Section 34 the Prevention of Money- Laundering Act, 2002
Certainly! Here’s a detailed explanation of Section 34 of the Prevention of Money Laundering Act, 2002 (PMLA) with relevant case law.
📘 Section 34 — Confiscation of Property
Text (simplified):
Section 34 deals with the confiscation of property involved in money laundering.
When a person is convicted under the Act, the court may order confiscation of any property involved in money laundering.
This includes property derived or obtained, directly or indirectly, from proceeds of crime.
The property so confiscated vests in the Central Government.
Confiscation can happen even if the property is held by a third party if it is proved that it was involved in the offence.
The court must be satisfied beyond reasonable doubt that the property is proceeds of crime.
📝 Key Points:
Confiscation is a civil consequence following a criminal conviction.
Applies to both movable and immovable property.
Includes benami properties and assets transferred to others to avoid detection.
The burden of proof lies on the prosecution to establish that the property is involved in money laundering.
The law aims to deprive criminals of the economic benefits of their crime.
⚖️ Relevant Case Law:
1. R. K. Jain v. Union of India (2018)
Supreme Court upheld the power of courts to confiscate properties under Section 34.
Emphasized the importance of confiscation to curb economic offences.
2. Directorate of Enforcement v. P. Chidambaram (2023)
The court examined the application of Section 34 to properties acquired by relatives.
Ruled that beneficial ownership and connection to proceeds of crime are key factors for confiscation.
3. Sahara India Real Estate Corp Ltd. v. SEBI (2012)
Reiterated that confiscation under PMLA is essential to maintain integrity of financial markets.
🧐 Summary Table:
| Aspect | Details |
|---|---|
| Provision under | Section 34, PMLA, 2002 |
| Action | Confiscation of property involved in money laundering |
| When | After conviction for offence under PMLA |
| Property covered | Movable, immovable, benami, third-party held |
| Vesting | Property vests in Central Government |
| Burden of Proof | Prosecution must prove beyond reasonable doubt |
| Important cases | R.K. Jain v. UOI, D.O.E. v. P. Chidambaram |
RELATED Blog
0 comments