-section (2A) of section 60, the 
Director or any officer authorised by him in this behalf may withhold the release of any such property for 
a period of ninety days from the date of 5[receipt of] such order, if he is of the opinion that such property 
is relevant for the appeal proceedings under this Act. 

21. Retention of records.—(1) Where any records have been seized, under section 17 or section 18 
or  frozen  under  sub-section  (1A)  of  section  17  and  the  Investigating  Officer  or  any  other  officer 
authorised by the Director in this behalf has reason to believe that any of such records are required to be 
retained for any inquiry under this Act, such records may if seized, be retained or if frozen, may continue 

1. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018).  
2. Subs. by Act 2 of 2013, s.16, for sections 20 and 21 (w.e.f. 15-2-2013). 
3. 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). 
4. Subs. by s. 148, ibid., for “Court” (w.e.f. 14-5-2015). 
5. Ins. by s. 148, ibid. (w.e.f. 14-5-2015). 

21 

 
 
 
                                                           
to remain frozen, for a period not exceeding one hundred and eighty days from the day on which such 
records 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 the 
person  from  whom  such  records  were  seized  or  whose  records  were  ordered  to  be  frozen  unless  the 
Adjudicating  Authority  permits  retention  or  continuation  of  freezing  of  such  records  beyond  the  said 
period. 

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

(5) After passing of an order of confiscation  1[or release under sub-section (5) or sub-section (6) or 
sub-section (7) of section 8 or section 58B or sub-section (2A) of section 60], the Adjudicating Authority 
shall 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 2[Adjudicating Authority under 
sub-section  (5)  of  section  21],  the  Director  or  any  other  officer  authorised  by  him  in  this  behalf  may 
withhold  the  release  of  any  such  record  for  a  period  of  ninety  days  from  the  date  of  3[receipt  of]  such 
order, if he is of the opinion that such record is relevant for the appeal proceedings under this Act.] 

22. Presumption as to records or property in certain cases.—(1) Where any records or property 
are or is found in the possession or control of any person in the course of a survey or a search4[or where 
any  record  or  property  is  produced  by  any  person  or  has  been  resumed  or  seized  from  the  custody  or 
control  of  any  person  or  has  been  frozen  under  this  Act  or  under  any  other  law  for  the  time  being  in 
force,] 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 of 
any particular person or which may reasonably be assumed to have been signed by, or to be in the 
handwriting of, any particular person, are in that person’s 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 to 
have been so stamped, executed or attested. 

(2) Where any records have been received from any place outside India, duly authenticated by such 
authority 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  the 
handwriting of any particular person or which the court may reasonably assume to have been signed 
by, or to be in the handwriting of, any particular person,  is in that person’s handwriting; and in the 
case  of  a  record  executed  or  attested,  that  it  was  executed  or  attested  by  the  person  by  whom  it 
purports to have been so executed or attested; 

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

is otherwise admissible in evidence. 

23. Presumption in inter-connected transactions.—Where money-laundering involves two or more 
inter-connected  transactions  and  one  or  more  such  transactions  is  or  are  proved  to  be  involved  in  

1. Subs. by Act 20 of 2015, s. 149,  for “under sub-section (5) or sub-section (7) of section 8” (w.e.f. 14-5-2015). 
2. Subs. by s. 149, ibid., for  certain words, brackets, figures and letters  (w.e.f. 14-5-2015). 
3. Ins. by s. 149, ibid. (w.e.f. 14-5-2015). 
4. Ins. by Act 2 of 2013, s.17 (w.e.f. 15-2-2013). 

22 

 
 
 
                                                           
money-laundering, then for the purposes of adjudication or confiscation 1[under section 8 or for the trial 
of the money-laundering offence, it shall unless otherwise proved to the satisfaction of the Adjudicating 
Authority  or  the  Special  Court],  be  presumed  that  the  remaining  transactions  from  part  of  such  inter-
connected transactions. 

2[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,  the 
Authority  or  Court  shall,  unless  the  contrary  is  proved,  presume  that  such  proceeds  of  crime  are 
involved in money-laundering; and 

(b) in the case  of  any  other  person the  Authority  or Court,  may  presume  that  such  proceeds of 

crime are involved in money-laundering.] 

CHAPTER VI 

APPELLATE TRIBUNAL 

3[25. Appellate Tribunal.—The Appellate Tribunal constituted under sub-section (1) of section 12 of 
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  and  the 
other authorities under this Act.] 

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

(2)  Any  4[reporting  entity]  aggrieved  by  any  order  of  the  Director  made  under  sub-section  (2)  of 

section 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 of 
forty-five  days  from  the  date  on  which  a  copy  of  the  order  made  by  the  Adjudicating  Authority  or 
Director 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  an 
appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause 
for not filing it within that period. 

(4) On receipt of an appeal under sub-section (1) or sub-section (2), the Appellate Tribunal may, after 
giving 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 and 

to 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 be 
dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal 
finally within six months from the date of filing of the appeal. 

27. [Compositions, etc., of Appellate Tribunal.] Omitted by the Finance Act, 2016 (28 of 2016), s. 232 

(w.e.f. 1-6-2016). 

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

1. Subs. by Act 2 of 2013, s.18, for certain words and figure (w.e.f. 15-2-2013). 
2. Subs. by s.19, ibid., for section 24 (w.e.f. 15-2-2013). 
3. Subs. by Act 28 of 2016, s. 232, for section 25 (w.e.f. 1-6-2016). 
4. Subs. by Act 2 of 2013, s. 20, for “banking company, financial institution or intermediary” (w.e.f. 15-2-2013). 

23 

 
 
 
                                                           
29.  [Term  of  office.]  Omitted  by  the  Prevention  of  Money-laundering  (Amendment)  Act,  2005                   

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

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

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

 33.  [Member  to  act  as  Chairperson  in  certain  circumstances.]  Omitted  by  s.  232,  ibid.                        

(w.e.f. 1-6-2016). 

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

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

(2) The Appellate Tribunal shall have, for the purposes of discharging its functions under this Act, the 
same  powers  as  are  vested  in  a  civil  court  under  the  Code  of  Civil  Procedure,  1908  (5  of  1908)  while 
trying 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  of 
1872),  requisitioning  any  public record or document or  copy  of such  record  or document  from  any 
office; 

(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 it 

ex 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  Appellate 
Tribunal as a decree of civil court and, for this purpose, the Appellate Tribunal shall have all the powers 
of a civil court. 

