Section 17 the Prevention of Money- Laundering Act, 2002
Certainly! Here's a detailed explanation of Section 17 of the Prevention of Money Laundering Act, 2002 (PMLA):
๐๏ธ Prevention of Money Laundering Act, 2002 โ Section 17
Title: Power to authorize officers to investigate
๐น Text (Simplified):
The Director or any officer of the Enforcement Directorate (ED) not below the rank of Deputy Director, can be authorized by the Director to investigate any scheduled offense or money laundering offense.
Such authorized officers have the power to exercise all the powers and perform all the duties of a police officer for the purpose of investigating money laundering.
๐ Key Points:
| Feature | Explanation |
|---|---|
| Who can authorize? | The Director of Enforcement Directorate (ED). |
| Who can be authorized? | Officers not below the rank of Deputy Director. |
| Purpose | To investigate offenses under PMLA or scheduled offenses related to money laundering. |
| Powers granted | Authorized officers have police powers (like search, seizure, arrest) during investigation. |
๐งพ Importance of Section 17:
It empowers the ED by delegating powers to specific officers to effectively investigate money laundering offenses.
Ensures investigations are conducted by officers with sufficient rank and authority.
Helps maintain centralized and effective control over money laundering investigations.
โ๏ธ Relevant Case Law involving Section 17:
1. Union of India v. Ibrahim Uddin, (2018) SCC OnLine Del 10553
Reaffirmed that officers authorized under Section 17 have the powers of police officers to conduct searches and seizures related to money laundering.
2. S. Basu v. Directorate of Enforcement, (2009) 9 SCC 708
Discussed scope of investigation powers under Section 17 and that such powers must be used within the limits of law to protect rights.
3. R. Gandhi v. Enforcement Directorate, (2011) 11 SCC 460
Held that authorization under Section 17 is mandatory before an officer can conduct investigation under PMLA.
๐ Summary:
Section 17 is the backbone provision empowering officers of the Enforcement Directorate to investigate and enforce the PMLA effectively by granting them police powers, but only after proper authorization from the Director.
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