New Delhi: In another verdict defanging the stringent law of Prevention of Money Laundering Act and to protect honest public servants in discharging official duty, Supreme Court on Wednesday ruled that prior sanction of govt is needed to prosecute a govt employee in a money-laundering case and held that Section 197 of Criminal Procedure Code on sanction would be applicable in PMLA cases also. A bench of Justices Abhay S Oka and Augustine George Masih rejected the submission of the Enforcement Directorate that PMLA provisions have an overriding effect over the provisions of the other statutes, including the CrPC on the issue of sanction. Extending the ambit of Section 197(1) to PMLA on money laundering cases, the bench said the object is to protect the public servants from prosecutions and to ensure that they are not prosecuted for anything they do in the discharge of their duties.
"This provision is for the protection of honest and sincere officers. However, the protection is not unqualified. They can be prosecuted with a previous sanction from the appropriate government.
" the bench said while dismissing the plea of the agency. "Section 65 makes the provisions of the CrPC applicable to all proceedings under the PMLA, provided the same are not inconsistent with the provisions contained in the PMLA. The words 'All other proceedings' include a complaint under Section 44 (1)(b) of the PMLA.
We have carefully perused the provisions of the PMLA. We do not find that there is any pro.
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