CHAPTER IX
RECIPROCAL ARRANGEMENT FOR ASSISTANCE IN CERTAIN
MATTERS AND PROCEDURE FOR ATTACHMENT AND
CONFISCATION OF PROPERTY
55. Definitions.-In this Chapter, unless the context otherwise requires,-
(a) "contracting State" means any country or place outside India in
respect of which arrangements have been made by the Central
Government with the Government of such country through a treaty
or otherwise;
(b) "identifying" includes establishment of a proof that the property was
derived from, or used in the commission of an offence under
section 3;
(c) "tracing" means determining the nature, source, disposition,
movement, title or ownership of property.
56. Agreements with foreign countries.-(l) The Central Government may
enter into an agreement with the Government of any country outside India for-
(a) enforcing the provisions of this Act;
(b) exchange of information for the prevention of any offence under this
Act or under the corresponding law in force in that country or
investigation of cases relating to any offence under this Act,
and may, by notification in the Official Gazette, make such provisions as may be
necessary for implementing the agreement.
(2) The Central Government may, by notification in the Official Gazette,
direct that the application of this Chapter in relation to a contracting State with
which reciprocal arrangements have been made, shall be subject to such
conditions, exceptions or qualifications as are specified in the said notification.
57.Letter of request to a contracting State in certain cases.-(l)
Notwithstanding anything contained in this Act or the Code of Criminal
Procedure, 1973 (2 of 1974) if, in the course of an investigation into an offence or
other proceedings under this Act, an application is made to a Special Court by
the Investigating Officer or any officer superior in rank to the Investigating
Officer that any evidence is required in connection with investigation into an
offence or proceedings under this Act and he is of the opinion that such evidence
may be available in any place in a contracting State, and the Special Court, on
being satisfied that such evidence is required in connection with the investigation into an offence or proceedings under this Act, may issue a letter of
request to a court or an authority in the contracting State competent to deal with
such request to-
(i) examine facts and circumstances of the case,
(ii) take such steps as the Special Court may specify in such letter of
request, and
(iii) forward all the evidence so taken or collected to the Special Court
issuing such letter of request.
(2) The letter of request shall be transmitted in such manner as the Central
Government may specify in this behalf.
(3) Every statement recorded or document or thing received under sub-
section (1) shall be deemed to be the evidence collected during the course of
investigation.
58. Assistance to a contracting State in certain cases.-Where a letter of
request is received by the Central Government from a court or authority in a
contracting State requesting for investigation into an offence or proceedings
under this Act and forwarding to such court or authority any evidence connected
therewith, the Central Government may forward such letter of request to the
Special Court or to any authority under the Act as it thinks fit for execution of
such request in accordance with the provisions of this Act or as the case may be,
any other law for the time being in force.
58A. Special Court to release the property.-Where on closure of the
criminal case or conclusion of a trial in a criminal court outside India under the
corresponding law of any other country, such court finds that the offence of
money-laundering has not taken place or the property in India is not involved
in money-laundering, the Special Court may, on an application moved by the
concerned person or the Director, after notice to the other party, order release of
such property to the person entitled to receive it.
58B. Letter of request of a contracting State or authority for
confiscation or release the property.-Where the trial under the corresponding
law of any other country cannot be conducted by reason of the death of the
accused or the accused being declared a proclaimed offender or for any other
reason or having commenced but could not be concluded, the Central Government
shall, on receipt of a letter of request from a court or authority in a contracting
State requesting for confiscation or release of property, as the case may be,
forward the same to the Director to move an application before the Special Court and upon such application the Special Court shall pass appropriate orders
regarding confiscation or release of such property involved in the offence of
money- laundering.
59. Reciprocal arrangements for processes and assistance for transfer
of accused persons.-(l) Where a Special Court, in relation to an offence
punishable under section 4, desires that-
(a) a summons to an accused person, or
(b) a warrant for the arrest of an accused person, or
(c) a summons to any person requiring him to attend and produce a
document or other thing, or to produce a document or other thing, or
to produce it, or
(d) a search-warrant,
issued by it shall be served or executed at any place in any contracting State, it
shall send such summons or warrant in duplicate in such form, to such Court,
Judge or Magistrate through such authorities, as the Central Government may, by
notification, specify in this behalf and that Court, Judge or Magistrate, as the case
may be, shall cause the same to be executed.