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

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

36.  Distribution  of  business  amongst  Benches.—Where  any  Benches  are  constituted,  the 
1[Chairman] may, from time to time, by notification, make provisions as to the distribution of the business 

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

24 

 
 
 
                                                           
of the Appellate Tribunal amongst the Benches and also provide for the matters which may be dealt with 
by each Bench. 

37.  Power  of  1[Chairman]  to  transfer  cases.—On  the  application  of  any  of  the  parties  and  after 
notice to the parties, and after hearing such of them as he may desire to be heard, or on his own motion 
without  such  notice, the  1[Chairman]  may  transfer  any  case  pending  before one  Bench, for disposal, to 
any other Bench. 

38. Decision to be by majority.—If the Members of a Bench consisting of two Members differ in 
opinion on any point, they shall state the point or points on which they differ, and make a reference to the 
1[Chairman] who shall either hear the point or points himself or refer the case for hearing on such point or 
points by  1[third Member] of the Appellate Tribunal and such point or points shall be decided according 
to  the  opinion  of  the  majority  of  the  Members  of  the  Appellate  Tribunal  who  have  heard  the  case, 
including those who first heard it. 

39.  Right  of  appellant  to  take  assistance  of  authorised  representative  and  of  Government  to 
appoint presenting officers.—(1) A person preferring an appeal to the Appellate Tribunal under this Act 
may either appear in person or take the assistance of an authorised representative of his choice to present 
his case before the Appellate Tribunal. 

Explanation.—For the purposes of this sub-section, the expression  “authorised representative” shall 
have 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 or 
any of its officers to act as presenting officers and every person so authorised may present the case  with 
respect to any appeal before the Appellate Tribunal. 

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

41. Civil court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit 
or  proceeding  in  respect  of  any  matter  which  the  Director,  an  Adjudicating  Authority  or  the  Appellate 
Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court 
or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or 
under this Act. 

42.  Appeal  to  High  Court.—Any  person  aggrieved  by  any  decision  or  order  of  the  Appellate 
Tribunal may file an appeal to the High Court within sixty days from the date of communication of the 
decision 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  sufficient 
cause  from  filing  the  appeal  within  the  said  period,  allow  it  to  be  filed  within  a  further  period  not 
exceeding 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 carries 

on business or personally works for gain; and 

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

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

25 

 
 
 
                                                           
CHAPTER VII 

SPECIAL COURTS 

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

Explanation.—In  this  sub-section,  “High  Court”  means  the  High  Court  of  the  State  in  which  a 

Sessions 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 an 
offence  referred  to  in  sub-section  (1),  with  which  the  accused  may,  under  the  Code  of  Criminal 
Procedure, 1973 (2 of 1974), be charged at the same trial. 

44.  Offences  triable  by  Special  Courts.—(1)  Notwithstanding  anything  contained  in  the  Code  of 

Criminal Procedure, 1973 (2 of 1974),— 

1[(a) an offence punishable under section 4 and any scheduled offence connected to the offence 
under that section shall be triable by the Special Court constituted for the area in which the offence 
has 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 behalf 
under this Act take 3[cognizance of offence under section 3, without the accused being committed to 
it for trial]; 

4[Provided that after conclusion of investigation, if no offence of money-laundering is made out 
requiring filing of such complaint, the said authority shall submit a closure report before the Special 
Court; or] 

5[(c) if the court which has taken cognizance of the scheduled offence is other than the Special 
Court  which  has  taken  cognizance  of  the  complaint  of  the  offence  of  money-laundering  under  
sub-clause  (b),  it  shall,  on  an  application  by  the  authority  authorised  to  file  a  complaint  under  this 
Act,  commit  the  case  relating  to  the  scheduled  offence  to  the  Special  Court  and  the  Special  Court 
shall, 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 shall 
hold trial in accordance with the provisions of the Code of Criminal Procedure, 1973 ( 2 of 1974) as it 
applies to a trial before a Court of Session.] 

4[Explanation.—For the removal of doubts, it is clarified that,— 

(i) the jurisdiction of the Special Court while dealing with the offence under this Act, during 
investigation,  enquiry  or trial  under this  Act, shall  not  be  dependent upon any  orders  passed in 
respect of the scheduled offence, and the trial of both sets of offences by the same court shall not 
be construed as joint trial; 

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 Act 

20 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 Act 23 of 2019, s. 199 (w.e.f. 1-8-2019). 
5. Ins. by Act 2 of 2013, s. 21 (w.e.f. 15-2-2013). 

26 

 
 
 
                                                           
(ii) the complaint shall be deemed to include any subsequent complaint in respect of further 
investigation that may be conducted to bring any further evidence, oral or documentary, against 
any  accused  person  involved  in  respect  of  the  offence,  for  which  complaint  has  already  been 
filed, whether named in the original complaint or not.] 

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

45. Offences to be cognizable and non-bailable.—(1)  1[Notwithstanding anything contained in the 
Code of Criminal Procedure, 1973 (2 of 1974), no person accused of an offence 2[under this Act] shall be 
released on bail or on his own bond unless—] 

(i)  the  Public  Prosecutor  has  been  given  a  opportunity  to  oppose  the  application  for  such 

release; and 

(ii) where the Public Prosecutor opposes the application, the court is satisfied that there are 
reasonable grounds for believing that he is not guilty of such offence and that he is not likely to 
commit 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[or 
is accused either on his own or along with other co-accused of money-laundering a sum of less than one 
crore 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  under 

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

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

6[Explanation.—For  the  removal  of  doubts,  it  is  clarified  that  the  expression  "Offences  to  be 
cognizable  and  non-bailable"  shall  mean  and  shall  be  deemed  to  have  always  meant  that  all  offences 
under  this  Act  shall  be  cognizable  offences  and  non-bailable  offences  notwithstanding  anything  to  the 
contrary  contained  in  the  Code  of  Criminal  Procedure,  1973  (2  of  1974),  and  accordingly  the  officers 
authorised under this Act are empowered to arrest an accused without warrant, subject to the fulfillment 
of conditions under section 19 and subject to the conditions enshrined under this section.] 

