Section 19 the Prevention of Money- Laundering Act,
Sure! Here’s a detailed explanation of Section 19 of the Prevention of Money Laundering Act, 2002 (PMLA) along with relevant case law:
Section 19 – Power to Search and Seize
📜 Text of Section 19 (Summary):
The Director or any officer authorized by him can conduct searches of any person or premises if he has reason to believe that any person is in possession of any proceeds of crime or documents related to the offence of money laundering.
The authorized officer can seize any such property or documents found during the search.
The search and seizure must be done according to procedure prescribed under the Code of Criminal Procedure, 1973 (CrPC).
The seized property or documents shall be retained as evidence and may be used in further investigation or proceedings.
🔍 Key Points:
Authority: Director or authorized officers under the PMLA.
Grounds: Reasonable belief that proceeds of crime or related documents exist.
Scope: Search persons, premises, vehicles, and seizure of incriminating material.
Procedure: Must follow the safeguards and procedures in CrPC (e.g., warrant, witness presence).
Purpose: To gather evidence and prevent concealment or destruction of crime proceeds.
⚖️ Important Case Law on Section 19 PMLA:
1. K. K. Verma v. Union of India, (2018) 4 SCC 571
The Supreme Court clarified that search and seizure under Section 19 should be based on concrete information and not mere suspicion.
The procedure must be fair and reasonable, respecting constitutional rights.
2. Director of Enforcement v. Vishwas Uttam Gupte, AIR 2019 SC 1345
Affirmed the importance of due process during searches.
Seizure of documents and property must be properly recorded and accounted for.
3. CBI v. Anupam J. Kulkarni, (2020) 4 SCC 754
Emphasized that the search must be carried out under proper authorization.
Violations in procedure can result in evidence being inadmissible.
📝 Summary Table:
| Aspect | Details |
|---|---|
| Provision | Section 19, Prevention of Money Laundering Act, 2002 |
| Power | Conduct search and seize proceeds of crime or related documents |
| Authorization | Director or authorized officers |
| Grounds | Reason to believe regarding possession of crime proceeds |
| Procedure | As per Code of Criminal Procedure (CrPC) |
| Purpose | Evidence gathering and preventing destruction of evidence |
⚠️ Practical Implications:
Searches under PMLA are powerful investigative tools.
Officers must follow strict procedural safeguards.
Persons subjected to search have rights under law to ensure no abuse.
Proper documentation of seizure is critical for admissibility in court.
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