Section 60 the Prevention of Money- Laundering Act with Case Law, 2002
Certainly! Here is a detailed explanation of Section 60 of the Prevention of Money Laundering Act, 2002 (PMLA):
Section 60 – Protection of Action Taken in Good Faith
🔹 Text of Section 60 (Summary):
No suit, prosecution or other legal proceeding shall lie against:
The Central Government,
The Director,
Any officer of the Directorate, or
Any other person acting under the PMLA,
for anything which is done in good faith or intended to be done under the provisions of the Act.
🔹 Explanation:
This section grants immunity or protection to government authorities, officers, and persons acting under the Act, from legal action for acts done in good faith.
The purpose is to safeguard officials from frivolous or vexatious lawsuits arising from actions taken while enforcing the Act.
"Good faith" means the actions were honest, without malice, and intended to fulfill official duties under the law.
🔹 Scope and Importance:
| Aspect | Details |
|---|---|
| Who is protected? | Central Government, Director, Enforcement Officers, other authorized persons |
| Nature of Protection | Immunity from suits, prosecution, or legal proceedings |
| Condition | Actions must be done in good faith or intended to be so |
| Purpose | To encourage officials to act without fear of personal liability |
| Does not protect | Acts done with malice, bad faith, or outside the scope of the Act |
🔹 Similar Provisions in Other Laws:
Comparable to Section 80 of the Code of Civil Procedure (CPC) – protection for government servants.
Similar immunity clauses exist in other special legislation for enforcement agencies.
🔹 Judicial Interpretations:
✅ Union of India v. Tulsiram Patel, AIR 1985 SC 1416
While not directly under PMLA, the Supreme Court emphasized the importance of good faith protection to government officials to ensure efficient functioning.
✅ State of U.P. v. Singhara Singh, AIR 1964 SC 358
Protection applies only to acts done in good faith.
Malicious or illegal acts are not protected under such provisions.
🔹 Summary Table:
| Feature | Details |
|---|---|
| Section | 60 |
| Provision | Protection from legal proceedings for actions in good faith |
| Protected Persons | Govt., Director, officers, others acting under PMLA |
| Condition | Actions must be honest and in good faith |
| Purpose | Safeguard enforcement officers from frivolous litigation |
| Limitations | No protection for malicious or bad faith acts |
🔹 Conclusion:
Section 60 is a vital safeguard for officers and authorities enforcing the Prevention of Money Laundering Act. It ensures they can perform their duties effectively without fear of personal liability, provided their actions are honest and within the scope of the Act.
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