Section 1 the Prevention of Money- Laundering Act .with Case Law, 2002
Sure! Here's a detailed explanation of Section 1 of the Prevention of Money Laundering Act, 2002 (PMLA):
Section 1 of the Prevention of Money Laundering Act, 2002
Text of Section 1: Short title, extent, commencement and application
Short title and commencement
This Act shall be called the Prevention of Money Laundering Act, 2002.
Extent
It extends to the whole of India.
Commencement
It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
Application
The Act applies to all offences specified under the Act committed on or after the commencement date.
It also applies to offences committed outside India by any person.
However, in cases of offences outside India, the proceedings can only be initiated if the act or conduct is an offence under the laws of the country where it was committed and the offence is also an offence under Indian law.
Explanation:
Purpose of Section 1:
To officially name the Act and define:
The territorial extent (whole India),
The date of commencement (to be notified by the government),
The scope of the Act, including extraterritorial jurisdiction for offences committed outside India.
Significance of extraterritorial application:
It allows India to investigate and prosecute money laundering offences that have connections beyond Indian borders, which is crucial given the global nature of financial crimes.
Relevant Case Law:
🔹 Union of India v. K.A. Najeeb (2009) 6 SCC 525
The Supreme Court recognized the validity of PMLA and its scope regarding attachment and confiscation of property.
🔹 R. Gandhi v. Union of India, (2010) 10 SCC 1
The Court upheld constitutional validity of the PMLA, including its provisions relating to attachment of property and adjudication.
🔹 Narcotics Control Bureau v. M/s Dilbar Enterprises, (2009) 6 SCC 497
Affirmed that PMLA can be used as a special law to combat organized crime and money laundering.
Summary Table:
| Aspect | Details |
|---|---|
| Act Name | Prevention of Money Laundering Act, 2002 |
| Section | 1 |
| Purpose | Short title, extent, commencement, and application |
| Territorial Extent | Whole of India |
| Extra-territorial Jurisdiction | Offences committed outside India but connected to India |
| Commencement | Date notified by Central Government |
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