An
Act to prevent money-laundering and to provide for confiscation of property
derived from, or involved in, money-laundering and for matters connected
therewith or incidental thereto.
Whereas the
Political Declaration and Global Programme of Action, annexed to the resolution
S-17/2 was adopted by the General Assembly of the United Nations at its
seventeenth special session on the twenty-third day of February, 1990;
And whereas the Political Declaration adopted
by the Special Session of the United Nations General Assembly held on 8th to
10th June, 1998 calls upon the Member States to adopt national money-laundering
legislation and programme;
And whereas it is considered necessary to
implement the aforesaid resolution and the Declaration.
Be it enacted by Parliament in the Fifty-third Year of
the Republic of India as follows :—
Short title, extent and commencement.
(1)
This Act may be called the
Prevention of Money Laundering Act, 2002.
(2)
It extends to the whole of India.
(3) It
shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint, and different dates may be
appointed for different provisions of this Act and any reference in any such
provision to the commencement of this Act shall be construed as a reference to
the coming into force of that provision.
(1)
In this Act, unless the context
otherwise requires,—
(a) “Adjudicating
Authority” means an Adjudicating Authority appointed under sub-section (1) of
section 6;
(b) “Appellate
Tribunal” means the Appellate Tribunal established under section 25;
(c) “Assistant
Director” means an Assistant Director appointed under sub-section (1) of
section 49;
(d) “attachment”
means prohibition of transfer, conversion, disposition or movement of property
by an order issued under Chapter III;
(e) “banking
company” means a banking company or a co-operative bank to which the Banking
Regulation Act, 1949 (10 of 1949) applies and includes any bank or banking
institution referred to in section 51 of that Act;
(f) “Bench”
means a Bench of the Appellate Tribunal;
(g) “Chairperson” means the Chairperson of
the Appellate Tribunal;
(h) “chit
fund company” means a company managing, conducting or supervising, as foreman,
agent or in any other capacity, chits as defined in section 2 of the Chit Funds
Act, 1982 (40 of 1982);
(i) “co-operative
bank” shall have the same meaning as assigned to it in clause (dd) of section 2
of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of
1961);
(j) “Deputy
Director” means a Deputy Director appointed under sub-section (1) of section
49;
(k) “Director”
or “Additional Director” or “Joint Director” means a Director or Additional
Director or Joint Director, as the case may be, appointed under sub-section (1)
of section 49;
(l) “financial
institution” means a financial institution as defined in clause (c) of section
45-I of the Reserve Bank of India Act, 1934 (2 of 1934) and includes a chit
fund company, a co-operative bank, a housing finance institution and a
non-banking financial company;
(m) “housing
finance institution” shall have the meaning as assigned to it in clause (d) of
section 2 of the National Housing Bank Act, 1987 (53 of 1987);
(n) “intermediary”
means a stock-broker, sub-broker, share transfer agent, banker to an issue,
trustee to a trust deed, registrar to an issue, merchant banker, underwriter,
portfolio manager, investment adviser and any other intermediary associated
with securities market and registered under section 12 of the Securities and
Exchange Board of India Act, 1992 (15 of 1992);
(o) “Member”
means a Member of the Appellate Tribunal and includes the Chairperson;
(p) “Money-laundering” has the meaning
assigned to it in section 3;
(q) “non-banking financial company” shall
have the same meaning as assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of
1934);
(r) “notification”
means a notification published in the Official Gazette;
(s) “person” includes—
(i) an individual,
(ii) a
Hindu undivided family,
(iii) a company,
(iv) a
firm,
(v) an association of persons or a body of
individuals, whether incorporated or not,
(vi) every
artificial juridical person, not falling within any of the preceding
sub-clauses, and
(vii) any
agency, office or branch owned or controlled by any of the above persons
mentioned in the preceding sub-clauses;
(t) “prescribed” means prescribed by
rules made under this Act;
(u) “proceeds
of crime” means any property derived or obtained, directly or indirectly, by
any person as a result of criminal activity relating to a scheduled offence or
the value of any such property;
(v) “property”
means any property or assets of every description, whether corporeal or
incorporeal, movable or immovable, tangible or intangible and includes deeds
and instruments evidencing title to, or interest in, such property or assets,
wherever located;
(w) “records”
include the records maintained in the form of books or stored in a computer or
such other form as may be prescribed;
(x) “Schedule” means the Schedule to
this Act;
(y) “scheduled offence” means—
(i) the offences specified under Part A of
the Schedule; or
(ii) the
offences specified under Part B of the Schedule if the total value involved in
such offences is thirty lakh rupees or more;
(z) “Special
Court” means a Court of Session designated as Special Court under sub-section
(1) of section 43;
(za) “transfer”
includes sale, purchase, mortgage, pledge, gift, loan or any other form of
transfer of right, title, possession or lien;
(zb) “value”
means the fair market value of any property on the date of its acquisition by
any person, or if such date cannot be determined, the date on which such
property is possessed by such person.
