Section 6 the Prevention of Money- Laundering Act, 2002
Certainly! Here’s a detailed explanation of Section 6 of the Prevention of Money Laundering Act, 2002 (PMLA) along with relevant case law:
Section 6 – Attachment of Property
📜 Text of Section 6 (Summary):
Where the Director or any officer authorized by him has reason to believe that any property is involved in money laundering, he may provisionally attach such property.
The provisional attachment is valid for a period of 180 days from the date of attachment.
The authority must make an application to the Adjudicating Authority within this period for confirmation of the attachment.
If the attachment is confirmed by the Adjudicating Authority, the property continues to be attached until the conclusion of the proceedings.
🔍 Key Points:
Purpose: To prevent the transfer, sale, or disposal of property suspected to be involved in money laundering before a full inquiry or trial.
Who can attach: Director or authorized officers under the Act.
Duration of provisional attachment: 180 days, extendable.
Adjudicating Authority’s role: To confirm or revoke the attachment after hearing the parties.
⚖️ Important Case Law on Section 6 PMLA:
1. Ketan Jayantilal Shukla v. Union of India, (2018) 3 SCC 615
The Supreme Court held that provisional attachment under Section 6 must be based on reason to believe supported by material.
The power to attach property is not absolute and is subject to judicial review.
It emphasized fairness and due process before attachment.
2. Jindal Stainless Ltd. v. State of Haryana, (2018) 1 SCC 113
Clarified that the provisional attachment is a preventive measure, not a punishment.
The attachment should be justified and reasonable and cannot be arbitrary.
The Adjudicating Authority’s confirmation is crucial.
3. N. Narayanan v. Union of India, (2019) 4 SCC 1
Supreme Court reiterated the need for a well-reasoned order when the attachment is confirmed.
Mere suspicion is not enough; concrete material must exist.
📝 Summary Table:
| Aspect | Details |
|---|---|
| Provision | Section 6, Prevention of Money Laundering Act, 2002 |
| Power | Provisional attachment of property suspected in money laundering |
| Duration | 180 days provisional attachment |
| Confirming Authority | Adjudicating Authority |
| Judicial Safeguards | Attachment subject to judicial review; reason to believe required |
| Purpose | To prevent disposal or transfer of tainted property during investigation |
⚠️ Practical Implications:
Property can be attached without prior notice to the owner if suspected.
The owner can approach the Adjudicating Authority to contest attachment.
The attachment acts as a security during investigation and trial.
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