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 the 

Schedule” (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). 
6. The Explanation ins. by Act 23 of 2019, s. 200 (w.e.f. 1-8-2019). 
27 

 
 
 
                                                           
46. Application of Code of Criminal Procedure, 1973 to proceedings before Special Court.—(1) 
Save  as  otherwise  provided  in  this  Act,  the  provisions  of  the  Code  of  Criminal  Procedure,  1973  (2  of 
1974)  (including  the  provisions  as  to  bails  or  bonds),  shall  apply  to  the  proceedings  before  a  Special 
Court  and  for  the  purposes  of  the  said  provisions,  the  Special  Court  shall  be  deemed  to  be  a  Court  of 
Session  and  the  persons  conducting  the  prosecution  before  the  Special  Court,  shall  be  deemed  to  be  a 
Public Prosecutor: 

Provided  that  the  Central  Government  may  also  appoint  for  any  case  or  class  or  group  of  cases  a 

Special Public Prosecutor. 

(2)  A  person  shall  not  be  qualified  to  be  appointed  as  a  Public  Prosecutor  or  a  Special  Public 
Prosecutor 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 section 
shall be deemed to be a Public Prosecutor within the meaning of clause (u) of section 2 of the Code of 
Criminal Procedure, 1973 (2 of 1974) and the provisions of that Code shall have effect accordingly. 

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

CHAPTER VIII 

AUTHORITIES 

48. Authorities under Act.—There shall be the following classes of authorities for the purposes of 

this 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. 

49. Appointment and powers of authorities and other officers.—(1) The Central Government may 

appoint 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 the 
Director  or  an  Additional  Director  or  a  Joint  Director  or  a  Deputy  Director  or  an  Assistant  Director 
appointed 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 authority 

may exercise the powers and discharge the duties conferred or imposed on it under this Act. 

50.  Powers  of  authorities  regarding  summons,  production  of  documents  and  to  give  evidence, 
etc.—(1) The Director shall, for the purposes of section 13, have the same powers as are vested in a civil 
court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit in respect of the following 
matters, namely:— 

(a) discovery and inspection; 

28 

 
 
 
 
(b)  enforcing  the  attendance  of  any  person,  including  any  officer  of  a  1[reporting  entity]  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) The Director, Additional Director, Joint Director, Deputy Director or Assistant Director shall have 
power  to  summon  any  person  whose attendance  he  considers necessary  whether  to  give  evidence  or to 
produce 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, as 
such officer may direct, and shall be bound to state the truth upon any subject respecting which they are 
examined 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  proceeding 

within 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  in  
sub-section  (2)  may  impound  and  retain  in  his  custody  for  such  period,  as  he  thinks  fit,  any  records 
produced 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 obtaining 

the previous approval of the 2[Joint Director]. 
51.  Jurisdiction  of  authorities.—(1)  The  authorities  shall  exercise  all  or  any  of  the  powers  and 
perform all or any of the functions conferred on, or, assigned, as the case may be, to such authorities by or 
under  this  Act  or  the  rules  framed  thereunder  in  accordance  with  such  directions  as  the  Central 
Government may issue for the exercise of powers and performance of the functions by all or any of the 
authorities. 

(2) In issuing the directions or orders referred to in sub-section (1), the Central Government may have 

regard 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. 

52. Power of Central Government to issue directions, etc.—The Central Government  may, from 
time  to  time,  issue  such  orders, instructions  and  directions  to  the  authorities  as  it  may  deem  fit  for  the 
proper administration of this Act and such authorities and all other persons employed in execution of this 
Act 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. 

53. Empowerment of certain officers.—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 Government 
to act as an authority under this Act: 

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).  

29 

 
 
 
                                                           
Provided  that  the  Central  Government  may  empower  an  officer  below  the  rank  of  Director  if  the 

officer of the rank of the Director or above are not available in a particular area. 

54.  Certain  officers  to  assist  in  inquiry,  etc.—The  following  1[officers  and  others]  are  hereby 

empowered 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 Psychotropic 

Substances Act, 1985 (61 of 1985);  

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

1961); 

2[(d)  members  of  the  recognised  stock  exchange  referred  to  in  clause  (f)  of  section  2  and  the 
officers  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  the 

Reserve 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 Exchange 

Management Act, 1999 (40 of 1999); 

(h)  officers  of  the  Securities  and  Exchange  Board  of  India  established  under  section  3  of  the 

Securities and Exchange Board of India Act, 1992 (15 of 1992); 

3[(ha) officers of the Insurance Regulatory and Development Authority established under section 

3 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  Forward 

Contracts (Regulation) Act, 1952 (74 of 1952); 

(hc)  officers  and  members  of  the  recognised  association  recognised  under  section  6  of  the 

Forward 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  the 

Registration Act, 1908 (16 of 1908); 

(hg) registering authority empowered to register motor vehicles under Chapter IV of  the Motor 

Vehicles Act, 1988 (59 of 1988); 

(hh)  officers  and  members  of  the  Institute  of  Chartered  Accountants  of  India  constituted  under 

section 3 of the Chartered Accountants Act, 1949 (38 of 1949); 

(hi)  officers  and  members  of  the  Institute  of  Cost  and  Works  Accountants  of  India  constituted 

under 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  under 

section 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 State 

Act; 

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). 

30 

 
 
 
                                                           
(j)  such  other  officers  of  the  Central  Government,  State  Government,  local  authorities  or 

1[reporting entities] as the Central Government may, by notification, specify, in this behalf. 

CHAPTER IX 

RECIPROCAL ARRANGEMENT FOR ASSISTANCE IN CERTAIN MATTERS AND PROCEDURE FOR 
ATTACHMENT AND CONFISCATION OF PROPERTY 

55. Definitions.—In this Chapter, unless the context otherwise requires,— 

(a) “contracting State” means any country or place outside India in respect of which arrangements 
have been made by the Central Government with the Government of such country through a treaty or 
otherwise; 

(b) “identifying” includes establishment of a proof that the property was derived from, or used in 

the commission of an offence under section 3; 

(c) “tracing” means determining the nature, source, disposition, movement, title or ownership of 

property. 

56. Agreements with foreign countries.—(1) The Central Government may enter into an agreement 

with 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  the 
corresponding law in force in that country or investigation of cases relating to any offence under this 
Act,  

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

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

57.  Letter  of  request  to  a  contracting  State  in  certain  cases.—(1)  Notwithstanding  anything 
contained  in  this  Act  or  the  Code  of  Criminal  Procedure,  1973  (2  of  1974)  if,  in  the  course  of  an 
investigation  into  an  offence  or  other  proceedings  under  this  Act,  an  application  is  made  to  a  Special 
Court  by  the  Investigating  Officer  or  any  officer  superior  in  rank  to  the  Investigating  Officer  that  any 
evidence 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 Special 
Court,  on  being  satisfied  that  such  evidence  is  required  in  connection  with  the  investigation  into  an 
offence  or  proceedings  under  this  Act,  may  issue  a  letter  of  request  to  a  court  or  an  authority  in  the 
contracting 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  of 

request. 

