7. Adjudicating Authority.—The Central Government shall, by notification, appoint one or more
Adjudicating Authorities to exercise jurisdiction, powers and authority conferred by or under this Act.
8. Composition of Authority.—An Adjudicating Authority shall consist of a Chairperson and at
least two other Members.
1. Ins. by Act 43 of 2016, s. 5 (w.e.f. 1-11-2016).
2. Omitted by s. 6, ibid. (w.e.f. 1-11-2016).
3. Sub-section (3) renumbered as sub-section (2) thereof by s. 6, ibid. (w.e.f. 1-11-2016).
4. Ins. by s. 6, ibid (w.e.f. 1-11-2016).
5. Omitted by s. 6, ibid. (w.e.f. 1-11-2016).
6. Omitted by s. 7, ibid. (w.e.f. 1-11-2016).
7. Subs. by s. 8, ibid., for sections 5 and 6 (w.e.f. 1-11-2016).
8. Ins. by s. 9, ibid. (w.e.f. 1-11-2016).
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9. Qualifications for appointment of Chairperson and Members.—(1) A person shall not be
qualified for appointment as the Chairperson or a Member of the Adjudicating Authority unless he,—
(a) has been a member of the Indian Revenue Service and has held the post of Commissioner of
Income-tax or equivalent post in that Service; or
(b) has been a member of the Indian Legal Service and has held the post of Joint Secretary or
equivalent post in that Service.
(2) The Chairperson and other Members of the Adjudicating Authority shall be appointed by the
Central Government in such manner as may be prescribed.
(3) The Central Government shall appoint the seniormost Member to be the Chairperson of the
Adjudicating Authority.
10. Constitution of Benches of Adjudicating Authority.—(1) 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 two
Members, as the Chairperson may deem fit;
(c) the Benches of the Adjudicating Authority shall ordinarily sit in the National Capital Territory
of 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.
(2) Notwithstanding anything contained in sub-section (1), the Chairperson may transfer a Member
from one Bench to another Bench.
11. Power of Adjudicating Authority to regulate its own procedure.—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 Authority shall have powers to regulate its own procedure.
12. Term of office of Chairperson and Members of Adjudicating Authority.—The Chairperson
and Members of the Adjudicating Authority shall hold office for a term not exceeding five years from the
date on which they enter upon their office, or until they attain the age of sixty-two years, whichever is
earlier and shall not be eligible for reappointment.
13. Terms and conditions of services of Chairperson and Members of Adjudicating
Authority.—(1) The salary and allowances payable to, and the other terms and conditions of service of
the Chairperson and other Members of the Adjudicating Authority shall be such as may be prescribed.
(2) Any vacancy caused to the office of the Chairperson or any other Member shall be filled up within
a period of three months from the date on which such vacancy occurs.
14. Removal of Chairperson and Members of Adjudicating Authority.—(1) The Central
Government may, by order, remove from office, the Chairperson or other Members of the Adjudicating
Authority, if the Chairperson or such other Member, as the case may be,—
(a) has been adjudged as an insolvent; or
(b) has been convicted of an offence, involving moral turpitude; or
(c) has become physically or mentally incapable of acting as a Member; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions; or
(e) has so abused his position as to render his continuance in office is prejudicial to the public
interest.
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(2) No Chairperson or Member shall be removed from his office under clause (d) or clause (e) of
sub-section (1) unless he has been given a reasonable opportunity of being heard in the matter.
15. Member to act as Chairperson in certain circumstances.—(1) In the event of the occurrence
of any vacancy in the office of the Chairperson by reason of his death, resignation or otherwise, the
seniormost 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.
(2) When the Chairperson is unable to discharge his functions owing to absence, illness or any other
cause, the seniormost Member shall discharge the functions of the Chairperson until the date on which the
Chairperson resumes his duties.
16. Vacancies, etc., not to invalidate proceedings of Adjudicating Authority.—No act or
proceeding of the Adjudicating Authority shall be invalid merely by reason of—
(a) any vacancy in, or any defect in the constitution of the Authority; or
(b) any defect in the appointment of a person acting as a Member of the Authority; or
(c) any irregularity in the procedure of the Authority not affecting the merits of the case.
