Section 18 of PMLA : Section 18: Search Of Persons

Explanation using Example

Imagine a scenario where the Enforcement Directorate (ED), which is an authority authorized by the Central Government, has gathered intelligence that Mr. X, a businessman, is suspected of being involved in money laundering activities. The ED officials believe that Mr. X has hidden financial records and assets derived from criminal activities in his office, which are crucial for their investigation.

An ED officer, based on this intelligence, records the reasons for the suspicion in writing and obtains the necessary authorization to search Mr. X's office. Upon arriving at the office, the officer informs Mr. X that they have the authority to conduct a search for evidence relevant to money laundering.

Mr. X, feeling apprehensive, insists on being taken to a Gazetted Officer or a Magistrate within 24 hours. The ED officials comply with his request and ensure that the time taken for the journey is not included in the 24-hour period.

After being brought before the Gazetted Officer, the officer reviews the written reasons for the search and finds them valid. The search is therefore authorized. The ED officials then call upon two independent witnesses to be present during the search to ensure transparency.

The search leads to the discovery of incriminating financial records and assets that are believed to be proceeds of crime. These items are seized, and a detailed list is prepared, which is signed by the witnesses. Since some of the office staff are women, female officers are called in to conduct their search, adhering to the legal requirement that females are to be searched only by other females.

Mr. X's statement is recorded regarding the items found, and within 30 days of the seizure, the ED files an application to the Adjudicating Authority to retain the seized records and assets for further investigation.