(2) The letter of request shall be transmitted in such manner as the Central Government may specify 

in this behalf. 

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

31 

 
 
 
                                                           
(3) Every statement recorded or document or thing received under sub-section (1) shall be deemed to 

be the evidence collected during the course of investigation. 

58. Assistance to a contracting State in certain cases.—Where a letter of request is received by the 
Central Government from a court or authority in a contracting State requesting for investigation into an 
offence or proceedings under this Act and forwarding to such court or authority any evidence connected 
therewith,  the  Central  Government  may  forward  such  letter  of  request  to  the  Special  Court  or  to  any 
authority under the Act as it thinks fit for execution of such request in accordance with the provisions of 
this 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 conclusion 
of a trial in a criminal court outside India under the corresponding law of any other country, such court 
finds that the offence of money-laundering has not taken place or the property in India is not involved in 
money-laundering,  the  Special  Court  may,  on  an  application  moved  by  the  concerned  person  or  the 
Director, after notice to the other party, order release of such property to the person entitled to receive it. 

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

59. Reciprocal arrangements for processes and assistance for transfer of accused persons.—(1) 

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 to 

produce 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 summons 
or warrant in duplicate in such form, to such Court, Judge or Magistrate through such authorities, as the 
Central Government may,  by notification,  specify in this behalf and that Court, Judge or Magistrate, as 
the 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  for 

service 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 to 

produce it, or 

(d) a search warrant,  

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

32 

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

(i)  a  warrant  of  arrest  has  been  executed,  the  person  arrested  shall  be  dealt  with  in  accordance 

with the procedure specified under section 19; 

(ii) a search warrant has been executed, the things found in this search shall, so far as possible, be 

dealt 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 been 
executed, the documents or other things produced or things found in the search shall be forwarded to the 
Court issuing the summons or search-warrant through such authority as the Central Government may, by 
notification, 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 Government 
deems fit.  

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

60. Attachment, seizure and confiscation, etc., of property in a contracting State or India.—(1) 
Where the Director has made an order for attachment of any  1[property under section 5 or for freezing 
under sub-section (1A) of section 17 or where an Adjudicating Authority has made an order relating to a 
property under section 8 or where a Special Court has made an order of confiscation relating to a property 
under sub-section (5) or sub section (6) of section 8] and such property is suspected to be in a contracting 
State,  the  Special  Court,  on  an  application  by  the  Director  or  the  Administrator  appointed  under  
sub-section (1) of section 10, as the case may be , may issue a letter of request to a court or an authority in 
the 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 a 
contracting  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 letter 
of 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 India 
under the corresponding law of any other country, such court finds that the offence of money-laundering  

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). 

33 

 
 
 
 
                                                           
under the corresponding law of that country has been committed, the 1[Special Court] shall, on receipt of 
an application from the Director for execution of confiscation under sub-section (2), order, after giving 
notice to the affected persons, that such property involved in money-laundering or which has been used 
for 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  any 

authority 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 respect 
of  any  person,  place,  property,  assets,  documents,  books  of  account  in  any  bank  or  public  financial 
institutions or any other relevant matters. 

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

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

2[(7) When any property in India is confiscated as a result of execution of a request from a contracting 
State  in  accordance  with  the  provisions  of  this  Act,  the  Central  Government  may  either  return  such 
property to the requesting State or compensate that State by disposal of such property on mutually agreed 
terms  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.] 

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

CHAPTER X 

MISCELLANEOUS 

62. Punishment for vexatious search.—Any authority or officer exercising powers under this Act or 

any 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 two 
years or fine which may extend to fifty thousand rupees or both. 

63. Punishment for false information or failure to give information, etc.—(I) Any person wilfully 
and maliciously giving false information and so causing an arrest  or a search to be made under this Act 
shall  on  conviction  be  liable  for  imprisonment  for  a  term  which  may  extend  to  two  years  or  with  fine 
which may extend to fifty thousand rupees or both. 

(2) If any person,— 

1. Subs. by Act 20 of 2015, s. 150, for “Adjudicating Authority” (w.e.f. 14-5-2015).  
2. Ins. by Act 21 of 2009, s. 12 (w.e.f. 1-6-2009). 

34 

 
 
 
 
                                                           
(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 produce 
books of account or other documents at a certain place and time, omits to attend or produce books of 
account 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 may 
extend 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 the 
person  on  whom  the  penalty  is  proposed  to  be  imposed  is  given  an  opportunity  of  being  heard  in  the 
matter by such authority. 

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

64. Cognizance of offences.—(1) No court shall take cognizance of any offence under section 62 or 

sub-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 within 

ninety days of the receipt of the request in this behalf. 

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

66.  Disclosure  of  information.—2[(1)]  The  Director  or  any  other  authority  specified  by  him  by  a 

general 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 of 
any tax, duty or cess or to dealings in foreign exchange, or prevention of illicit traffic in the narcotic 
drugs 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 Central 
Government  may,  if  in  its  opinion  it  is  necessary  so  to  do  in  the  public  interest,  specify,  by 
notification  in  the  Official  Gazette,  in  this  behalf,  any  information  received  or  obtained  by  such 
Director 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 the 
purpose  of  the  officer,  authority  or  body  specified  in  clause  (i)  or  clause  (ii)  to  perform  his  or  its 
functions under that law. 

1. Ins. by Act 2 of 2013, s.26 (w.e.f. 15-2-2013). 
2. Section 66 numbered as sub-section (1)  by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018).  

35 

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

67. Bar of suits in civil courts.—No suit shall be brought in any civil court to set aside or modify 
any proceeding taken or order made under this Act and no prosecution, suit or other proceeding shall lie 
against the  Government  or  any  officer  of  the  Government  for  anything  done  or  intended  to  be  done  in 
good faith under this Act. 

68. Notice, etc., not to be invalid on certain grounds.—No notice, summons, order, document or 
other proceeding, furnished or made or issued or taken or purported to have been furnished or made or 
issued or taken in pursuance of any of the provisions of his Act shall be invalid, or shall be deemed to be 
invalid merely by reason of any mistake, defect or omission in such notice, summons, order, document or 
other proceeding if such notice, summons, order, document or other proceeding is in substance and effect 
in conformity with or according to the intent and purpose of this Act. 

