AML India-PMLA Prevention of Money Laundering Act (India) Constitutionality of Section 5(1) PMLA Communication of \"Reasons to Believe\" A sacrosanct right of Noticee, & Access to Material on Record Constitution of India

http://lobis.nic.in/ddir/dhc/SMD/judgement/11-01-2018/SMD11012018CW53202017.pdf

In a bunch of writs decided by the Bench of JUSTICE S. MURALIDHAR JUSTICE I.S. MEHTA of Delhi High court, it has been held that

(i) The second proviso to Section 5(1) PMLA is not violative of Article 14 of the Constitution of India.

(ii) The expression ‘reasons to believe‘ has to meet the safeguards inbuilt in the second proviso to Section 5(1) PMLA read with Section 5(1) PMLA.

(iii) The expression ‘reasons to believe‘ in Section 8(1) PMLA, has to satisfy the requirement of law.

(iv) There has to be a communication of the ‘reasons to believe‘ at every stage to the noticee under Section 8(1) PMLA.

(v) The noticee under Section 8(1) PMLA is entitled access to the materials on record that constituted the basis for ‘reasons to believe‘ subject to redaction in the manner explained hereinbefore, for reasons to be recorded in writing.

(vi) If there is a violation of the legal requirements outlined hereinbefore, the order of the provisional attachment would be rendered illegal.

(vii) There can be single-member benches of the Adjudicating Authority and the Appellate Tribunal under the PMLA. 

 

By
 
Vijay Pal Dalmia, Advocate
 
Supreme Court of India & Delhi High Court
 
vpdalmia@gmail.com
 
Mobile: +919810081079 
 
https://www.linkedin.com/in/vpdalmia/ 
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