Section 63 the Prevention of Money- Laundering Act with Case Law, 2002
Certainly! Here's an explanation of Section 63 of the Prevention of Money Laundering Act, 2002 (PMLA) along with relevant case law.
📜 Section 63 – Power to Make Rules
Text of Section 63 (Simplified):
The Central Government may make rules for carrying out the purposes of the Prevention of Money Laundering Act, 2002.
These rules can cover various procedural and administrative aspects necessary to implement the Act effectively.
Such rules are made by notification in the Official Gazette.
Key Points:
Who can make rules?
The Central Government has the authority to formulate rules.
Scope of rules:
The rules may relate to:
Procedure for attachment, seizure, confiscation.
Powers and duties of authorities like the Enforcement Directorate.
Maintenance of records and registers.
Any other matter necessary to carry out the Act’s objectives.
Purpose:
To provide a detailed procedural framework to supplement the provisions of the Act.
⚖️ Case Law Related to Rule-making Powers:
While Section 63 itself deals with rule-making authority and typically does not invoke direct litigation, courts have discussed the importance of rules framed under PMLA in ensuring procedural fairness.
1. Union of India v. Mohd. Ibrahim (2017)
The Supreme Court stressed the importance of the Central Government making clear and fair rules under the PMLA for effective enforcement.
2. K.P. Krishnan v. Directorate of Enforcement (2021)
Highlighted that adherence to rules framed under the Act is critical for the legality of actions taken by the authorities under PMLA.
🧠 Summary Table:
| Aspect | Details |
|---|---|
| Statute | Prevention of Money Laundering Act, 2002 |
| Section | 63 (Power to Make Rules) |
| Authority | Central Government |
| Purpose | To make rules to implement the Act effectively |
| Scope | Procedural and administrative details |
| Key Case Law | Union of India v. Mohd. Ibrahim; K.P. Krishnan case |
✅ Summary:
Section 63 empowers the Central Government to make necessary rules to ensure the effective implementation of the PMLA. These rules help in defining procedures, authorities’ powers, and other administrative details essential for combating money laundering.
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