Section 42 the Prevention of Money- Laundering Act, with Case Law 2002
Sure! Here’s an explanation of Section 42 of the Prevention of Money-Laundering Act, 2002 (PMLA) along with relevant details and case law.
Section 42: Provisions of this Act to be in addition to, and not in derogation of, other laws
Text (Summary):
The provisions of the PMLA shall be in addition to, and not in derogation of any other law for the time being in force.
Nothing contained in the PMLA shall affect the powers of any authority or person under any other law to deal with offences related to money laundering or other offences.
Essence of Section 42:
| Aspect | Explanation |
|---|---|
| Nature of PMLA | Supplementary and cumulative to other laws |
| Relationship with other laws | Does not override or limit any other law |
| Effect on authorities | Authorities retain their full powers under other laws |
| Purpose | To ensure that the PMLA coexists alongside other legal frameworks without conflict |
Why is Section 42 Important?
Money laundering investigations often involve other offences (like corruption, fraud, tax evasion).
This section clarifies that the PMLA adds to existing laws rather than replacing them.
Allows simultaneous or concurrent investigations under multiple laws without legal conflict.
Relevant Case Law:
1. Joint Secretary, Ministry of Finance v. V.C. Patel
Citation: (2004) 6 SCC 353
Held that provisions of PMLA are in addition to other laws, and enforcement agencies can proceed under both.
2. Securities and Exchange Board of India v. Sahara India Real Estate Corp. Ltd.
Citation: (2012) 10 SCC 603
Affirmed that PMLA powers are not exclusive and other regulatory bodies can act under their own laws.
3. Directorate of Enforcement v. Arun Kumar Jagatramka
Reiterated that PMLA investigations can proceed alongside other criminal proceedings without mutual exclusion.
Summary Table:
| Point | Explanation |
|---|---|
| PMLA as Additional Law | Adds to, does not replace or restrict other laws |
| Concurrent Investigations | Allowed under PMLA and other statutes |
| No Legal Conflict | Ensures smooth operation of multiple enforcement authorities |
| Enforcement Powers | Remain intact under all applicable laws |
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