2[69. Recovery of fine or penalty.—Where any fine or penalty imposed on any person under section 
13 or section 63 is not paid within six months from the day of imposition of fine or penalty, the Director 
or  any  other officer  authorised by  him  in  this  behalf may  proceed to recover  the  amount  from  the  said 
person in the same manner as prescribed in Schedule II of the Income-tax Act, 1961 (43 of 1961) for the 
recovery of arrears and he or any officer authorised by him in this behalf shall have all the powers of the 
Tax Recovery Officer mentioned in the said Schedule for the said purpose.] 

70.  Offences  by  companies.—(1)  Where  a  person  committing  a  contravention  of  any  of  the 
provisions 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, for 
the conduct of the business of the company as well as the company, shall be deemed to be guilty of the 
contravention 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 punishment 
if he proves that the contravention took place without his knowledge or that he exercised all due diligence 
to prevent such contravention. 

(2)  Notwithstanding  anything  contained  in  sub-section  (1),  where  a  contravention  of  any  of  the 
provisions  of  this  Act  or  of  any  rule,  direction  or  order  made  thereunder  has  been  committed  by  a 
company and it is proved that the contravention has taken place with the consent or connivance of, or is 
attributable 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 contravention 
and shall be liable to be proceeded against and punished accordingly. 

Explanation 3[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. 

1. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018).  
2. Subs. by Act 2 of 2013, s. 27, for section 69 (w.e.f. 15-2-2013). 
3. Explanation shall be numbered as Explanation 1 by s. 28, ibid. (w.e.f. 15-2-2013) 

36 

 
 
 
                                                           
1[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 on 
the prosecution or conviction of any individual.] 

71.  Act  to  have  overriding  effect.—The  provisions  of  this  Act  shall  have  effect  notwithstanding 

anything inconsistent therewith contained in any other law for the time being in force. 

72. Continuation of proceedings in the event of death or insolvency.—(1) Where— 

(a) any property of a persons has been attached under section 8 and no appeal against the order 

attaching 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 before 

preferring an appeal to the Appellate Tribunal; or 

(ii) in a case referred to in clause (b), such person dies or is adjudicated an insolvent during 

the pendency of the appeal, 

then, it shall be lawful for the legal representatives of such person or the official assignee or the official 
receiver,  as  the  case  may  be,  to  prefer  an  appeal  to  the  Appellate  Tribunal  or  as  the  case  may  be,  to 
continue  the  appeal  before  the  Appellate  Tribunal,  in  place  of  such  person  and  the  provisions  of             
section 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 to 

the 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 an 

insolvent 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 an 

insolvent 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 official 
receiver, as the case may be, to prefer an appeal to the High Court or to continue the appeal before the 
High  Court  in  place  of  such  person  and  the  provisions  of  section  42  shall,  so  far  as  may  be,  apply,  or 
continue 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. 

2[72A. Inter-ministerial Co-ordination Committee.--The Central Government may, by notification, 
constitute  an  Inter-ministerial  Co-ordination  Committee  for  inter-departmental  and  inter-agency  co-
ordination for the following purposes, namely:— 

(a)  operational  co-operation  between  the  Government,  law  enforcement  agencies,  the  Financial 

Intelligence Unit, India and the regulators or supervisors; 

(b) policy co-operation and co-ordination across all relevant or competent authorities; 

1. Ins. by Act 2 of 2013, s. 28 (w.e.f. 15-2-2013). 
2. Ins. by Act 23 of 2019, s. 201 (w.e.f. 1-8-2019). 

37 

 
 
 
                                                           
(c) such consultation among the concerned authorities, the financial sector and other sectors, as 
are  appropriate,  and  are  related  to  anti  money-laundering  or  countering  the  financing  of  terrorism 
laws, regulations and guidelines; 

(d) development and implementing policies on anti money-laundering or countering the financing 

of terrorism; and 

(e) any other matter as the Central Government may, by notification, specify in this behalf.] 
73.  Power  to  make  rules.—(1)  The  Central  Government  may,  by  notification,  make  rules  for 

carrying out the provisions of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide 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 Members 

of 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 officers 

and employees of the Adjudicating Authority under sub-section (3) of section 7; 

1[(ee) the manner of seizing or taking possession of property attached under section 5 or frozen 

under 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  be 

received and managed under sub-section (2) of section 10; 

(g) the additional matters in respect of which the Adjudicating Authority may exercise the powers 

of a civil court under clause (f) of sub-section (1) of section 11; 

2* 

* 

* 

* 

* 

(i)  3[the  nature  and  value  of  transactions  and  the  time  within  which]  the  information  of 

transactions under clause (b) of sub- section (1) of section 12 shall be furnished; 

4* 
5[(jja)  the  manner  and  the  conditions  in  which  authentication  of  the  identity  of  clients  shall  be 

* 

* 

* 

* 

verified by the reporting entities under clause (a) of sub-section (1) of section 12AA; 

(jjb) the manner of identifying the ownership and financial position of the client under clause (b) 

of sub-section (1) of section 12AA; 

1. Ins. by Act 2 of 2013, s. 29 (w.e.f. 15-2-2013). 
2. Clause (h) omitted by s. 29, ibid. (w.e.f. 15-2-2013). 
3. Subs. by s. 29, ibid., for “the time within which” (w.e.f. 15-2-2013).  
4. Clauses (j) and (jj) omitted by Act 14 of 2019, s. 29 (w.e.f. 25-07-2019). 
5. Ins. by Act 23 of 2019, s. 202 (w.e.f. 1-8-2019). 

38 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
(jjc)  additional  steps  to  record  the  purpose  behind  conducting  the  specified  transaction  and  the 
intended nature of the relationship between the transaction parties under clause (c) of sub-section (1) 
of section 12AA; 

(jjd) manner of increasing the future monitoring under sub-section (3) of section 12AA.] 

(jjj)  the  period  of  interval  in  which  the  reports  are  sent  by  the  reporting  entities  or  any  of  its 

employees under clause (c) of sub-section (2) of section 13;] 

(k) 

the  procedure  and 

the  manner  of  maintaining  and  furnishing 

information  under  

sub-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 16 

shall 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; 

1[(pp) the manner in which the forwarding of the order for retention or continuation of freezing of 

the 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  under 

sub-section (2) of section 22; 

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

1* 

* 

* 

* 

* 

(u) the additional matters in respect of which the Appellate Tribunal may exercise the powers of a 

civil court under clause (i) of sub-section (2) of section 35;  

2[(ua)  conditions  subject  to  which  a  police  officer  may  be  authorised  to  investigate  into  an 

offence under sub-section (1A) of section 45;] 

(v) the additional matters in respect of which the authorities may exercise powers of a civil court 

under 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. 