17. Officers and employees of Adjudicating Authority.—(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.
18. Authorities and jurisdiction.—(1) The following shall be the authorities for the purposes of this
Act, namely:—
(a) the Initiating Officer;
(b) the Approving Authority;
(c) the Administrator; and
(d) the Adjudicating Authority.
(2) 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 it under this Act or in accordance with such rules as may
be prescribed.
19. Powers of authorities.—(1) The authorities 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 official of a banking company or a
public financial institution or any other intermediary or reporting entity, and examining him on oath;
(c) compelling the production of books of account and other documents;
(d) issuing commissions;
(e) receiving evidence on affidavits; and
(f) any other matter which may be prescribed.
(2) All the persons summoned under sub-section (1) shall be bound to attend in person or through
authorised agents, as any authority under this Act 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.
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(3) Every proceeding under sub-section (1) or sub-section (2) 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) For the purposes of this Act, any authority under this Act may requisition the service of any police
officer or of any officer of the Central Government or State Government or of both to assist him for all or
any of the purposes specified in sub-section (1), and it shall be the duty of every such officer to comply
with the requisition or direction.
(5) For the purposes of this section, “reporting entity” means any intermediary or any authority or of
the Central or the State Government or any other person as may be notified in this behalf.
Explanation.—For the purposes of sub-section (5), “intermediary” shall have the same meaning as
assigned to it in clause (n) of sub-section (1) of section 2 of the Prevention of Money-Laundering
Act, 2002 (15 of 2003).
20. Certain officers to assist in inquiry, etc.—The following officers shall assist the authorities in
the enforcement of this Act, namely:—
(a) income-tax authorities appointed under sub-section (1) of section 117 of the Income-tax
Act, 1961 (43 of 1961);
(b) officers of the Customs and Central Excise Departments;
(c) officers appointed under sub-section (1) of section 5 of the Narcotic Drugs and Psychotropic
Substances Act, 1985 (61 of 1985);
(d) officers of the stock exchange 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) 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);
(i) officers of any other body corporate constituted or established under a Central or a State Act;
and
(j) such other officers of the Central Government, State Government, local authorities or banking
companies as the Central Government may, by notification, specify, in this behalf.
21. Power to call for information.—(1) The Initiating Officer or the Approving Authority or the
Adjudicating Authority shall have power to require any officer of the Central Government or State
Government or a local body or any person or officer who is responsible for registering and maintaining
books of account or other documents containing a record of any transaction relating to any property or
any other person to furnish any information in relation to any person, point or matter as in his opinion
shall be useful for or relevant for the purposes of this Act.
(2) Without prejudice to sub-section (1), every officer or person referred to in sub-section (1) shall
furnish such information to any authority under this Act in such form and manner as may be prescribed.
22. Power of authority to impound documents.—(1) Where any books of account or other
documents are produced before the authority in any proceedings under this Act and the authority in this
behalf has reason to believe that any of the books of account or other documents are required to be
impounded and retained for any inquiry under this Act, it may impound and retain the books of account or
other documents for a period not exceeding three months from the date of order of attachment made by
the Adjudicating Authority under sub-section (3) of section 26:
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Provided that the period for retention of the books of account or other documents may be extended
beyond a period exceeding three months from the date of order of attachment made by the Adjudicating
Authority under sub-section (3) of section 26 where the authority records in writing the reasons for
extending the same.
(2) Where the authority impounding and retaining the books of account or other documents, under
sub-section (1) is the Initiating Officer, he shall obtain approval of the Approving Authority within a
period of fifteen days from the date of initial impounding and seek further approval of the Approving
Authority for extending the period of initial retention, before the expiry of the period of initial retention, if
so required.
(3) The period of retention of the books of account or other documents under sub-section (1) shall in
no case exceed a period of thirty days from the date of conclusion of all the proceedings under this Act.
(4) The person, from whom the books of account or other documents were impounded under
sub-section (1), shall be entitled to obtain copies thereof.
(5) On the expiry of the period specified under sub-section (1), the books of account or other
documents shall be returned to the person from whom such books of account or other documents were
impounded unless the Approving Authority or the Adjudicating Authority permits their release to any
other person.
23. Power of authority to conduct inquiry, etc.—The Initiating Officer, after obtaining prior
approval of the Approving Authority, shall have power to conduct or cause to be conducted any inquiry or
investigation in respect of any person, place, property, assets, documents, books of account or other
documents, in respect of any other relevant matters under this Act.