A Director appointed under Prevention of Money Laundering Act, 2002 authorises his subordinate to carry out the search of certain records. The subordinate caught a Vehicle and since the Vehicle was locked, he calls the m

CS Professional · Resolution of Corporate Disputes, Non-Compliances & Remedies · PYQS · December 2021
A Director appointed under Prevention of Money Laundering Act, 2002 authorises his subordinate to carry out the search of certain records. The subordinate caught a Vehicle and since the Vehicle was locked, he calls the mechanic to break the locking system to open it. However, he found nothing inside the car. Discuss whether a Director can authorise his subordinate to do such acts, if yes, whether the acts of subordinate are tenable.

Answer & Explanation:

As per Section 17 of Prevention of Money Laundering Act, 2002, where the Director or any other officer not below the rank of Deputy Director authorized by him for the purposes of this section, 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: has committed any act which constitutes money-laundering, or is in possession of any proceeds of crime involved in money-laundering, or is in possession of any records relating to money-laundering, or is in possession of any property related to crime, then, subject to the rules made in this behalf, he may authorize any officer subordinate to him to - 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; break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (a) where the keys thereof are not available; seize any record or property found as a result of such search; place marks of identification on such record or properly, if required or make or cause to be made extracts or copies therefrom; make a note or an inventory of such record or property; 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 In view of the above-mentioned provision, it can be concluded that the act of the subordinate officer is justified and tenable.

Topics: Prevention of Money Laundering Act, 2002

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