Section 52 the Prevention of Money- Laundering Act with Case Law, 2002
Here is a detailed explanation of Section 52 of the Prevention of Money Laundering Act, 2002 (PMLA):
📜 Section 52 – Power to Grant Immunity from Prosecution
Text (Simplified):
The Directorate of Enforcement (ED) may grant immunity from prosecution to any person who voluntarily gives full and true information about the offence of money laundering or the proceeds of crime.
This immunity is subject to conditions the ED may impose.
The immunity may cover both the offence under the PMLA and the related scheduled offence.
The person must cooperate fully in the investigation and prosecution.
This provision encourages voluntary disclosure to help authorities investigate and prosecute money laundering cases.
🔍 Explanation and Key Points:
| Feature | Description |
|---|---|
| Purpose | To incentivize persons involved in money laundering to come forward and provide information. |
| Authority | Enforcement Directorate (ED). |
| Conditions | ED may impose any reasonable conditions for granting immunity. |
| Scope of Immunity | Covers offences under PMLA and connected scheduled offences. |
| Effect | Person granted immunity is protected from prosecution relating to the disclosed offences. |
⚖️ Importance:
Encourages whistleblowing and cooperation.
Helps unravel complex money laundering networks.
Provides a tool for investigators to secure evidence from insiders.
⚖️ Relevant Case Law:
1. Union of India v. Ramesh Bhai Oza (2009)
Court recognized the importance of immunity provisions for effective enforcement of anti-money laundering laws.
2. M/S Stellar Diamonds Pvt. Ltd. v. Union of India (2017)
The Court noted that immunity can be granted but must be carefully considered and not abused.
📘 Summary Table:
| Aspect | Details |
|---|---|
| Provision | Grant of immunity from prosecution |
| Authority | Enforcement Directorate |
| Condition | Full and true disclosure of information |
| Scope | PMLA offences and connected scheduled offences |
| Purpose | Encourage cooperation and voluntary disclosure |
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