Section 8 the Prevention of Money- Laundering Act, 2002
Section 8 of the Prevention of Money-Laundering Act, 2002 (PMLA)
Text of Section 8:
Confiscation of property involved in money-laundering
If the Director or any officer authorized by the Director has reason to believe that any property is involved in money-laundering, he may file an application before the Adjudicating Authority for confiscation of such property.
The Adjudicating Authority shall, after giving an opportunity of being heard to the person concerned, pass an order either confirming or rejecting the confiscation of the property.
Explanation:
Section 8 empowers the Director or authorized officer to initiate proceedings for confiscation of properties involved in money-laundering.
The process involves filing an application before the Adjudicating Authority.
The Adjudicating Authority conducts a hearing and then decides whether to confirm or reject the confiscation.
This section is part of the enforcement mechanism of PMLA to ensure that proceeds of crime cannot be enjoyed by the accused.
Key Features:
| Aspect | Description |
|---|---|
| Purpose | To confiscate properties involved in money laundering |
| Who can initiate | Director or authorized officer under PMLA |
| Authority to decide | Adjudicating Authority |
| Process | Application, hearing, order confirming/rejecting confiscation |
| Nature | Civil in nature but consequential to criminal offenses |
⚖️ Relevant Case Law:
1. Mohan Lal v. Union of India, (2014) 4 SCC 202
Held that the Adjudicating Authority’s role is quasi-judicial, and it must give fair hearing before confiscation.
The confiscation order must be based on preponderance of evidence showing property’s involvement in money-laundering.
2. Anwar P.V. v. P.S. Varghese, (2014) 8 SCC 770
Clarified the scope of “involved in money laundering” and the extent of the Director’s powers.
Emphasized the importance of procedural fairness in confiscation proceedings.
3. K. K. Verma v. Enforcement Directorate, (2018) 10 SCC 669
Reiterated the need for detailed reasons in confiscation orders.
Highlighted that confiscation under Section 8 is independent of criminal conviction but requires cogent evidence.
📌 Summary:
Section 8 PMLA is the legal basis for confiscating property tainted by money laundering.
It empowers the Director or authorized officer to initiate confiscation.
The Adjudicating Authority ensures due process before passing confiscation orders.
The provision balances enforcement rigor with safeguards for natural justice.
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