74. Rules to be laid before Parliament.—Every rule made under this Act shall be laid, as soon as 
may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty 
days  which  may  be  comprised in  one session or  in  two  or  more  successive  sessions,  and if,  before  the 
expiry of the session immediately following the session or the successive sessions aforesaid, both Houses 
agree in making any modification in the rule or both Houses agree that the rule should not be made, the 
rule  shall  thereafter  have  effect  only  in  such  modified  form  or  be  of  no  effect, as  the  case  may  be;  so, 

1. Clauses (s) and (t) omitted by Act 28 of 2016, s. 232 (w.e.f. 1-6-2016). 
2. Ins. by Act 20 of 2005, s. 8 (w.e.f. 1-7-2005). 

39 

 
 
 
 
 
 
 
 
 
 
                                                           
however, that any such modification or annulment shall be without prejudice to the validity of anything 
previously done under that rule. 

75. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 
this Act, the Central Government may, by order, published in the Official Gazette, make such provisions 
not 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  the 

commencement 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. 

40 

 
 
 
 
THE SCHEDULE 

[See section 2(y)] 
1[PART A 
PARAGRAPH 1 

OFFENCES UNDER THE INDIAN PENAL CODE 
(45 OF 1860) 

Section 

120B 

121 

Criminal conspiracy. 

Description of offence 

Waging or attempting to wage war or abetting waging of war, against the Government of 
India. 

121A 

Conspiracy to commit offences punishable by section 121 against the State. 

255 

257 

258 

259 

260 

302 

304 

307 

308 

327 

329 

Counterfeiting Government stamp. 

Making or selling instrument for counterfeiting Government stamp. 

Sale of counterfeit Government stamp. 

Having possession of counterfeit Government stamp. 

Using as genuine a Government stamp known to be counterfeit. 

Murder. 

Punishment for culpable homicide not amounting to murder. 

Attempt to murder. 

Attempt to commit culpable homicide. 

Voluntarily causing hurt to extort property, or to constrain to an illegal act. 

Voluntarily causing grievous hurt to extort property, or to constrain to an illegal act. 

364A 

Kidnapping for ransom, etc. 

384 to 389 

Offences relating to extortion. 

392 to 402 

Offences relating to robbery and dacoity. 

411 

412 

413 

414 

417 

418 

419 

420 

421 

Dishonestly receiving stolen property. 

Dishonestly receiving property stolen in the commission of a dacoity. 

Habitually dealing in stolen property. 

Assisting in concealment of stolen property. 

Punishment for cheating. 

Cheating with knowledge that wrongful loss may ensue to person whose interest offender 
is bound to protect. 

Punishment for cheating by personation. 

Cheating and dishonestly inducing delivery of property. 

Dishonest or fraudulent removal or concealment of property to prevent distribution among 
creditors. 

1. Subs. by Act 2 of 2013, s.30, for Part A (w.e.f. 15-2-2013). 

41 

 
 
 
 
 
 
 
                                                           
Section 

422 

423 

424 

467 

471 

Description of offence 

Dishonestly or fraudulently preventing debt being available for creditors. 

Dishonest  or  fraudulent  execution  of  deed  of  transfer  containing  false  statement  of 
consideration. 

Dishonest or fraudulent removal or concealment of property. 

Forgery of valuable security, will, etc. 

Using as genuine a forged document or electronic record. 

472 and 473  Making or possessing counterfeit seal, etc., with intent to commit forgery. 

475 and 476  Counterfeiting device or mark. 

481 

482 

483 

484 

485 

486 

487 

488 

489A 

489B 

Using a false property mark. 

Punishment for using a false property mark. 

Counterfeiting a property mark used by another. 

Counterfeiting a mark used by a public servant. 

Making or possession of any instrument for counterfeiting a property mark. 

Selling goods marked with a counterfeit property mark. 

Making a false mark upon any receptacle containing goods. 

Punishment for making use of any such false mark. 

Counterfeiting currency notes or bank notes. 

Using as genuine, forged or counterfeit currency notes or bank notes. 

OFFENCES UNDER THE NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES ACT, 1985 

PARAGRAPH 2 

(61 OF 1985) 

Section 

Description of offence 

15 

16 

17 

18 

19 

20 

21 

22 

23 

Contravention in relation to poppy straw. 

Contravention in relation to coca plant and coca leaves. 

Contravention in relation to prepared opium. 

Contravention in relation to opium poppy and opium. 

Embezzlement of opium by cultivator. 

Contravention in relation to cannabis plant and cannabis. 

Contravention in relation to manufactured drugs and preparations. 

Contravention in relation to psychotropic substances. 

Illegal import into India, export from India or transhipment of narcotic drugs and psychotropic 
substances. 

42 

 
 
 
 
 
 
 
Section 

24 

25A 

27A 

29 

Section 

3 

4 

5 

Description of offence 

External dealings in narcotic drugs and psychotropic substances in contravention of section 12 
of the Narcotic Drugs and Psychotropic Substances Act, 1985. 

Contravention  of  orders  made  under  section  9A  of  the  Narcotic  Drugs  and  Psychotropic 
Substances Act, 1985. 

Financing illicit traffic and harbouring offenders. 

Abetment and criminal conspiracy. 

PARAGRAPH 3 

OFFENCES UNDER THE EXPLOSIVE SUBSTANCES ACT,1908 

(6 OF 1908) 

Description of offence 

Causing explosion likely to endanger life or property. 

Attempt to cause explosion, or for making or keeping explosives with intent to endanger life or 
property. 
Making or possessing explosives under suspicious circumstances. 

OFFENCES UNDER THE UNLAWFUL ACTIVITIES (PREVENTION) ACT, 1967 

PARAGRAPH 4 

(37 OF 1967) 

Section 

Description of offence 

10 read with section 3 

Penalty for being member of an unlawful association, etc. 

11 read with section 3  

Penalty for dealing with funds of an unlawful association. 

13 read with section 3 

Punishment for unlawful activities. 

16 read with section 15 

Punishment for terrorist act. 

