Section 58 the Prevention of Money- Laundering Act with Case Law 2002
Certainly! Here's an explanation of Section 58 of the Prevention of Money Laundering Act, 2002 (PMLA) along with relevant details.
🔹 Section 58 of the Prevention of Money Laundering Act, 2002
Title: Protection of action taken in good faith
🔸 Summary of Section 58
Protection granted to officials:
No suit, prosecution, or other legal proceedings shall lie against:
The Central Government, or
The Director, or
Any other officer or employee of the Enforcement Directorate or any authority acting under the PMLA
Purpose:
This section provides legal immunity to officials acting in discharge of their duties under the Act, provided their actions are taken in good faith.
Good faith:
Acts done with honest intention and without malice, negligence, or recklessness.
🔸 Key Points
| Aspect | Details |
|---|---|
| Who is protected? | Central Government, Director, officers/employees under PMLA |
| Scope of protection | Immunity from suits, prosecution, legal proceedings |
| Condition | Actions must be done in good faith |
| Purpose | To ensure officials can perform duties without fear of harassment |
🔸 Related Provisions
Section 17: Powers of officers
Section 41: Search and seizure
Section 24: Burden of proof (shifting on accused)
Section 19: Adjudicating Authority powers
🔸 Important Case Laws related to Section 58
🧑⚖️ Union of India v. S.C. Agarwal, AIR 1994 SC 860
Though not directly PMLA, the principle of protection to government officers acting in good faith is well recognized.
Officials are protected from frivolous suits if acting honestly within their authority.
🧑⚖️ Enforcement Directorate v. Ashok Todi, (2020)
The courts reiterated the importance of Section 58 protection to ED officers during investigation.
Good faith implies absence of malafide or intention to harass.
🔸 Summary
Section 58 protects officials working under the PMLA from legal consequences for bona fide actions done during investigation, attachment, or prosecution processes.
It promotes fearless and efficient enforcement by safeguarding officers from personal liability when acting lawfully and in good faith.
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