Some Basic Terms explained

 

1. Adjudicating Authority – The authority consists of a chairperson and two other members having knowledge and experience in the field of law, administration, finance, and accountancy.
2. Proceeds of crime – According to Section 2(u) of the Act, “Proceeds of Crime”, means that “any property which derived or obtained (directly or indirectly) as a result of criminal activity mentioned under scheduled offense”
3. Special Courts – According to Section 2(z) of the Act, “Special Courts” are the courts of session under the Prevention of Money Laundering Act, 2002.
4. Scheduled Offence – According to Section 2(y) of the Act, Offences mentioned under Part A, Part B, Part C of the schedule provided are the scheduled offense.

 

What is the offense under Section 3 of the Act?

 

According to Section 3, whoever is found indulged in the process of concealment, possession, acquisition, or projection of untainted property, then such person shall be guilty of the offense of money laundering.

 

How to apply

 

The process involved in Adjudication of Property under PMLA, 2002

 

1. According to Section 8, if the Adjudicating Authority receives a complaint or has reasons to believe that the offense provided under Section 3 has been committed, then the adjudication officer may serve a notice of 30 days within which the alleged/suspected person have to indicate the sources of income, earnings or assets, and other relevant information and prove before the authority that why such property should not be declared to be involved in the money-laundering process.
2. Following the notice served to the suspected person, the authority must give the fair opportunity of being heard and consider time for a reply and take into account all the relevant information placed on record before him.
3. Proceeding, the authority shall decide either the attached property can be continued to have the person or shall be confiscated from that person
4. The property can be confiscated or the order of the confiscation means the property confiscated by the appointed person, and the case will be referred to the Special Court. 
5. If the special court finds that the money laundering offense has been committed, then the confiscated property shall be hand over to the Central Government
6. If the special court finds that the offense has not been committed, then the confiscated property shall be released to the entitled person.
7. In other circumstances, if the trial was concluded due to the death of the person or the person being default offender, the special court on an application by the person entitling the title over the property shall pass any order as it may deem fit and necessary following the facts and materials placed before it.

 

Appeals

An appellate authority is established by the Central Government to hear appeals against the orders of the Adjudicating Authority and the authorities under the Act.

 

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