X, an officer of the Enforcement Directorate along with his team entered into a house, belonging to a reputed and rich person, the person present in house objected to it and demands the order of the competent court for s

CS Executive · Economic and Commercial Laws · PYQS · June 2019
X, an officer of the Enforcement Directorate along with his team entered into a house, belonging to a reputed and rich person, the person present in house objected to it and demands the order of the competent court for searching the concerned house, i.e. Search Warrant. But the officer ignores and simply shows his ID. Discuss the powers of Enforcement Directorate and its relevant procedure as laid down in the Prevention of Money Laundering Act, 2002.

Answer & Explanation:

According to Section 17 of the Prevention of Money Laundering Act, 2002, where the Director or any other officer not below the rank of Deputy Director authorised by him 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, or (iv) is in possession of any property related to crime. Then Enforcement Director and his authorized officers has authority to exercise following powers: (i) 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, box, 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 property, if required 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. Preconditions for exercising powers of search and seizure are:- Search can be conducted in relation to the scheduled offence. A report has been forwarded to a Magistrate under section 157 of the Code of Criminal Procedure, 1973, or a complaint has been filed by a person, authorised to investigate the offence mentioned in the Schedule, before a Magistrate or court for taking cognizance of the scheduled offence, as the case may be, or In cases where such report is not required to be forwarded, a similar report of information received or otherwise has been submitted by an officer authorised to investigate a scheduled offence to an officer not be low the rank of Additional Secretary to the Government of India or equivalent being head of the office or Ministry or Department or Unit, as the case may be, or any other officer who may be authorised by the Central Government. The authority, who has been authorised shall, immediately after search and seizure or upon issuance of a freezing order, forward a copy of the reasons so recorded along with material in his possession 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.

Topics: Prevention of Money Laundering Act, 2002

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