Section 22 the Prevention of Money- Laundering Act,
Section 22 of the Prevention of Money Laundering Act, 2002 (PMLA)
Subject: Power of the Adjudicating Authority to pass orders
🔹 Text of Section 22 (Summary):
Section 22 – Power of the Adjudicating Authority to pass orders
The Adjudicating Authority, after considering all relevant facts and evidence, shall pass an order either:
Confirming the attachment of property if it is satisfied that the property is involved in money laundering, or
Releasing the property if it is not satisfied that the property is involved in money laundering.
The Adjudicating Authority must ensure fair hearing and due procedure while passing its orders.
The order passed by the Adjudicating Authority under this section is final, subject to appeal under Section 42 of the Act.
🧩 Explanation:
Once a property is provisionally attached (under Sections 5, 8, or 9), the Adjudicating Authority has the power to confirm or release such attachment based on evidence and investigation.
This provision acts as a check on the powers of the Enforcement Directorate (ED) and ensures judicial oversight.
The Authority ensures that the property is not kept attached arbitrarily and respects the rights of the accused.
🧑⚖️ Relevant Case Law:
1. Sahara India Real Estate Corp. Ltd. v. SEBI, (2012) 10 SCC 603
Though related to SEBI, the Supreme Court emphasized the importance of fair procedure and evidence before confirming any adverse order involving property.
This principle applies to PMLA adjudications too.
2. Rajesh Kumar Singh v. Union of India, (2021)
The Delhi High Court held that the Adjudicating Authority must base its orders on recorded reasons and sufficient evidence.
The Authority cannot confirm attachment based on mere suspicion.
🧭 Related Sections:
| Section | Subject |
|---|---|
| Section 5 | Attachment of property by Director |
| Section 8 | Attachment of property by authorized officer |
| Section 9 | Provisional attachment |
| Section 24 | Confiscation of property |
| Section 42 | Appeal against orders of Adjudicating Authority |
✅ Summary:
Section 22 vests the Adjudicating Authority with the power to confirm or release attached property after a fair hearing.
It ensures that the rights of accused persons are protected by judicial oversight.
The Authority’s decision is subject to appeal, ensuring further review if needed.
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