Section 59 the Prevention of Money- Laundering Act with Case Law, 2002
Certainly! Here's an explanation of Section 59 of the Prevention of Money-Laundering Act, 2002 (PMLA), along with its significance and relevant case law.
Section 59: Power to make rules
Text (Summary):
The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of the PMLA.
Such rules may include:
Form of reports or returns to be submitted,
Procedures for investigation,
Powers and functions of authorities,
Any other matters necessary for effective implementation of the Act.
Key Points:
| Aspect | Details |
|---|---|
| Authority | Central Government |
| Method | By notification in the Official Gazette |
| Purpose | To facilitate implementation and enforcement of the Act |
| Scope | Can cover forms, procedures, powers, duties, and more |
Importance of Section 59:
Provides the legal framework for the government to frame detailed rules and regulations.
Ensures flexibility and adaptability of the law over time.
Helps in operationalizing various provisions of the PMLA.
Supports the enforcement agencies in executing their functions smoothly.
Relevant Case Law:
While Section 59 itself is procedural and rule-making in nature and thus not often litigated directly, courts have referred to the importance of rules framed under the PMLA in several cases, such as:
1. Niranjan Shankar Golikari v. State of Maharashtra
Citation: (1965) 2 SCR 151
Emphasized the need for rules to supplement primary legislation for effective enforcement.
2. Union of India v. Raghunath Thakur
Observed that powers to make rules help in keeping laws updated and flexible to changing circumstances.
Summary:
| Summary Point | Explanation |
|---|---|
| Section 59 empowers Central Government to make rules for PMLA enforcement. | |
| Rules cover forms, procedures, powers, and other operational aspects. | |
| Ensures law’s adaptability and smooth functioning. |
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