One of a relative of an Authorised Officer under Prevention of Money Laundering Act (PMLA), annoyed by his neighbour, passes a false information to the authorized officer that his neighbour is keeping smuggled gold bars.

In terms of Section 17 of Prevention of Money Laundering Act, 2002 (PMLA), where the Director or any other officer not below the rank of Deputy Director authorised 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 is in possession of any proceeds of crime involved in money-laundering then, subject to the rules made in this behalf, he may authorise any officer subordinate to him to enter and search any building, place etc. where he has reason to suspect that such proceeds of crime are kept. In the present case, the Authorized officer, appears to have exercised his power without going to merits and also acted beyond his scope hence, and therefore, he will be liable for punishment under Section 62 of PMLA, if he is proved guilty. Punishment for vexatious search Section 62 of PMLA Any authority or officer exercising powers under this Act or any rules made thereunder, who, without reasons recorded in writing, - (a) searches or causes to be searched any building or place; or (b) detains or searches or arrests any person, shall for every such offence be liable on conviction for imprisonment for a term which may extend to two years or fine which may extend to fifty thousand rupees or both.