Economic, Commercial and Intellectual Property Laws · Prevention of Money Laundering

Authorities and Special Courts under the PMLA 2002

Updated 11 October 2026 · Fact-checked

Under the PMLA 2002, the Central Government appoints authorities (section 49) to enforce the Act. An Adjudicating Authority decides on attachment, and the Appellate Tribunal hears appeals against its orders within 45 days (section 26). Special Courts try the offence of money-laundering and connected scheduled offences (section 44).

Understand Authorities under the Act and Special Courts

The PMLA works through a chain of bodies. Each has a different job. If you keep the jobs apart, most questions become easy.

Authorities (section 49). The Central Government may appoint such persons as it thinks fit to be authorities for the Act. It may also authorise the Director, Additional Director, Joint Director, Deputy Director or Assistant Director to appoint other authorities below the rank of Assistant Director. An authority exercises its powers subject to the conditions and limitations the Central Government imposes.

Helping officers (section 54). Many other officers are empowered and required to assist the authorities. These include Customs and Central Excise officers, income-tax authorities, police, FEMA enforcement officers, SEBI, RBI and IRDA officers, and officers and members of ICAI, ICMAI and ICSI. Officers of any other body corporate set up under a Central or State Act are also covered. The Central Government can add other officers by notification.

Adjudicating Authority and staff (section 7). The Central Government provides each Adjudicating Authority with officers and employees. They work under the general superintendence of the Chairperson of that Authority. Their pay and service conditions are as prescribed.

Appellate Tribunal (sections 25, 26, 35). Section 25 names the Appellate Tribunal constituted under section 12(1) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 as the Tribunal for appeals against orders of the Adjudicating Authority and other authorities. It follows natural justice, not the Code of Civil Procedure, and has civil court powers for specified matters.

Special Courts (section 44). An offence under section 4 and any connected scheduled offence is triable by the Special Court for the area where the offence was committed. The Special Court takes cognizance on a complaint by an authorised authority, without the accused being committed to it for trial.

Key rules to remember

Appointment of authorities: Section 49: Central Government appoints authorities; may authorise Director/Addl./Joint/Deputy/Assistant Director to appoint authorities below the rank of Assistant Director; Powers are exercised subject to conditions and limitations imposed by the Central Government.
Who may appeal (section 26): Director or any person aggrieved by an Adjudicating Authority order → Appellate Tribunal; reporting entity aggrieved by Director's order under section 13(2) → Appellate Tribunal; Two routes: section 26(1) and section 26(2).
Time limit for appeal: 45 days from the date a copy of the order is received; The Tribunal may allow a late appeal after hearing the appellant, if there was sufficient cause.
Disposal target: Endeavour to dispose of the appeal within 6 months from the date of filing; Section 26(6). It is an endeavour, not a rigid bar.
Tribunal's orders on appeal: Confirm, modify or set aside the order appealed against; Only after giving the parties an opportunity of being heard (section 26(4)).
Tribunal's procedure (section 35): Not bound by CPC, 1908; guided by natural justice; regulates its own procedure; Has civil court powers such as summoning witnesses, discovery, affidavits, review and ex parte decisions.
Special Court trial (section 44): Offence under section 4 + connected scheduled offence → Special Court of the area; trial as in a Court of Session; Cognizance on complaint by an authorised authority, without committal.
Death or insolvency (section 72): Legal representatives or official assignee/receiver may file or continue the appeal; Applies to Tribunal appeals and High Court appeals under section 42.

How to solve Authorities under the Act and Special Courts questions

Use this method for any question on authorities, the Tribunal or Special Courts. It keeps your answer in ICSI style: provision, facts, conclusion.

1Identify which body the question is about: authority, Adjudicating Authority, Appellate Tribunal, Special Court or High Court.
2Recall the matching section: 49 for authorities, 54 for helping officers, 25, 26 and 35 for the Tribunal, 44 for Special Courts, 72 for death or insolvency.
3State the rule in plain words, with exact conditions such as who may appeal and the time limit.
4Apply it to the facts. Count days from the date the copy of the order was received, not the date of the order.
5Check for exceptions: sufficient cause for delay, death or insolvency of the appellant, and the 6-month disposal endeavour.
6Write a clear conclusion, for example whether the appeal is maintainable or whether the Special Court has jurisdiction, and cite the section.

Quickest way: Body-Section-Time grid

When to use it: Use it for short-note questions and for case-based questions with limited time.

Write three columns: Body, Section, Key point.
Fill in: Authorities, 49; Assisting officers, 54; Tribunal, 25/26/35; Special Court, 44; Death or insolvency, 72.
Add the numbers: 45 days to appeal, 6 months target for disposal.
Pick the matching row, write the rule, apply it to the facts in two lines, then conclude.