(2)
Any reference, in this Act or the Schedule, to any enactment
or any provision thereof shall, in relation to an area in which such enactment
or such provision is not in force, be construed as a reference to the
corresponding law or the relevant provisions of the corresponding law, if any,
in force in that area.
Offence
of Money-Laundering
Whosoever
directly or indirectly attempts to indulge or knowingly assists or knowingly is
a party or is actually involved in any process or activity connected with the
proceeds of crime and projecting it as untainted property shall be guilty of
offence of money-laundering.
Punishment for money-laundering.
Whoever
commits the offence of money-laundering shall be punishable with rigorous
imprisonment for a term which shall not be less than three years but which may
extend to seven years and shall also be liable to fine which may extend to five
lakh rupees :
Provided that where the proceeds of crime involved in
money-laundering relate to any offence specified under paragraph 2 of Part A of
the Schedule, the provisions of this section shall have effect as if for the
words “which may extend to seven years”, the words “which may extend to ten
years” had been substituted.
Attachment of property involved in
money-laundering.
(1) Where the
Director, or any other officer not below the rank of Deputy Director authorised
by him for the purposes of this section, has reason to believe (the reason for
such belief to be recorded in writing), on the basis of material in his
possession, that—
(a) any person
is in possession of any proceeds of crime;
(b) such
person has been charged of having committed a scheduled offence; and
(c) such
proceeds of crime are likely to be concealed, transferred or dealt with in any
manner which may result in frustrating any proceedings relating to confiscation
of such proceeds of crime under this Chapter, he may, by order in writing,
provisionally attach such property for a period not exceeding ninety days from
the date of the order, in the manner provided in the Second Schedule to the
Income-tax Act, 1961 (43 of 1961) and the Director or the other officer so
authorised by him, as the case may be, shall be deemed to be an officer under
sub-rule (e) of rule 1 of that Schedule:
Provided that no such order of attachment shall be made
unless, in relation to an offence under—
(i) Paragraph
1 of Part A and Part B of the Schedule, a report has been forwarded to a
Magistrate under section 173 of the Code of Criminal Procedure, 1973 (2 of
1974); or
(ii) Paragraph
2 of Part A of the Schedule, a police report or a complaint has been filed for
taking cognizance of an offence by the Special Court constituted under
sub-section (1) of section 36 of the Narcotic Drugs and Psychotropic Substances
Act, 1985 (61 of 1985).
(2) The
Director, or any other officer not below the rank of Deputy Director, shall,
immediately after attachment under sub-section (1), forward a copy of the
order, along with the material in his possession, referred to in that
sub-section, to the Adjudicating Authority, in a sealed envelope, the manner as
may be prescribed and such Adjudicating Authority shall keep such order and
material for such period as may be prescribed.
(3) Every
order of attachment made under sub-section (1) shall cease to have effect after
the expiry of the period specified in that sub-section or on the date of an
order made under sub-section (2) of section 8, whichever is earlier.
(4) Nothing
in this section shall prevent the person interested in the enjoyment of the
immovable property attached under sub-section (1) from such enjoyment.