(2) Where a Special Court, in relation to an offence punishable under section
4 has received for service or execution-
(a) a summons to an accused person, or
(b) a warrant for the arrest of an accused person, or
(c) a summons to any person requiring him to attend and produce a
document or other thing, or to produce it, or
(d) a search-warrant,
issued by a Court, Judge or Magistrate in a contracting State, it shall cause the
same to be served or executed as if it were a summons or warrant received by
it from another Court in the said territories for service or execution within its
local jurisdiction; and where-
(i) a warrant of arrest has been executed, the person arrested shall, be
dealt with in accordance with the procedure specified under
section 19;
(ii) a search warrant has been executed, the things found in this search
shall, so far as possible be dealt with in accordance with the
procedure specified under sections 17 and 18:
Provided that in a case where a summon or search warrant received from a contracting State has been executed, the documents or other things produced or
things found in the search shall be forwarded to the Court issuing the summons or
search warrant through such authority as the Central Government may, by
notification, specify in this behalf.
(3) Where a person transferred to a contracting State pursuant to sub-section
(2) is a prisoner in India, the Special Court or the Central Government may impose
such conditions as that Court or Government deems fit.
(4) Where the person transferred to India pursuant to sub-section (1) is a
prisoner in a contracting State, the Special Court in India shall ensure that the
conditions subject to which the prisoner is transferred to India are complied with
and such prisoner shall be kept in such custody subject to such conditions as the
Central Government may direct in writing.
60. Attachment, seizure and confiscation, etc., of property in a
contracting State or India.-(l) Where the Director has made an order for
attachment of any property under section 5 or for freezing under sub-section (lA)
of section 17 or where an Adjudicating Authority has made an order relating to a
property under section 8 or where a Special Court has made an order of
confiscation relating to a property under sub-section (5) or sub-section (6) of
section 8, and such property is suspected to be in a contracting State, the Special
Court, on an application by the Director or the Administrator appointed under sub-
section (1) of section 10, as the case may be, may issue a letter of request to a court
or an authority in the contracting State for execution of such order.
(2) Where a letter of request is received by the Central Government from a
court or an authority in a contracting State requesting 1 attachment, seizure,
freezing or confiscation of the property in India, derived or obtained, directly or
indirectly, by any person from the commission of an offence under a
corresponding law committed in that contracting State, the Central Government
may forward such letter of request to the Director, as it thinks fit, for execution in
accordance with the provisions of this Act.
(2A) Where on closure of the criminal case or conclusion of trial in a
criminal court outside India under the corresponding law of any other country,
such court finds that the offence of money-laundering under the corresponding
law of that country has been committed, the Adjudicating Authority shall, on
receipt of an application from the Director for execution of confiscation under
sub-section (2), order, after giving notice to the affected persons, that such
property involved in money-laundering or which has been used for commission
of the offence of money-laundering stand confiscated to the Central
Government.(3) The Director shall, on receipt of a letter of request under section 58 or
section 59, direct any authority under this Act to take all steps necessary for
tracing and identifying such property.
(4) The steps referred to in sub-section (3) may include any inquiry,
investigation or survey in respect of any person, place, property, assets,
documents, books of account in any bank or public financial institutions or any
other relevant matters.
(5) Any inquiry, investigation or survey referred to in sub-section (4) shall
be carried out by an authority mentioned in sub-section (3) in accordance with such
directions issued in accordance with the provisions of this Act.
(6) The provisions of this Act relating to attachment, adjudication,
confiscation and vesting of property in Central Government contained in
Chapter III and survey, searches and seizures contained in Chapter V shall apply to
the property in respect of which letter of request is received from a court or
contracting State for attachment or confiscation of property.
(7) When any property in India is confiscated as a result of execution of a
request from a contracting State in accordance with the provisions of this Act, the
Central Government may either return such property to the requesting State or
compensate that State by disposal of such property on mutually agreed terms
that would take into account deduction for reasonable expenses incurred in
investigation, prosecution or judicial proceedings leading to the return or
disposal of confiscated property.
