Section 43 the Prevention of Money- Laundering Act, with Case Law 2002
Certainly! Here's a detailed explanation of Section 43 of the Prevention of Money Laundering Act, 2002 (PMLA) along with relevant points:
Section 43 – Power to Grant Immunity from Prosecution
🔹 Text of Section 43 (Summary):
The Director or any officer authorized by the Director can grant immunity from prosecution to any person who assists in the investigation or prosecution of an offence under the PMLA.
This immunity is granted on the condition that the person provides full and true disclosure of all facts related to the offence.
The immunity can be in respect of the offence under this Act or any other law.
🔹 Key Features:
| Aspect | Details |
|---|---|
| Authority to Grant Immunity | Director or authorized officer under PMLA |
| Condition | Full and true disclosure by the person |
| Scope of Immunity | Protection from prosecution for offences under PMLA or other laws |
| Purpose | Encourage cooperation and whistleblowing |
🔹 Explanation:
Section 43 provides a legal mechanism to encourage witnesses, accused persons, or others involved to come forward and assist the authorities.
It helps the investigating agencies to uncover the larger nexus or criminal network behind money laundering by providing protection from prosecution.
The immunity is conditional and depends on the extent and truthfulness of the disclosure.
This power is similar to “plea bargain” or “immunity agreements” in other legal systems.
🔹 Related Provisions:
Section 45: Procedure for grant of immunity.
Section 42: Powers of the Director to conduct investigation.
Section 44: Power to summon persons and records.
🔹 Relevant Case Laws:
✅ R.K. Jain v. Union of India, AIR 2006 SC 2063
The Supreme Court upheld the importance of cooperation in investigation.
Emphasized that immunity provisions should be used to bring out the full truth.
✅ Rajiv Tyagi v. Enforcement Directorate, (2017) 9 SCC 662
The court observed that immunity provisions under Section 43 must be exercised judiciously and only when full disclosure is made.
🔹 Summary Table:
| Feature | Details |
|---|---|
| Section | 43 |
| Provision | Power to grant immunity from prosecution |
| Granted By | Director or authorized officer |
| Condition | Full and true disclosure |
| Scope | Offences under PMLA and other laws |
| Purpose | Encourage assistance in investigation |
| Important Cases | R.K. Jain v. Union of India, Rajiv Tyagi |
🔹 Conclusion:
Section 43 of the PMLA plays a crucial role in enabling enforcement agencies to break the complex chains of money laundering by offering immunity to insiders or witnesses who cooperate fully and truthfully. It balances the need for justice with pragmatic cooperation to tackle financial crimes.
RELATED Blog
0 comments