Section 68 the Prevention of Money- Laundering Act with Case Law, 2002
Section 68 of the Prevention of Money-Laundering Act, 2002 (PMLA)
Text of Section 68:
Power to make rules
The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Act.
Explanation:
Section 68 empowers the Central Government to frame rules necessary for effective implementation of the PMLA.
These rules can provide detailed procedures, forms, and guidelines to operationalize the Act.
Such rule-making power is essential for the practical functioning of the law, covering aspects like filing of reports, investigation procedures, and administrative matters.
The rules must be consistent with the provisions of the Act.
Key Features:
| Aspect | Description |
|---|---|
| Purpose | To empower the Central Government to make procedural and administrative rules |
| Who can make rules | Central Government |
| How | By notification in the Official Gazette |
| Scope | To carry out the provisions of the Act |
| Legal nature | Subordinate legislation |
⚖️ Relevant Context and Case Law:
While Section 68 itself is procedural and does not typically involve adjudication or judicial interpretation, rules made under this section must comply with the Act and constitutional principles.
Courts have held that rules made under similar enabling provisions cannot override or dilute the substantive provisions of the parent legislation.
Example: Delhi High Court in Enforcement Directorate v. Patel Engineering Ltd. (2010)
Discussed the importance of rules in procedural matters under PMLA.
📌 Summary:
Section 68 is the rule-making provision for the Prevention of Money Laundering Act, allowing the Central Government to lay down detailed procedural guidelines.
This ensures flexibility and adaptability in enforcing the Act.
Rules framed under this section help in the effective and uniform implementation of the law.
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