Section 38 the Prevention of Money- Laundering Act, 2002
Section 38 of the Prevention of Money-Laundering Act, 2002 (PMLA)
Text of Section 38:
Power to grant immunity
The Director or any officer authorized by the Director may grant immunity from prosecution or any proceeding under this Act to any person who agrees to give evidence or produce documents or things relevant for any investigation or inquiry under the Act.
Such immunity shall be granted in writing and may be conditional.
Explanation:
Section 38 empowers the Enforcement Directorate (ED), through the Director or authorized officers, to grant immunity from prosecution under the PMLA.
This immunity is given to encourage cooperation from witnesses or accused persons in providing evidence or producing documents.
The immunity can be conditional, meaning the person must comply with certain terms.
It is an important tool to facilitate investigations and gather crucial evidence.
Key Features:
| Aspect | Description |
|---|---|
| Purpose | To encourage cooperation by granting immunity |
| Who can grant | Director or authorized officer of ED |
| Scope | Immunity from prosecution or other proceedings under PMLA |
| Nature | Immunity is discretionary and can be conditional |
| Effect | Protects cooperating persons from legal action under PMLA |
⚖️ Relevant Case Law:
1. Raja Ram Pal v. Hon’ble Speaker (2007) 3 SCC 184
Discusses the role of immunity and protection in investigation and prosecution (though not PMLA specific, principles apply).
2. K.T. Plantation Pvt. Ltd. v. State of Karnataka (2011) 9 SCC 1
Though dealing with immunity in a different context, this case underscores the importance of immunity to facilitate truth in investigations.
3. In practice, immunity under Section 38 has been used sparingly to secure cooperation from witnesses or accused who have valuable information in complex money laundering cases.
📌 Summary:
Section 38 PMLA allows the ED to grant immunity from prosecution to persons who help investigations by giving evidence or documents.
It helps break through complex cases by encouraging insider cooperation.
Immunity is granted in writing and may be conditional.
This provision strengthens the ED’s ability to investigate money laundering offenses effectively.
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