Explanation.—For
the purposes of this sub-section,“person interested” in relation to any
immovable property, includes all persons claiming or entitled to claim any
interest in the property.
(5) The
Director or any other officer who provisionally attaches any property under
sub-section (1) shall, within a period of thirty days from such attachment,
file a complaint stating the facts of such attachment before the Adjudicating
Authority.
Adjudicating authorities, composition, powers,
etc.
(1) The
Central Government shall, by notification appoint one or more Adjudicating
Authorities to exercise jurisdiction, power and authority conferred by or under
this Act.
(2) An Adjudicating Authority shall consist of a Chairperson and
two other Members:
Provided that one Member each shall be a person having
experience in the field of law, administration, finance or accountancy.
(3) A
person shall, however, not be qualified for appointment as Member of an
Adjudicating Authority,—
(a) in the
field of law, unless he—
(i) is qualified for appointment as
District Judge; or
(ii) has
been a Member of the Indian Legal Service and has held a post in Grade I of that
service;
(b) in the
field of finance, accountancy or administration unless he possesses such
qualifications, as may be prescribed.
(4) The
Central Government shall appoint a Member to be the Chairperson of the
Adjudicating Authority.
(5) Subject to the provisions of this Act,—
(a) the
jurisdiction of the Adjudicating Authority may be exercised by Benches thereof;
(b) a Bench
may be constituted by the Chairperson of the Adjudicating Authority with one or
two Members as the Chairperson of the Adjudicating Authority may deem fit;
(c) the
Benches of the Adjudicating Authority shall ordinarily sit at New Delhi and at
such other places as the Central Government may, in consultation with the
Chairperson, by notification, specify;
(d) the
Central Government shall, by notification, specify the areas in relation to
which each Bench of the Adjudicating Authority may exercise jurisdiction.
(6) Notwithstanding
anything contained in sub-section (5), the Chairperson may transfer a Member
from one Bench to another Bench.
(7) If at
any stage of the hearing of any case or matter it appears to the Chairperson or
a Member that the case or matter is of such a nature that it ought to be heard
by a Bench consisting of two Members, the case or matter may be transferred by
the Chairperson or, as the case may be, referred to him for transfer, to such
Bench as the Chairperson may deem fit.
(8) The
Chairperson and every Member shall hold office as such for a term of five years
from the date on which he enters upon his office:
Provided that no Chairperson or other Member shall hold office
as such after he has attained the age of sixty-two years.
(9) The
salary and allowances payable to and the other terms and conditions of service
of the Member shall be such as may be prescribed:
Provided that neither the salary and allowances nor the other
terms and conditions of service of the Members shall be varied to his
disadvantage after appointment.
(10) If, for
reasons other than temporary absence, any vacancy occurs in the office of the Chairperson
or any other Member, then, the Central Government shall appoint another person
in accordance with the provisions of this Act to fill the vacancy and the
proceedings may be continued before the Adjudicating Authority from the stage
at which the vacancy is filled.
(11) The
Chairperson or any other Member may, by notice in writing under his hand
addressed to the Central Government, resign his office:
Provided that the Chairperson or any other Member shall,
unless he is permitted by the Central Government to relinquish his office
sooner, continue to hold office until the expiry of three months from the date
of receipt of such notice or until a person duly appointed as his successor
enters upon his office or until the expiry of his term of office, whichever is
the earliest.
(12) The
Chairperson or any other Member shall not be removed from his office except by
an order made by the Central Government after giving necessary opportunity of
hearing.
(13) In the
event of the occurrence of any vacancy in the office of the Chairperson by
reason of his death, resignation or otherwise, the senior-most Member shall act
as the Chairperson of the Adjudicating Authority until the date on which a new
Chairperson, appointed in accordance with the provisions of this Act to fill
such vacancy, enters upon his office.
(14) When the
Chairperson of the Adjudicating Authority is unable to discharge his functions
owing to absence, illness or any other cause, the senior-most Member shall
discharge the functions of the Chairperson of the Adjudicating Authority until
the date on which the Chairperson of the Adjudicating Authority resumes his
duties.
