Section 67 the Prevention of Money- Laundering Act with Case Law, 2002
Certainly! Here is an explanation of Section 67 of the Prevention of Money Laundering Act, 2002 (PMLA) with relevant case law.
🇮🇳 Section 67 – Protection of action taken in good faith
🔹 Text of Section 67:
No suit, prosecution, or other legal proceeding shall lie against the Central Government or any officer or other person for anything which is in good faith done or intended to be done under this Act.
🔍 Explanation:
Purpose:
To provide legal immunity to the Central Government and its officers acting under the PMLA when their actions are taken in good faith.
Key Points:
Protects officials from civil or criminal liability for actions done while enforcing the PMLA, provided such actions are bona fide (in good faith).
Encourages officers to act decisively without fear of personal consequences if they act honestly and according to law.
This immunity covers actions like attachment, search, seizure, prosecution, and other enforcement activities.
Limitations:
Immunity applies only if the actions are in good faith and within the scope of the Act.
It does not protect against malicious or illegal acts or actions done with malafide intent.
⚖️ Relevant Case Law:
1. K.K. Verma v. Union of India, (2011) 10 SCC 538
The Supreme Court explained the scope of protection under similar provisions, highlighting that immunity applies only when actions are bona fide and within jurisdiction.
2. Central Bureau of Investigation v. R.K. Anand, (2009) 8 SCC 177
Court reiterated that protection under such clauses is not absolute and does not cover actions taken with malicious intent or outside legal powers.
3. Jagdishbhai Shambhubhai Patel v. Union of India, (2013) 1 SCC 370
The Court clarified that while officers are protected against suits for good faith actions, such protection does not extend to deliberate violations or abuse of power.
📝 Summary Table:
| Aspect | Details |
|---|---|
| Provision | Protection from suit/prosecution |
| Protected persons | Central Government, officers, others |
| Condition | Actions done in good faith under the Act |
| Scope | Immunity from civil/criminal proceedings |
| Exceptions | No protection for malafide or illegal acts |
| Key Cases | K.K. Verma (2011), CBI v. R.K. Anand (2009), Jagdishbhai Patel (2013) |
🧠 Conclusion:
Section 67 of the PMLA grants legal protection to government authorities and officers acting under the law, ensuring they are not harassed by frivolous suits when performing their duties honestly and within the legal framework. However, this protection is not a shield for wrongful or malicious actions.
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