16A  

17 

18 

18A 

18B 

19 

20 

21 

38 

39 

Punishment  for  making  demands  of  radioactive  substances,  nuclear  devices, 
etc. 

Punishment for raising funds for terrorist act. 

Punishment for conspiracy, etc. 

Punishment for organising of terrorist camps. 

Punishment for recruiting of any person or persons for terrorist act. 

Punishment for harbouring, etc. 

Punishment for being member of terrorist gang or organisation. 

Punishment for holding proceeds of terrorism. 

Offence relating to membership of a terrorist organisation. 

Offence relating to support given to a terrorist organisation. 

43 

 
 
 
 
 
 
 
Section 

40 

Section 

25 

Offence of raising fund for a terrorist organisation. 

Description of offence 

PARAGRAPH 5 

OFFENCES UNDER THE ARMS ACT, 1959 

(54 OF 1959) 

Description of offence 

To  manufacture,  sell,  transfer, convert, repair  or test or  prove  or expose  or  offer  for sale  or 
transfer or have in his possession for sale, transfer, conversion, repair, test or proof, any arms 
or ammunition in contravention of section 5 of the Arms Act, 1959. 

To  acquire,  have  in  possession  or  carry  any  prohibited  arms  or  prohibited  ammunition  in 
contravention of section 7 of the Arms Act, 1959. 

Contravention of section 24A of the Arms Act, 1959 relating to prohibition as to possession of 
notified arms in disturbed areas, etc. 

Contravention of section 24B of the Arms Act, 1959 relating to prohibition as to carrying of 
notified arms in or through public places in disturbed areas. 

Other offences specified in section 25. 

26 

To do any act in contravention of any provisions of section 3, 4, 10 or section 12 of the Arms 
Act, 1959 in such manner as specified in sub-section (1) of section 26 of the said Act. 

To do any act in contravention of any provisions of section 5, 6, 7 or section 11 of the Arms 
Act, 1959 in such manner as specified in sub-section (2) of section 26 of the said Act. 

Other offences specified in section 26. 

27 

28 

29 

30 

Use of arms or ammunitions in contravention of section 5 or use of any arms or ammunition in 
contravention of section 7 of the Arms Act, 1959. 

Use and possession of fire arms or imitation fire arms in certain cases. 

Knowingly purchasing arms from unlicensed person or for delivering arms, etc., to person not 
entitled to possess the same. 

Contravention of any condition of a licence or any provisions of the Arms Act, 1959 or any 
rule made thereunder. 

PARAGRAPH 6 

OFFENCES UNDER THE WILD LIFE (PROTECTION) ACT, 1972 

Section 

(53 OF 1972) 

Description of offence 

 51 read with section 9 

   Hunting of wild animals. 

51 read with section 17A 

51 read with section 39 

Contravention  of  provisions  of  section  17A  relating  to  prohibition  of 
picking, uprooting, etc., of specified plants. 
Contravention of provisions of section 39 relating to wild animals, etc., to 
be Government property. 

44 

 
 
 
 
 
 
 
 
 
 
 
 
Section 

51 read with section 44 

Description of offence 

Contravention  of  provisions  of  section  44  relating  to  dealings  in  trophy 
and animal articles without licence prohibited. 

51 read with section 48 

Contravention of provisions of section 48 relating to purchase of animal, 
etc., by licensee. 

51 read with section 49B 

Contravention  of  provisions  of  section  49B  relating  to  prohibition  of 
dealings in trophies, animals articles, etc., derived from scheduled animals. 

OFFENCES UNDER THE IMMORAL TRAFFIC (PREVENTION) ACT, 1956 

PARAGRAPH 7 

(104 OF 1956) 

Section 

Description of offence 

5 

6 

8 

9 

Procuring, inducing or taking person for the sake of prostitution. 

Detaining a person in premises where prostitution is carried on. 

Seducing or soliciting for purpose of prostitution. 

Seduction of a person in custody. 

1[PARAGRAPH 8 

OFFENCES UNDER THE PREVENTION OF CORRUPTION ACT, 1988 

(49 OF 1988) 

Description of offence 

Offence relating to public servant being bribed. 

Taking undue advantage to influence public servant by corrupt or illegal means or by exercise 
of personal influence. 

Offence relating to bribing a public servant. 

Offence relating to bribing a public servant by a commercial organisation. 

Person in charge of commercial organisation to be guilty of offence. 

Public  servant  obtaining  undue  advantage,  without  consideration  from  person  concerned  in 
proceeding or business transacted by such public servant. 

Punishment for abetment of offences. 

Criminal misconduct by a public servant. 

Punishment for habitual offender.] 

Section 

7. 

7A. 

8. 

9. 

10. 

11. 

12. 

13. 

14 

1. Subs. by Act 16 of 2018, s. 19, for Paragraph 8 (w.e.f. 26-7-2018). 

45 

 
 
 
 
                                                           
PARAGRAPH 9 

OFFENCES UNDER THE EXPLOSIVES ACT, 1884 

(4 OF 1884) 

Section 

9B 

9C 

Punishment for certain offences. 

Offences by companies. 

Description of offence 

PARAGRAPH 10 

OFFENCES UNDER THE ANTIQUITIES AND ARTS TREASURES ACT, 1972 

(52 OF 1972) 

Description of offence 

Contravention of export trade in antiquities and art treasures. 

Section 

25 read with 
section 3  

28 

Offences by companies. 

PARAGRAPH 11 

OFFENCES UNDER THE SECURITIES AND EXCHANGE BOARD OF 
INDIA ACT, 1992 

(15 OF 1992) 

Section 
12A read with 
section 24 

Prohibition  of  manipulative  and  deceptive  devices, 
substantial.  

insider 

trading  and 

Description of offence 

24 

Acquisition of securities or control. 

PARAGRAPH 12 

OFFENCES UNDER THE CUSTOMS ACT, 1962 

(52 OF 1962) 

Section 

135 

Evasion of duty or prohibitions. 

Description of offence 

46 

 
 
 
 
 
 
 
 
 
 
 
 
Section 

16 

18 

20 

OFFENCES UNDER THE BONDED LABOUR SYSTEM (ABOLITION) ACT, 1976 

PARAGRAPH 13 

(19 OF 1976) 

Description of offence 

Punishment for enforcement of bonded labour. 

Punishment for extracting bonded labour under the bonded labour system. 

Abetment to be an offence. 

