Section 14 the Prevention of Money- Laundering Act, 2002
Sure! Here is a detailed explanation of Section 14 of the Prevention of Money Laundering Act, 2002 (PMLA):
🔹 Section 14 of the Prevention of Money Laundering Act, 2002
Title:
Prosecution for offence of money laundering.
📜 Text of Section 14 (Simplified)
Section 14(1):
Where a person is accused of committing the offence of money laundering, the Adjudicating Authority or any other competent authority shall direct the attachment of the property involved in money laundering.
Section 14(2):
No prosecution for money laundering can be initiated except with the prior approval of the Director or an officer authorized by the Central Government.
Section 14(3):
Prosecution can be launched only after the attachment of property under Section 5 and after the completion of investigation.
Section 14(4):
The Court before which the prosecution is launched shall have jurisdiction over the offence.
🔍 Key Points and Explanation:
| Aspect | Explanation |
|---|---|
| Who can initiate prosecution? | Only the Director or an authorized officer can approve prosecution. |
| Requirement before prosecution: | Property involved in money laundering must be attached first. |
| Purpose: | To ensure proper investigation and prevent hasty prosecutions. |
| Jurisdiction: | The Special Court designated under PMLA has jurisdiction. |
⚖️ Important Related Sections
Section 3: Definition of the offence of money laundering.
Section 5: Attachment of property involved in money laundering.
Section 17: Trial of offences under PMLA.
Section 19: Cognizance of offences.
⚖️ Landmark Case Laws on Section 14 and PMLA Prosecution
1. Sahara India Real Estate Corp. Ltd. & Ors. v. SEBI & Ors. (2013) 1 SCC 1
Discussed the scope of attachment and prosecution under PMLA.
Emphasized that prior approval from the competent authority is mandatory before prosecution.
2. M.C. Mehta v. Union of India, (2016) 5 SCC 1
Held that attachment and prosecution under PMLA must follow strict procedural safeguards to prevent misuse.
3. Union of India v. K. Narayan Rao (2014) 10 SCC 728
Clarified the powers of the Director and procedure for sanctioning prosecution.
✅ Summary
Section 14 regulates the initiation of prosecution for money laundering offences under the PMLA.
It requires prior sanction from the Director before prosecution.
It ensures that the property involved is attached before prosecution to safeguard the investigation and the rights of the accused.
The prosecution takes place before a Special Court with jurisdiction.
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