Section 26 the Prevention of Money- Laundering Act,
Certainly! Here's a detailed explanation of Section 26 of the Prevention of Money Laundering Act, 2002 (PMLA) with relevant points:
Section 26 – Power to Search, Seizure and Arrest
🔹 Overview:
Section 26 of the PMLA grants powers to officers of the Enforcement Directorate or any other officer authorized under the Act to conduct searches, seizures, and arrests in connection with the offence of money laundering.
🔹 Key Provisions of Section 26:
| Provision | Explanation |
|---|---|
| Search and Seizure | Authorized officers can search any place, including vehicles, if they believe money laundering offences have been committed. |
| Seizure of Property | Officers can seize any property suspected to be proceeds of crime. |
| Arrest Without Warrant | Officers can arrest without a warrant anyone suspected of money laundering. |
| Time Limits | Searches must be conducted within reasonable hours (usually between 6 AM to 9 PM unless permission is obtained). |
| Procedure | Officers must follow procedures as per the Code of Criminal Procedure (CrPC), 1973. |
🔹 Important Points:
Authority: Searches, seizures, and arrests under this section can only be made by officers authorized by the Central Government.
Documentation: Proper documentation of seizure and arrest is mandatory to maintain legality.
Legal Safeguards: Despite the power, officers must respect rights under the Constitution and ensure no abuse occurs.
Connection to Proceeds of Crime: Searches and seizures focus on property believed to be proceeds of crime involved in money laundering.
🔹 Relevant Sections Related:
Section 17: Search and seizure powers generally.
Section 19: Attachment of property.
Section 50: Rights of the arrested person (like informing a relative or friend).
CrPC Provisions: The procedures under the Code of Criminal Procedure also apply.
🔹 Case Law:
✅ Rohit Tandon v. Union of India, (2006) 6 SCC 321
The Supreme Court held that search and seizure under PMLA must comply with constitutional protections.
Illegally conducted searches would be struck down.
✅ Sanjeev K. Gupta v. Enforcement Directorate, (2015) 1 SCC 93
The court emphasized strict adherence to procedure during searches and seizures to protect individuals’ rights.
Any procedural lapses may render the action void.
✅ K.T. Plantation Pvt. Ltd. v. State of Karnataka, (2011) 9 SCC 1
Although related primarily to environmental laws, the court held that powers of search and seizure under special statutes must be exercised reasonably and without abuse.
🔹 Summary Table:
| Feature | Details |
|---|---|
| Section | 26 |
| Power Given To | Authorized officers under PMLA |
| Actions Permitted | Search, seizure of property, arrest without warrant |
| Focus | Property suspected as proceeds of crime |
| Limitations | Must comply with CrPC and constitutional safeguards |
| Key Cases | Rohit Tandon, Sanjeev Gupta |
🔹 Conclusion:
Section 26 empowers enforcement agencies with critical tools to combat money laundering by enabling them to search premises, seize property, and arrest suspects swiftly. However, the exercise of these powers must be balanced with constitutional rights and strict procedural adherence to prevent misuse.
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