(15) The
Adjudicating Authority shall not be bound by the procedure laid down by the
Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the
principles of natural justice and, subject to the other provisions of this Act,
the Adjudicating Authority shall have powers to regulate its own procedure.
Staff of Adjudicating Authorities.
(1) The
Central Government shall provide each Adjudicating Authority with such officers
and employees as that Government may think fit.
(2) The
officers and employees of the Adjudicating Authority shall discharge their
functions under the general superintendence of the Chairperson of the Adjudicating
Authority.
(3) The
salaries and allowances and other conditions of service of the officers and
employees of the Adjudicating Authority shall be such as may be prescribed.
(1) On
receipt of a complaint under sub-section (5) of section 5, or applications made
under sub-section (4) of section 17 or under sub-section (10) of section 18 if
the Adjudicating Authority has reason to believe that any person has committed
an offence under section 3, he may serve a notice of not less than thirty days
on such person calling upon him to indicate the sources of his income, earning
or assets, out of which or by means of which he has acquired the property
attached under sub-section (1) of section 5, or, seized under section 17 or
section 18, the evidence on which he relies and other relevant information and
particulars, and to show cause why all or any of such properties should not be
declared to be the properties involved in money-laundering and confiscated by
the Central Government:
Provided that where a notice under this sub-section specifies
any property as being held by a person on behalf of any other person, a copy of
such notice shall also be served upon such other person:
Provided further that where such property is held jointly by more than
one person, such notice shall be served to all persons holding such property.
(2)
The Adjudicating Authority shall,
after—
(a) considering
the reply, if any, to the notice issued under sub-section (1);
(b) hearing
the aggrieved person and the Director or any other officer authorised by him in
this behalf; and
(c) taking
into account all relevant materials placed on record before him, by an order,
record a finding whether all or any of the properties referred to in the notice
issued under sub-section (1) are involved in money-laundering:
Provided that if the property is claimed by a person, other
than a person to whom the notice had been issued, such person shall also be
given an opportunity of being heard to prove that the property is not involved
in money-laundering.
(3) Where
the Adjudicating Authority decides under sub-section (2) that any property is
involved in money-laundering, he shall, by an order in writing, confirm the
attachment of the property made under sub-section (1) of section 5 or retention
of property or record seized under section 17 or section 18 and record a
finding to that effect, such attachment or retention of the seized property or
record shall—
(a) continue
during the pendency of the proceedings relating to any scheduled offence before
a court; and
(b) become
final after the guilt of the person is proved in the trial court and order of
such trial court becomes final.
(4) Where
the provisional order of attachment made under sub-section (1) of section 5 has
been confirmed under sub-section (3), the Director or any other officer
authorised by him in this behalf shall forthwith take the possession of the
attached property.
(5) Where
on conclusion of a trial for any scheduled offence, the person concerned is
acquitted, the attachment of the property or retention of the seized property
or record under sub-section (3) and net income, if any, shall cease to have
effect.
(6) Where
the attachment of any property or retention of the seized property or record
becomes final under clause (b) of sub-section (3), the Adjudicating Authority
shall, after giving an opportunity of being heard to the person concerned, make
an order confiscating such property.
Vesting
of property in Central Government.
Where
an order of confiscation has been made under sub-section (6) of section 8 in
respect of any property of a person, all the rights and title in such property
shall vest absolutely in the Central Government free from all encumbrances:
Provided that where the Adjudicating Authority, after giving
an opportunity of being heard to any other person interested in the property
attached under this Chapter, or seized under Chapter V, is of the opinion that
any encumbrance on the property or lease-hold interest has been created with a
view to defeat the provisions of this Chapter, it may, by order, declare such
encumbrances or lease-hold interest to be void and thereupon the aforesaid
property shall vest in the Central Government free from such encumbrances or
lease-hold interest:
Provided further that nothing in this section shall operate to
discharge any person from any liability in respect of such encumbrances which
may be enforced against such person by a suit for damages.
