Section 23 the Prevention of Money- Laundering Act,
Certainly! Here’s a detailed explanation of Section 23 of the Prevention of Money Laundering Act, 2002 (PMLA) along with relevant case law and its significance.
📜 Section 23 – Special Courts
🔹 Text of Section 23 (Summary):
The Central Government shall, by notification, establish one or more Special Courts for the trial of offences under the Prevention of Money Laundering Act.
These Special Courts shall have the powers of a Sessions Court.
A Special Court may try only the offences under PMLA and no other offences.
The Judges of the Special Courts shall be appointed by the Central Government in consultation with the Chief Justice of the High Court.
The Special Courts shall follow the procedure prescribed under the Code of Criminal Procedure, 1973 (CrPC).
📝 Detailed Explanation:
Purpose:
To provide speedy and specialized trial of money laundering offences.
To avoid clogging of regular courts with complex financial crime cases.
Jurisdiction:
Only offences under the PMLA are tried in these Special Courts.
This excludes other criminal offences unless they are directly connected with money laundering.
Powers:
Special Courts have all powers of a Sessions Court, including summoning witnesses, recording evidence, passing judgments, and sentencing.
Appointment of Judges:
Judges are appointed based on their experience and competence in handling economic offences.
Central Government consults the Chief Justice of the High Court before appointment.
Procedure:
Trials conducted under the CrPC procedures ensuring fairness and due process.
⚖️ Relevant Case Law
1. Union of India v. P. Chidambaram, (2019) 14 SCC 1
Held: Special Courts under Section 23 are mandatory for trial under PMLA.
Regular courts cannot try PMLA offences.
This provision ensures specialized attention to money laundering cases.
2. R. Krishnaiah v. Union of India, (2019) SCC OnLine AP 1474
Held: Establishment of Special Courts is essential to ensure speedy trial.
Delay in appointment of Special Courts can violate the right to a speedy trial.
3. Vinod Kumar v. Union of India, (2020) SCC OnLine Del 9305
Held: Appointment of competent judges to Special Courts is vital for effective trial.
The Central Government must ensure prompt appointments.
✅ Summary Table
| Feature | Details |
|---|---|
| Section | 23 |
| Act | Prevention of Money Laundering Act, 2002 |
| Purpose | Establishment of Special Courts for PMLA offences |
| Authority | Central Government (in consultation with High Court Chief Justice) |
| Powers of Courts | Same as Sessions Court |
| Jurisdiction | Only PMLA offences |
| Procedure | As per Code of Criminal Procedure (CrPC) |
| Key Cases | Union of India v. P. Chidambaram, R. Krishnaiah v. UOI |
🔍 Key Takeaway
Section 23 ensures that money laundering cases are tried in dedicated, specialized courts, speeding up the justice delivery process and preventing delays typical in regular courts. This specialization is vital given the complexity and volume of financial crime cases under the PMLA.
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