61. Procedure in respect of letter of request.-Every letter of request,
summons or warrant, received by the Central Government from and every letter
of request, summons or warrant, to be transmitted to a contracting State under
this Chapter shall be transmitted to a contracting State or, as the case may be,
sent to the concerned Court in India and in such form and in such manner as the
Central Government may, by notification, specify in this behalf.
CHAPTER X
MISCELLANEOUS
62. Punishment for vexatious search. – 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 searches any building or place; or
(b) detains or searches or arrests any persons,
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.
63. Punishment for false information or failure to give information, etc.-
(1) Any person wilfully and maliciously giving false information and so causing an
arrest or a search to be made under this Act shall on conviction be liable for
imprisonment for a term which may extend to two years or with fine which may
extend to fifty thousand rupees or both.
(2) If any person,-
(a) being legally bound to state the truth of any matter relating to an
offence under section 3, refuses to answer any question put to him by
an authority in the exercise of its powers under this Act; or
(b) refuses to sign any statement made by him in the course of any
proceedings under this Act, which an authority may legally
require to sign; or
(c) to whom a summon is issued under section 50 either to attend to give
evidence or produce books of account or other documents at a certain
place and time, omits to attend or produce books of account or
documents at the place or time,
he shall pay, by way of penalty, a sum which shall not be less than five hundred
rupees but which may extend to ten thousand rupees for each such default or
failure.
(3) No order under this section shall be passed by an authority referred to in
sub-section (2) unless the person on whom the penalty is proposed to be imposed
is given an opportunity of being heard in the matter by such authority.
(4) Notwithstanding anything contained in clause (c) of sub-section (2), a
person who intentionally disobeys any direction issued under section 50 shall
also be liable to be proceeded against under section 174 of the Indian Penal Code
(45 of 1860). 64. Cognizance of offences.-(l) No court shall take cognizance of any
offence under section 62 or sub-section (1) of section 63 except with the previous
sanction of the Central Government.
(2) The Central Government shall, by an order either give sanction or refuse
to give sanction within ninety days of the receipt of the request in this behalf.
65. Code of Criminal Procedure, 1973 to apply.- The provisions of the
Code of Criminal Procedure, 1973 (2 of 1974) shall apply, insofar as they are not
inconsistent with the provisions of this Act, to arrest, search and seizure,
attachment, confiscation, investigation, prosecution and all other proceedings
under this Act.
66. Disclosure of information.- The Director or any other authority
specified by him by a general or special order in this behalf may furnish or cause
to be furnished to-
(i) any officer, authority or body performing any functions under any law
relating to imposition of any tax, duty or cess or to dealings in foreign
exchange, or prevention of illicit traffic in the narcotic drugs
and psychotropic substances under the Narcotic Drugs and
Psychotropic Substances Act, 1985 (61 of 1985); or
(ii) such other officer, authority or body performing functions under any
other law as the Central Government may, if in its opinion it is
necessary so to do in the public interest, specify, by notification in the
Official Gazette, in this behalf, any information received or obtained
by such Director or any other authority, specified by him in the
performance of their functions under this Act, as may, in the opinion
of the Director or the other authority, so specified by him, be
necessary for the purpose of the officer, authority or body specified
in clause (i) or clause (ii) to perform his or its functions under that
law.
67. Bar of suits in civil courts.-No suit shall be brought in any civil court to
set aside or modify any proceeding taken or order made under this Act and no
prosecution, suit or other proceeding shall lie against the Government or any
officer of the Government for anything done or intended to be done in good faith
under this Act.
68. Notice, etc., not to be invalid on certain grounds.-No notice, summons,
order, document or other proceeding, furnished or made or issued or taken or
purported to have been furnished or made or issued or taken in pursuance of any of the provisions of this Act shall be invalid, or shall be deemed to be invalid merely
by reason of any mistake, defect or omission in such notice, summons, order,
document or other proceeding if such notice, summons, order, document or other
proceeding is in substance and effect in conformity with or according to the intent
and purpose of this Act.