Management of properties confiscated under this
Chapter.
(1) The
Central Government may, by order published in the Official Gazette, appoint as
many of its officers (not below the rank of a Joint Secretary to the Government
of India) as it thinks fit, to perform the functions of an Administrator.
(2) The
Administrator appointed under sub-section (1) shall receive and manage the
property in relation to which an order has been made under sub-section (6) of
section 8 in such manner and subject to such conditions as may be prescribed.
(3) The
Administrator shall also take such measures, as the Central Government may
direct, to dispose of the property which is vested in the Central Government
under section 9.
Power regarding summons, production of documents and evidence, etc.
(1) The
Adjudicating Authority shall, for the purposes of this Act, have the same
powers as are vested in a civil court under the Code of Civil Procedure, 1908
(5 of 1908) while trying a suit in respect of the following matters, namely:—
(a) discovery
and inspection;
(b) enforcing
the attendance of any person, including any officer of a banking company or a
financial institution or a company, and examining him on oath;
(c) compelling
the production of records;
(d) receiving evidence on affidavits;
(e) issuing
commissions for examination of witnesses and documents; and
(f) any other matter which may be
prescribed.
(2) All the
persons so summoned shall be bound to attend in person or through authorised
agents, as the Adjudicating Authority may direct, and shall be bound to state
the truth upon any subject respecting which they are examined or make
statements, and produce such documents as may be required.
(3) Every
proceeding under this section shall be deemed to be a judicial proceeding
within the meaning of section 193 and section 228 of the Indian Penal Code (45
of 1860).
Banking companies, financial institutions and intermediaries to maintain records.
(1)
Every banking company, financial
institution and intermediary shall—
(a) maintain
a record of all transactions, the nature and value of which may be prescribed,
whether such transactions comprise of a single transaction or a series of
transactions integrally connected to each other, and where such series of
transactions take place within a month;
(b) furnish
information of transactions referred to in clause (a) to the Director within
such time as may be prescribed;
(c) verify
and maintain the records of the identity of all its clients, in such manner as
may be prescribed:
Provided that where the principal officer of a banking company
or financial institution or intermediary, as the case may be, has reason to
believe that a single transaction or series of transactions integrally
connected to each other have been valued below the prescribed value so as to
defeat the provisions of this section, such officer shall furnish information
in respect of such transactions to the Director within the prescribed time.
(2) The
records referred to in sub-section (1) shall be maintained for a period of ten
years from the date of cessation of the transactions between the clients and
the banking company or financial institution or intermediary, as the case may
be.
Powers of director to impose fine.
(1) The
Director may, either of his own motion or on an application made by any
authority, officer or person, call for records referred to in sub-section (1)
of section 12 and may make such inquiry or cause such inquiry to be made, as he
thinks fit.
(2) If the
Director, in the course of any inquiry, finds that a banking company, financial
institution or an intermediary or any of its officers has failed to comply with
the provisions contained in section 12, then, without prejudice to any other
action that may be taken under any other provisions of this Act, he may, by an
order, levy a fine on such banking company or financial institution or
intermediary which shall not be less than ten thousand rupees but may extend to
one lakh rupees for each failure.
(3) The
Director shall forward a copy of the order passed under sub-section (2) to
every banking company, financial institution or intermediary or person who is a
party to the proceedings under that sub-section.
No civil proceedings against banking companies, financial institutions, etc., in certain cases.
Save
as otherwise provided in section 13, the banking companies, financial
institutions, inter- mediaries and their officers shall not be liable to any
civil proceedings against them for furnishing information under clause (b) of
sub-section (1) of section 12.
The
Central Government may, in consultation with the Reserve Bank of India,
prescribe the procedure and the manner of maintaining and furnishing information
under sub-section (1) of section 12 for the purpose of implementing the
provisions of this Act.