Common mistakes in Authorities under the Act and Special Courts

Counting the 45 days from the date of the order.
Students assume limitation always runs from the order date.
Fix: Section 26(3) runs from the date a copy of the order is received. Quote those words.
Saying the Appellate Tribunal can never admit a late appeal.
The 45-day limit is remembered without the proviso.
Fix: Add that the Tribunal may entertain a late appeal after hearing the appellant if there was sufficient cause.
Saying the Tribunal must follow the Code of Civil Procedure.
Students mix the Tribunal with an ordinary civil court.
Fix: Section 35(1): it is not bound by the CPC and is guided by natural justice. It does have civil court powers for listed matters.
Thinking the Special Court needs a committal order to take cognizance.
Ordinary criminal procedure is applied by habit.
Fix: Under section 44(1)(b) it takes cognizance of the offence under section 3 on a complaint by an authorised authority, without committal.
Treating the 6-month disposal period as a compulsory deadline.
The word 'within six months' is read without 'endeavour'.
Fix: Write that the Tribunal shall make an endeavour to dispose of the appeal within six months of filing.
Believing the appeal ends if the appellant dies.
Students forget section 72.
Fix: Legal representatives, or the official assignee or receiver, may file or continue the appeal in the appellant's place.

Worked examples

Example 1

The Adjudicating Authority passed an order under the PMLA against Mehta Traders Pvt. Ltd. The company received a copy of the order on 10 March. It files an appeal before the Appellate Tribunal on 20 May of the same year, citing the illness of its director. Advise on maintainability.

Show the solution

Provision: under section 26(1), any person aggrieved by an order of the Adjudicating Authority may appeal to the Appellate Tribunal. Section 26(3) requires filing within 45 days from receipt of a copy of the order.
Count the days: 10 March to 31 March is 21 days; April adds 30, making 51 days. The 45-day period has already expired by 24 April.
Filing on 20 May is therefore late. The period runs from 10 March, so the delay is of weeks.
Exception: the proviso to section 26(3) lets the Tribunal entertain a late appeal after giving an opportunity of being heard, if it is satisfied that there was sufficient cause.

Answer: The appeal is beyond 45 days from receipt of the order, so it is not maintainable as of right. Mehta Traders may still succeed if it proves sufficient cause, such as the director's illness, and the Tribunal admits it after hearing the company (section 26(3) proviso).

Example 2

Ravi, whose property was attached under section 8, dies before preferring an appeal to the Appellate Tribunal. His son wants to challenge the attachment. Can he? Also, where will the offence of money-laundering be tried?

Show the solution

Provision: section 72(1)(a) covers a case where property was attached under section 8 and no appeal has been preferred.
If that person dies before preferring an appeal, it is lawful for his legal representatives to prefer an appeal to the Appellate Tribunal in his place.
Section 26 applies so far as may be, so the 45-day limit and the form and fee rules continue to apply to the son's appeal.
Trial: under section 44(1)(a), an offence under section 4 and any connected scheduled offence are triable by the Special Court for the area where the offence was committed.
The Special Court takes cognizance on a complaint by an authorised authority without committal (section 44(1)(b)), and tries the case as a Court of Session would (section 44(1)(d)).

Answer: Yes. Ravi's son, as a legal representative, may file the appeal before the Appellate Tribunal under section 72(1), subject to section 26. The offence of money-laundering is tried by the Special Court of the area where it was committed, under section 44.

Exam tips

Learn section numbers together with the body: 49 authorities, 54 assisting officers, 25/26/35 Tribunal, 44 Special Court, 72 death or insolvency. Cite them in your answer.
In case-based questions, always do the day count from the date of receipt of the order and then check the sufficient cause proviso.
For short notes on the Appellate Tribunal, cover three parts: who can appeal, the time limit, and the Tribunal's powers and orders.
Use ICSI style: provision, facts, conclusion. End with a one-line conclusion that answers the question asked.
Write the Acts as they stand today. Where a section text mentions older laws, state the rule in plain words and avoid relying on old Code names.

Practice questions from Prevention of Money Laundering

Authorities under the Act and Special Courts in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CS ProfessionalSpecial Courts and Offences Tribunal Procedure

Authorities under the Act and Special Courts: frequently asked questions

Who can appeal to the Appellate Tribunal under the PMLA?

The Director or any person aggrieved by an order of the Adjudicating Authority can appeal under section 26(1). A reporting entity aggrieved by the Director's order under section 13(2) can appeal under section 26(2).

What is the time limit to appeal against an Adjudicating Authority order under PMLA?

The appeal must be filed within 45 days from the date a copy of the order is received. The Tribunal may admit a late appeal if the appellant shows sufficient cause and is given a hearing.

What powers does the Appellate Tribunal have?

It is not bound by the Code of Civil Procedure but follows natural justice. For its functions it has civil court powers, such as summoning persons, discovery of documents, evidence on affidavits, reviewing its decisions and deciding matters ex parte (section 35).

Which court tries the offence of money-laundering?

The Special Court for the area where the offence was committed tries an offence under section 4 and any connected scheduled offence. It takes cognizance on a complaint by an authorised authority, without committal, and follows Court of Session trial procedure.

What happens to an appeal if the appellant dies?

Under section 72, legal representatives, or the official assignee or official receiver in case of insolvency, may file the appeal or continue it in place of the appellant. This applies to appeals before the Tribunal and before the High Court.