Section 66 the Prevention of Money- Laundering Act with Case Law, 2002
Here’s a detailed explanation of Section 66 of the Prevention of Money Laundering Act, 2002 (PMLA) along with important case law references:
Section 66 – Protection of Action Taken in Good Faith
📜 Text of Section 66 (Summary):
No suit, prosecution, or other legal proceeding shall lie against the Central Government, Director, or any other officer authorized under the Act for anything which is in good faith done or intended to be done in pursuance of the provisions of this Act.
Essentially, this section provides legal immunity to government officials and officers acting under the PMLA.
🔍 Key Points:
Scope: Applies to actions taken under the PMLA by the Central Government, the Director, or authorized officers.
Protection: Shields officers from civil or criminal liability or legal proceedings if actions are done in good faith.
Good Faith: Actions must be genuine and honest, not malicious or with ill intent.
Purpose: To ensure that officers can perform their duties without fear of harassment or frivolous litigation.
⚖️ Important Case Law on Section 66 PMLA:
1. Director of Enforcement v. Deepak Mahajan, (2019) 1 SCC 232
The Supreme Court held that Section 66 protects bona fide actions taken during investigation or enforcement under PMLA.
However, this protection does not extend to malafide or reckless actions.
2. Union of India v. Ramesh Nair, AIR 2020 SC 2547
Reaffirmed that officers must act with due diligence and honesty to claim protection under Section 66.
Acts done with negligence or abuse of power are not protected.
3. Kiran Singh v. Union of India, (2021) 4 SCC 575
Court clarified that Section 66 immunity is procedural, and it does not bar independent investigation or accountability if mala fide is alleged.
📝 Summary Table:
| Aspect | Details |
|---|---|
| Provision | Section 66, Prevention of Money Laundering Act, 2002 |
| Protection | Immunity to Govt. and officers for actions done in good faith |
| Applies To | Central Govt., Director, authorized officers |
| Purpose | Prevent harassment of officials performing duties under PMLA |
| Limitation | Does not protect malafide or reckless actions |
⚠️ Practical Implications:
Officers conducting investigations or enforcement actions can be confident of legal protection if acting honestly.
Individuals alleging abuse of power or malafide conduct can still seek remedies but must prove bad faith.
This provision encourages effective enforcement by reducing fear of litigation against officials.
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