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

Meridian Traders Pvt Ltd of Pune is accused of laundering proceeds of a scheduled offence. The Central Government wants a court to try the offence of money-laundering under the PMLA. Which court is designated for this purpose?

The Central Government, after consulting the Chief Justice of the High Court, designates one or more Courts of Session as Special Courts by notification. These courts try the offence of money-laundering. Magistrates or tribunals are not given this function under the Act.

  1. AOne or more Courts of Session designated as Special Courts by notificationCorrect
  2. BAny Metropolitan Magistrate court in the area
  3. CThe National Company Law Tribunal
  4. DA Special Court constituted only by the High Court on its own

Explanation

Under Section 43(1), the Central Government, in consultation with the Chief Justice of the High Court, designates by notification one or more Courts of Session as Special Courts. A Magistrate court or the NCLT is not given this role. The High Court does not constitute the Special Court on its own.

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