69. Recovery of fine or penalty.-Where any fine or penalty imposed on
any person under section 13 or section 63 is not paid within six months from the
day of imposition of fine or penalty, the Director or any other officer authorised
by him in this behalf may proceed to recover the amount from the said person
in the same manner as prescribed in Schedule II of the Income-tax Act, 1961 (43
of 1961) for the recovery of arrears and he or any officer authorised by him in
this behalf shall have all the powers of the Tax Recovery Officer mentioned in
the said Schedule for the said purpose.
70. Offences by companies.-(l) Where a person committing a
contravention of any of the provisions of this Act or of any rule, direction or
order made thereunder is a company, every person who, at the time the
contravention was committed, was in charge of, and was responsible to the
company, for the conduct of the business of the company as well as the
company, shall be deemed to be guilty of the contravention and shall be liable
to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such
person liable to punishment if he proves that the contravention took place
without his knowledge or that he exercised all due diligence to prevent such
contravention.
(2) Notwithstanding anything contained in sub-section (1), where a
contravention of any of the provisions of this Act or of any rule, direction or
order made thereunder has been committed by a company and it is proved that
the contravention has taken place with the consent or connivance of, or is
attributable to any neglect on the part of any director, manager, secretary or other
officer of any company, such director, manager, secretary or other officer
shall also be deemed to be guilty of the contravention and shall be liable to be
proceeded against and punished accordingly.
Explanation 1.-For the purposes of this section,-
(i) "company" means any body corporate and includes a firm or other
association of individuals; and
(ii) "director", in relation to a firm, means a partner in the firm. Explanation 2.-For the removal of doubts, it is hereby clarified that a
company may be prosecuted, notwithstanding whether the prosecution or
conviction of any legal juridical person shall be contingent on the prosecution or
conviction of any individual.
71. Act to have overriding effect.- The provisions of this Act shall have
effect notwithstanding anything inconsistent therewith contained in any other
law for the time being in force.
72. Continuation of proceedings in the event of death or insolvency.-(l)
Where-
(a) any property of a person has been attached under section 8 and no
appeal against the order attaching such property has been preferred; or
(b) any appeal has been preferred to the Appellate Tribunal, and-
(i) in a case referred to in clause (a) such person dies or is
adjudicated an insolvent before preferring an appeal to the
Appellate Tribunal; or
(ii) in a case referred to in clause (b), such person dies or is adjudicated an
insolvent during the pendency of the appeal,
then, it shall be lawful for the legal representatives of such person or the official
assignee or the official receiver, as the case may be, to prefer an appeal to the
Appellate Tribunal or as the case may be, to continue the appeal before the
Appellate Tribunal, in place of such person and the provisions of section 26 shall,
so far as may be, apply, or continue to apply, to such appeal.
(2) Where-
(a) after passing of a decision or order by the Appellate Tribunal, no
appeal has been preferred to the High Court under section 42; or
(b) any such appeal has been preferred to the High Court, then-
(i) in a case referred to in clause (a), the person entitled to file the appeal
dies or is adjudicated an insolvent before preferring an appeal to the
High Court, or
(ii) in a case referred to in clause (b), the person who had filed the appeal
dies or is adjudicated an insolvent during the pendency of the appeal
before the High Court,
then, it shall be lawful for the legal representatives of such person, or the official
assignee or the official receiver, as the case may be, to prefer an appeal to the High
Court or to continue the appeal before the High Court in place of such person and the provision of section 42 shall, so far as may be, apply or continue to apply to
such appeal.
(3) The powers of the official assignee or the official receiver under sub-
section (1) or sub-section (2) shall be exercised by him subject to the provisions
of the Presidency-towns Insolvency Act, 1909 (3 of 1909) or the Provincial
Insolvency Act, 1920 (5 of 1920), as the case may be.
