Section 21 of PMLA : Section 21: Retention Of Records

Explanation using Example

Imagine a scenario where a business owner, Mr. Sharma, is suspected of money laundering activities. The authorities, under the Prevention of Money-Laundering Act, 2002, conduct a raid on Mr. Sharma's office under Section 17 and seize various financial records.

Under Section 21(1), the Investigating Officer believes these records are crucial for the ongoing investigation. Therefore, the records are retained for a maximum period of 180 days to facilitate the inquiry.

Mr. Sharma, under Section 21(2), requests and is provided with copies of the seized records so he can continue his business operations and prepare for his defense.

As the 180-day period concludes, the records are due to be returned to Mr. Sharma. However, the Adjudicating Authority, under Section 21(4), decides that the records are still needed for adjudication purposes and extends the retention period under Section 21(3).

Eventually, the case is resolved, and the Adjudicating Authority under Section 21(5) orders the release of the records back to Mr. Sharma as they are no longer required for the case.

However, under Section 21(6), the Director withholds the release of certain records for 90 days post the order because they might be needed for potential appeal proceedings.