(1) Notwithstanding
anything contained in any other provisions of this Act, where an authority, on
the basis of material in his possession, has reason to believe (the reasons for
such belief to be recorded in writing) that an offence under section 3 has been
committed, he may enter any place—
(i) within
the limits of the area assigned to him; or
(ii) in
respect of which he is authorised for the purposes of this section by such
other authority, who is assigned the area within which such place is situated,
at which any act constituting the commission of such offence is carried on, and
may require any proprietor, employee or any other person who may at that time
and place be attending in any manner to, or helping in, such act so as to,—
(i) afford
him the necessary facility to inspect such records as he may require and which
may be available at such place;
(ii) afford
him the necessary facility to check or verify the proceeds of crime or any
transaction related to proceeds of crime which may be found therein; and
(iii) furnish
such information as he may require as to any matter which may be useful for, or
relevant to, any proceedings under this Act.
Explanation.—For
the purposes of this sub-section, a place, where an act which constitutes the
commission of the offence is carried on, shall also include any other place,
whether any activity is carried on therein or not, in which the person carrying
on such activity states that any of his records or any part of his property
relating to such act are or is kept.
(2) The
authority referred to in sub-section (1) shall, after entering any place
referred to in that sub-section immediately after completion of survey, forward
a copy of the reasons so recorded along with material in his possession,
referred to in that sub-section, to the Adjudicating Authority in a sealed
envelope in the manner as may be prescribed and such Adjudicating Authority
shall keep such reasons and material for such period as may be prescribed.
(3)
An authority acting under this
section may—
(i) place
marks of identification on the records inspected by him and make or cause to be
made extracts or copies therefrom,
(ii) make
an inventory of any property checked or verified by him, and
(iii) record
the statement of any person present in the place which may be useful for, or
relevant to, any proceeding under this Act.
(1) Where the
Director, on the basis of information in his possession, has reason to believe
the reason for such belief to be recorded in writing) that any person—
(i) has
committed any act which constitutes money-laundering, or
(ii) is
in possession of any proceeds of crime involved in money-laundering, or
(iii) is in
possession of any records relating to money-laundering, then, subject to the
rules made in this behalf, he may authorise any officer subordinate to him to—
(a) enter
and search any building, place, vessel, vehicle or aircraft where he has reason
to suspect that such records or proceeds of crime are kept;
(b) break
open the lock of any door, locker, safe, almirah or other receptacle for
exercising the powers conferred by clause (a) where the keys thereof are not
available;
(c) seize any record or property found as a
result of such search;
(d) place
marks of identification on such record or make or cause to be made extracts or
copies therefrom;
(e) make a note or an inventory of such
record or property;
(f) examine
on oath any person, who is found to be in possession or control of any record
or property, in respect of all matters relevant for the purposes of any
investigation under this Act:
Provided that no search shall be conducted
unless, in relation to an offence under—
(a) Paragraph
1 of Part A and Part B of the Schedule, a report has been forwarded to a
Magistrate under section 173 of the Code of Criminal Procedure, 1973 (2 of
1974); or
(b) Paragraph
2 of Part A of the Schedule, a police report or a complaint has been filed for
taking cognizance of an offence by the Special Court constituted under
sub-section (1) of section 36 of the Narcotic Drugs and Psychotropic Substances
Act, 1985 (61 of 1985).
(2) The
authority, who has been authorised under sub-section (1) shall, immediately
after search and seizure, forward a copy of the reasons so recorded along with
material in his possession, referred to in that sub-section, to the
Adjudicating Authority in a sealed envelope, in the manner, as may be prescribed
and such Adjudicating Authority shall keep such reasons and material for such
period, as may be prescribed.
(3) Where
an authority, upon information obtained during survey under section 16, is
satisfied that any evidence shall be or is likely to be concealed or tampered
with, he may, for reasons to be recorded in writing, enter and search the
building or place where such evidence is located and seize that evidence :
Provided that no authorisation referred to in sub-section (1)
shall be required for search under this sub-section.
(4) The
authority, seizing any record or property under this section, shall, within a
period of thirty days from such seizure, file an application, requesting for
retention of such record or property, before the Adjudicating Authority.