73. Power to make rules.-(1) The Central Government may, by
notification, make rules for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters, namely:-
(a) the form in which records referred to in this Act may be maintained; (aa)
the manner of provisional attachment of property under sub-section
(1) of section 5
(b) the manner in which the order and the material referred to in sub-
section (2) of section 5 to be maintained;
(c) matters in respect of experience of Members under sub-section (3) of
section 6;
(d) the salaries and allowances payable to the other terms and conditions
of service of Members of the Adjudicating Authority under sub-
section (9) of section 6;
(e) the salaries and allowances payable to and other terms and
conditions of service of the officers and employees of the
Adjudicating Authority under sub-section (3) of section 7;
(ee) the manner of seizing or taking possession of property attached
under section 5 or frozen under sub-section (IA) of section 17 or
under sub-section (4) of section 8;
(f) the manner in which and the conditions subject to which the
properties confiscated may be received and managed under sub-
section (2) of section 10;
(g) the additional matters in respect of which the Adjudicating Authority
may exercise the powers of a civil court under clause (f) of sub-
section (1) of section 11;
(i) the nature and value of transactions and the time within which the
information of transactions under clause (b) of sub-section (1) of
section 12 shall be furnished;
(j) the manner in which the records shall be verified and maintained by Banking Companies, financial institutions and intermediaries under
clause (c) of sub-section (1) of section 12;
(j) the manner and the conditions in which identity of clients shall be
verified by the reporting entities under clause (c) of sub-section (1) of
section 12;
(jj)the manner of identifying beneficial owner, if any, from the clients by
the reporting entities under clause (d) of sub-section (1) of section 12;
(jjj)the period of interval in which the reports are sent by the reporting
entities or any of its employees under clause (c) of sub-section (2) of
section 13;
(k)the procedure and the manner of maintaining and furnishing
information under sub-section (1) of section 12 as required under section
15;
(l)the manner in which the reasons and the material referred to in sub-
section (2) of section 16 shall be maintained;
(m)the rules relating to search and seizure under sub-section (1) of section
17;
(n)the manner in which the reasons and the material referred to in sub-
section (2) of section 17 shall be maintained;
(o)the manner in which the reasons and the material referred to in sub-
section (2) of section 18 shall be maintained;
(p)the manner in which the order and the material referred to in sub-
section (2) of section 19 shall be maintained.
(pp)the manner in which the forwarding of the order for retention or
continuation of freezing of the property and the period of keeping
such order and material under sub-section (2) of section 20;
(q)the manner in which records authenticated outside India may be
received under sub-section (2) of section 22;
(r)the form of appeal and the fee for filing such appeal, under sub-
section (3) of section 26;
(s)the salary and allowances payable to and the other terms and
conditions of service (including tenure of office) of the Chairperson
and other Members of the Appellate Tribunal under section 30;
(t)the salaries and allowances and the conditions of service of the
officers and employees of the Appellate Tribunal under sub-section
(3) of section 34;
(u)the additional matters in respect of which the Appellate Tribunal
may exercise the powers of a civil court under clause (i) of sub section (2) of section 35;
(ua) conditions subject to which a police officer may be authorised to
investigate into an offence under sub-section (lA) of section 45;
(v) the additional matters in respect of which the authorities may
exercise powers of a civil court under clause (f) of sub-section (1) of
section 50;
(w) the rules relating to impounding and custody of records under sub-
section (5) of section 50;
(x) any other matter which is required to be, or may be, prescribed.
74. Rules to be laid before Parliament.-Every rule made under this Act
shall be laid, as soon as may be after it is made, before each House of Parliament,
while it is in session, for a total period of thirty days which may be comprised in
one session or in two or more successive sessions, and if, before the expiry of the
session immediately following the session or the successive sessions aforesaid, both
Houses agree in making any modification in the rule or both Houses agree that the
rule should not be made, the rule shall thereafter have
effect only in such modified form or be of no effect, as the case may be; so,
however, that any such modification or annulment shall be without prejudice to
the validity of anything previously done under that rule.
75. Power to remove difficulties.-(l) If any difficulty arises in giving effect
to the provisions of this Act, the Central Government may, by order, published in
the Official Gazette, make such provisions not inconsistent with the provisions of
this Act as may appear to be necessary for removing the difficulty:
Provided that no order shall be made under this section after the expiry of
two years from the commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be after
it is made, before each House of Parliament.
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