Section 35 of PMLA : Section 35: Procedure And Powers Of Appellate Tribunal

Explanation using Example

Imagine a scenario where a business owner, Mr. Gupta, is accused of money laundering and the Enforcement Directorate (ED) has attached his properties. Mr. Gupta believes that the attachment is unjust and wants to challenge the ED's decision. He approaches the Appellate Tribunal under the Prevention of Money-Laundering Act, 2002.

In the proceedings, the Appellate Tribunal decides not to follow the Code of Civil Procedure strictly, but instead focuses on ensuring that principles of natural justice are adhered to, giving Mr. Gupta a fair chance to present his case.

The Tribunal summons witnesses who can testify about the legitimacy of Mr. Gupta's business transactions. They also require banks to produce documents related to Mr. Gupta's financial dealings. The evidence is taken on affidavits, and in certain cases, the Tribunal requests public records from government offices to verify the claims made by Mr. Gupta.

During the proceedings, if Mr. Gupta fails to appear without a valid reason, the Tribunal has the authority to dismiss his appeal or decide the matter ex parte. However, if later Mr. Gupta provides a reasonable explanation for his absence, the Tribunal can set aside its earlier order and reinstate the appeal.

If the Tribunal rules in favor of Mr. Gupta, it has the power to execute its order as if it were a decree of a civil court, ensuring that the attached properties are released.

Throughout this process, the Tribunal's proceedings are treated with the same seriousness as those of a court, and any false statements made during the proceedings could lead to penal consequences under the Indian Penal Code.