Introduction
The Prevention of Money Laundering Act (PMLA), 2002 empowers the Adjudicating Authority (AA) with specific powers to ensure fair inquiry, effective examination of evidence, and proper enforcement of the law. Under Section 11, the AA enjoys powers similar to those of a civil court under the Code of Civil Procedure, 1908. These powers ensure that the process of adjudication is carried out with transparency, authority, and accountability.
Powers of the Adjudicating Authority under Section 11
⚖️ 1. Discovery and Inspection
- The AA can order the inspection of any records, documents, or property related to the case.
⚖️ 2. Enforcing Attendance and Examining Witnesses
- The AA can summon any person, including bank officers, financial institution officials, or company representatives, to attend and give evidence under oath.
⚖️ 3. Compelling Production of Records
- Individuals or entities can be directed to produce books, accounts, electronic records, or any relevant documents.
⚖️ 4. Receiving Evidence on Affidavits
- Written statements made under oath (affidavits) can be accepted as evidence.
⚖️ 5. Issuing Commissions
The AA can appoint commissions for the examination of witnesses or documents, especially if they cannot appear in person.
⚖️ 6. Other Prescribed Matters
- The AA may exercise other powers as prescribed by law.
Obligations of Summoned Persons
- Any person summoned must attend in person or through an authorized agent.
- They must truthfully answer questions and produce requested documents.
Judicial Status of Proceedings
Every proceeding under this section is considered a judicial proceeding under the Indian Penal Code (now Bharatiya Nyaya Sanhita, 2023). This includes:
- Section 229 BNS – Punishment for giving false evidence.
- Section 267 BNS – Intentional insult or interruption to a public servant in judicial proceedings.
Illustration / Example
- The Adjudicating Authority issues a summons to a bank manager whose branch received suspicious deposits.
- The manager must appear, either personally or via an authorized officer, and provide the branch records.
- If the manager knowingly provides false information, they could be prosecuted under Section 229 BNS, 2023
Key Point
This provision ensures that the Adjudicating Authority can effectively investigate and verify assets, making the proceedings as enforceable and serious as a civil court trial.
Conclusion
Section 11 of the PMLA provides the Adjudicating Authority with wide-ranging powers to summon, compel, and examine evidence. These powers strengthen the adjudication process, uphold judicial standards, and ensure that proceedings are not merely procedural but binding in nature. By equating the AA’s authority with that of a civil court, the Act fortifies its commitment to preventing and punishing money laundering.
