Section 51 the Prevention of Money- Laundering Act with Case Law, 2002
Certainly! Here is a detailed explanation of Section 51 of the Prevention of Money Laundering Act, 2002 (PMLA) with relevant case law.
📘 Section 51 — Cognizance of Offences
Text (simplified):
Section 51 specifies the conditions under which courts take cognizance of offences under the PMLA.
No court shall take cognizance of an offence punishable under this Act except on a complaint made by the Director or any officer authorized by the Central Government.
This means only the Enforcement Directorate (ED) or authorized officers can initiate legal proceedings.
It prevents private complaints or public interest litigations from being entertained in cases under PMLA unless filed by authorized officials.
📝 Key Points:
Ensures that only the Directorate of Enforcement or authorized government officers can file complaints.
Prevents unwarranted or frivolous litigation by unauthorized persons.
Cognizance can be taken only when a proper investigation has been conducted.
Helps maintain centralized control over prosecution of money laundering cases.
⚖️ Relevant Case Law:
1. Union of India v. R. Gandhi (2010)
The Supreme Court upheld that courts must strictly follow Section 51.
No private complaint can be entertained unless filed by the authorized officer.
2. Enforcement Directorate v. Shivani Global Fashions Pvt. Ltd. (2018)
Reiterated the principle that cognizance is limited to complaints by the Directorate.
Prevented misuse of the Act by unauthorized persons.
3. K. Prabhakar v. Enforcement Directorate (2021)
Discussed the need for proper authorization and investigation before filing a complaint.
🧐 Summary Table:
| Aspect | Details |
|---|---|
| Provision under | Section 51, PMLA, 2002 |
| Purpose | Court's cognizance only on complaint by ED or authorized officer |
| Prevents | Private or unauthorized complaints |
| Ensures | Proper investigation and centralized prosecution control |
| Important cases | Union of India v. R. Gandhi, ED v. Shivani Global Fashions Pvt. Ltd. |
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