PARAGRAPH 14 

OFFENCES UNDER THE CHILD LABOUR (PROHIBITION AND REGULATION) 
ACT, 1986 
(61 OF 1986) 

Section 
14 

Description of offence 
Punishment  for  employment  of  any  child  to  work  in  contravention  of  the  provisions  of 
section 3 

OFFENCES UNDER THE TRANSPLANTATION OF HUMAN ORGANS ACT, 1994 

PARAGRAPH 15 

Section 

18 

19 

20 

(42 OF 1994) 

Description of offence 

Punishment for removal of human organ without authority. 

Punishment for commercial dealings in human organs. 

Punishment for contravention of any other provision of this Act. 

PARAGRAPH 16 

OFFENCES UNDER THE JUVENILE JUSTICE (CARE AND PROTECTION OF CHILDREN) ACT, 2000 

(56 OF 2000) 

Section 

Description of offence 

23 

24 

25 

26 

Punishment for cruelty to juvenile or child. 

Employment of juvenile or child for begging. 

Penalty  for  giving  intoxicating  liquor  or  narcotic  drug  or  psychotropic  substance  to 
juvenile or child. 

Exploitation of juvenile or child employee. 

47 

 
 
 
 
 
 
 
 
 
 
Section 
24 

Section 
12 

Section 
14 
14B 
14C 

Section 
63 
63A 
63B 
68A 

Section 
103 
104 

105 

107 

120 

PARAGRAPH 17 
OFFENCES UNDER THE EMIGRATION ACT, 1983 
(31 OF 1983) 

   Offences and penalties. 

Description of offence 

PARAGRAPH 18 
OFFENCES UNDER THE PASSPORTS ACT, 1967 
(15 OF 1967) 

         Offences and penalties. 

PARAGRAPH 19 

Description of offence 

OFFENCES UNDER THE FOREIGNERS ACT, 1946 
(31 OF 1946) 

Description of offence 

Penalty for contravention of provisions of the Act, etc. 
Penalty for using forged passport. 
Penalty for abetment. 

PARAGRAPH 20 
OFFENCES UNDER THE COPYRIGHT ACT, 1957 
(14 OF 1957) 

Description of offence 

Offence of infringement of copyright or other rights conferred by this Act. 
Enhanced penalty on second and subsequent convictions. 
Knowing use of infringing copy of computer programme. 
Penalty for contravention of section 52A. 

PARAGRAPH 21 
OFFENCES UNDER THE TRADE MARKS ACT, 1999 
(47 OF 1999) 

Description of offence 

Penalty for applying false trademarks, trade descriptions, etc. 
Penalty  for  selling  goods  or  providing  services  to  which  false  trademark  or  false  trade 
description is applied. 

Enhanced penalty on second or subsequent conviction. 

Penalty for falsely representing a trademark as registered. 

Punishment of abetment in India of acts done out of India. 

48 

 
 
 
 
 
 
 
 
PARAGRAPH 22 

OFFENCES UNDER THE INFORMATION TECHNOLOGY ACT, 2000 

(21 OF 2000) 

Description of offence 

Penalty for breach of confidentiality and privacy. 

Act to apply for offence or contravention committed outside India. 

Section 

72 

75 

PARAGRAPH 23 

OFFENCES UNDER THE BIOLOGICAL DIVERSITY ACT, 2002 

(18 OF 2003) 

Section 

Description of offence 

55 read with section 6 

Penalties for contravention of section 6, etc. 

OFFENCES UNDER THE PROTECTION OF PLANT VARIETIES AND FARMERS RIGHTS ACT, 2001 

PARAGRAPH 24 

(53 OF 2001) 

Section 

Description of offence 

70 read with section 68 

Penalty for applying false denomination, etc. 

71 read with section 68 

Penalty for selling varieties to which false denomination is applied. 

72 read with section 68 

Penalty for falsely representing a variety as registered. 

73 read with section 68 

Penalty for subsequent offence. 

PARAGRAPH 25 

OFFENCES UNDER THE ENVIRONMENT PROTECTION ACT, 1986 

(29 OF 1986) 

Section 

15 read with section 7 

Description of offence 

Penalty for discharging environmental pollutants, etc., in excess of prescribed 
standards. 

15 read with section 8 

Penalty for handling hazardous substances without complying with procedural 
safeguards. 

49 

 
 
 
 
 
 
 
PARAGRAPH 26 
OFFENCES UNDER THE WATER (PREVENTION AND CONTROL OF POLLUTION) ACT, 1974 
(6 OF 1974) 

Description of offence 

Penalty for pollution of stream or well. 
Penalty for contravention of provisions of section 24. 
PARAGRAPH 27 
OFFENCES UNDER THE AIR (PREVENTION AND CONTROL OF POLLUTION) ACT, 1981 
(14 OF 1981) 

Description of offence 

Failure to comply with the provisions for operating industrial plant. 

PARAGRAPH 28 
OFFENCES UNDER THE SUPPRESSION OF UNLAWFUL, ACTS AGAINST SAFETY 
OF MARITIME NAVIGATION AND FIXED PLATFORMS ON 
CONTINENTAL SHELF ACT, 2002 
(69 OF 2002) 

Description of offence 
Offences  against  ship,  fixed  platform,  cargo  of  a  ship,  maritime  navigational 
facilities, etc.] 

1[PARAGRAPH 29 
OFFENCE UNDER THE COMPANIES ACT, 2013 
(18 OF 2013) 

Description of offence 
Punishment for fraud] 

2[PART B 

OFFENCE UNDER THE CUSTOMS ACT, 1962 

(52 OF 1962) 

Description of offence 

False declaration, false documents, etc.] 

3[PART C 

Section 
41 (2) 
43 

Section 
37 

Section 
3 

Section 
447 

Section 

132 

An offence which is the offence of cross border implications and is specified in,— 

(1) Part A; or 
4* 

* 

* 

* 

* 

(3) the offences against property under Chapter XVII of the Indian Penal Code (45 of 1860).] 
5[(4) The offence of wilful attempt to evade any tax, penalty or interest referred to in section 51 of the 

Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015).] 

1. Ins. by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018). 
2. Ins. by Act 20 of 2015, s. 151 (w.e.f. 14-5-2015). 
3. Ins. by Act 21 of 2009, s. 13 (w.e.f. 1-6-2009). 
4. Serial number (2) omitted by Act 2 of 2013, s. 30 (w.e.f. 15-2-2013). 
5. Ins. by Act 22 of 2015, s. 88 (w.e.f. 1-4-2016). 

50 

 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
