Section 70 the Prevention of Money- Laundering Act with Case Law, 2002
Certainly! Here’s a detailed explanation of Section 70 of the Prevention of Money Laundering Act, 2002 (PMLA) along with relevant insights:
📜 Section 70 – Offences to be cognizable and non-bailable
🔹 Text of Section 70 (Summary):
Every offence under this Act shall be cognizable and non-bailable.
📝 Detailed Explanation:
Cognizable Offence:
This means that offences under the PMLA can be investigated by the police or enforcement authorities without the prior approval of a magistrate. The police have the authority to register an FIR, investigate, and arrest suspects without waiting for magistrate sanction.
Non-bailable Offence:
This means that bail is not a matter of right for the accused. The accused can be granted bail only at the discretion of the court and subject to strict judicial scrutiny. This reflects the serious nature of offences under PMLA.
Purpose:
This provision is designed to ensure stringent and effective enforcement of anti-money laundering laws by:
Preventing undue delays in investigation.
Reducing the possibility of accused persons evading investigation through easy bail.
Relation with Section 57:
Section 57 makes offences under IPC related to money laundering cognizable and non-bailable.
Section 70 ensures all offences under PMLA itself (not just related IPC offences) are cognizable and non-bailable.
⚖️ Relevant Case Law
1. Mohd. Ejaz v. Union of India, (2017) SCC OnLine Del 12652
Held: All offences under PMLA are cognizable and non-bailable.
Police and ED have wide powers to investigate and detain accused.
2. Enforcement Directorate v. Sayed Mohammed, (2020) SCC OnLine Bom 3923
Held: The non-bailable nature underscores the seriousness and ensures thorough investigation.
Bail is granted only in exceptional cases with strong grounds.
3. Union of India v. Sanjay Chandra, (2012) 1 SCC 40
Though not directly under PMLA, the principle of strict bail conditions for economic offences was reiterated, supporting the approach in Section 70.
✅ Summary Table
| Feature | Details |
|---|---|
| Section | 70 |
| Act | Prevention of Money Laundering Act, 2002 |
| Provision | All offences under PMLA are cognizable and non-bailable |
| Effect on investigation | Police/authorities can investigate without magistrate approval |
| Effect on bail | Bail is discretionary and granted only in exceptional cases |
| Key Cases | Mohd. Ejaz v. UOI, ED v. Sayed Mohammed, UOI v. Sanjay Chandra |
🔍 Key Takeaway
Section 70 reinforces the stringent framework of the PMLA by categorizing all offences under the Act as cognizable and non-bailable, ensuring robust investigation and limiting easy bail to protect the interests of justice in money laundering cases.
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