(1) If an
authority, authorised in this behalf by the Central Government by general or
special order, has reason to believe (the reason for such belief to be recorded
in writing) that any person has secreted about his person or in anything under
his possession, ownership or control, any record or proceeds of crime which may
be useful for or relevant to any proceedings under this Act, he may search that
person and seize such record or property which may be useful for or relevant to
any proceedings under this Act.
(2) The
authority, who has been authorised under sub-section (1) shall, immediately
after search and seizure, forward a copy of the reasons so recorded along with
material in his possession, referred to in that sub-section, to the
Adjudicating Authority in a sealed envelope, in the manner, as may be
prescribed and such Adjudicating Authority shall keep such reasons and material
for such period, as may be prescribed.
(3) Where
an authority is about to search any person, he shall, if such person so
requires, take such person within twenty-four hours to the nearest Gazetted
Officer, superior in rank to him, or a Magistrate:
Provided that the period of twenty-four hours shall exclude
the time necessary for the journey undertaken to take such person to the
nearest Gazetted Officer, superior in rank to him, or Magistrate’s Court.
(4) If the
requisition under sub-section (3) is made, the authority shall not detain the
person for more than twenty-four hours prior to taking him before the Gazetted
Officer, superior in rank to him, or the Magistrate referred to in that
sub-section:
Provided that the period of twenty-four hours shall exclude
the time necessary for the journey from the place of detention to the office of
the Gazetted Officer, superior in rank to him, or the Magistrate’s Court.
(5) The
Gazetted Officer or the Magistrate before whom any such person in brought
shall, if he sees no reasonable ground for search, forthwith discharge such
person but otherwise shall direct that search be made.
(6) Before
making the search under sub-section (1) or sub-section (5), the authority shall
call upon two or more persons to attend and witness the search, and the search
shall be made in the presence of such persons.
(7) The
authority shall prepare a list of record or property seized in the course of
the search and obtain the signatures of the witnesses on the list.
(8)
No female shall be searched by any
one except a female.
(9) The
authority shall record the statement of the person searched under sub-section
(1) or sub-section (5) in respect of the records or proceeds of crime found or
seized in the course of the search:
Provided that no search of any person shall
be made unless, in relation to an offence under—
(a) Paragraph
1 of Part A or Paragraph 1 or Paragraph 2 or Paragraph 3 or Paragraph 4 or
Paragraph 5 of Part B of the Schedule, a report has been forwarded to a
Magistrate under section 173 of the Code of Criminal Procedure, 1973 (2 of
1974); or
(b) Paragraph
2 of Part A of the Schedule, a police report or a complaint has been filed for
taking cognizance of an offence by the Special Court constituted under
sub-section (1) of section 36 of the Narcotic Drugs and Psychotropic Substances
Act, 1985 (61 of 1985).
(10) The
authority, seizing any record or property under sub-section (1) shall, within a
period of thirty days from such seizure, file an application requesting for
retention of such record or property, before the Adjudicating Authority.
(1) If the
Director, Deputy Director, Assistant Director or any other officer authorised
in this behalf by the Central Government by general or special order, has on
the basis of material in his possession reason to believe (the reason for such
belief to be recorded in writing) that any person has been guilty of an offence
punishable under this Act, he may arrest such person and shall, as soon as may
be, inform him of the grounds for such arrest.
(2) The
Director, Deputy Director, Assistant Director or any other officer shall,
immediately after arrest of such person under sub-section (1), forward a copy
of the order along with the material in his possession, referred to in that
sub-section, to the Adjudicating Authority in a sealed envelope, in the manner,
as may be prescribed and such Adjudicating Authority shall keep such order and
material for such period, as may be prescribed.
(3) Every
person arrested under sub-section (1) shall, within twenty-four hours, be taken
to a Judicial Magistrate or a Metropolitan Magistrate, as the case may be,
having jurisdiction:
Provided that the period of twenty-four hours shall exclude
the time necessary for the journey from the place of arrest to the Magistrate’s
Court.