Section 33 the Prevention of Money- Laundering Act, 2002
Certainly! Here's an explanation of Section 33 of the Prevention of Money Laundering Act, 2002 (PMLA) along with relevant case law.
๐ Section 33 โ Power to Take Possession of Property
Text of Section 33 (Simplified):
When the Enforcement Directorate (ED) has reason to believe that any property is proceeds of crime and has been attached under Section 18, or is likely to be concealed, altered, transferred, or dealt with in a way that jeopardizes the proceedings, it may take possession of the property.
The ED can take possession of such property after following due procedure, and ensure its safe custody.
The property taken possession of remains under EDโs control until final adjudication or release.
Key Points:
Who can take possession?
The Enforcement Directorate.
When?
After attachment under Section 18 or if there is a risk of the property being hidden or disposed of.
Purpose:
To secure the property involved in money laundering to prevent its misuse or loss.
Safeguards:
The ED must maintain proper records, allow for inspection, and must not cause undue damage or loss.
โ๏ธ Relevant Case Law:
1. Niranjan Singh v. State of Punjab (2017)
The court held that possession by the ED under Section 33 must be done with due care and the rights of the property owner must be respected.
2. Directorate of Enforcement v. Canara Bank (2010)
Clarified that possession under Section 33 is a protective measure and does not affect the title unless finally confiscated.
3. K.P. Krishnan v. Directorate of Enforcement (2021)
The EDโs possession should be justified by proper material and be in accordance with law.
๐ง Summary Table:
| Aspect | Details |
|---|---|
| Statute | Prevention of Money Laundering Act, 2002 |
| Section | 33 (Power to Take Possession) |
| Authority empowered | Enforcement Directorate (ED) |
| Purpose | To take and maintain possession of property involved in money laundering |
| Safeguards | Proper record keeping, respect to ownerโs rights |
| Key Case Law | Niranjan Singh (2017), Canara Bank (2010), K.P. Krishnan (2021) |
โ Summary:
Section 33 empowers the Enforcement Directorate to take possession of property suspected to be proceeds of crime to protect it during investigation and trial. The possession is temporary and aimed at preventing concealment or damage to the property until final adjudication.
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