India's Prevention of Money Laundering Act, 2002 and Section 45 of PMLA: A Critical Analysis
Lalit Shastri The Prevention of Money Laundering Act, 2002 (PMLA) stands as a law against financial malfeasance, yet its provisions, notably the definitions under Section 2 (u), Section 2 (y), Section 3 relating to Scheduled Offence like misuse of funds attracting Section 447 of the Companies Act, 2013 and Section 45 of PMLA , have stirred a maelstrom of debate regarding the delicate balance between justice and security. Section 447, which even provides for a seven year jail term, can be imposed and prosecution proceedings initiated against someone who may not even be guilty merely on the subjective, biased or vindictive Inspection Report prepared by the Inspecting Officer of the Ministry of Corporate Affairs. The matter could be worst confounded if the proceedings under the Companies Act, 2013 are vitiated at the behest of vested interests to distort the findings and conclusion in the Inspection Report. Once a court takes cognizance of prosecution complaint under Secti