Jurisdiction of the PMLA Appellate Tribunal Under the PMLA Act (India)

The Prevention of Money-Laundering Act, 2002 (PMLA) is one of India’s most powerful economic legislations, designed to prevent money laundering and confiscate proceeds of crime. At the heart of the appellate mechanism under this law lies the PMLA Appellate Tribunal, a specialised forum that plays a crucial role in balancing enforcement powers with procedural fairness.

For individuals, companies, reporting entities, and legal professionals, understanding the jurisdiction of the PMLA Appellate Tribunal is critical. This article provides a detailed, India-focused, and practical explanation of the Tribunal’s jurisdiction, powers, limitations, and evolving judicial interpretation, while being fully optimized for the targeted keyword “pmla appellate tribunal.”

Introduction to the PMLA Appellate Tribunal

The PMLA Appellate Tribunal is a statutory appellate body constituted under the Prevention of Money-Laundering Act, 2002. It functions as an independent quasi-judicial authority to hear appeals against specific orders passed by authorities under the PMLA, primarily the Adjudicating Authority and certain orders of the Director of Enforcement.

The Tribunal acts as a vital safeguard against arbitrary attachment, seizure, and confiscation of property under the Act. While the Enforcement Directorate (ED) exercises wide investigative and provisional powers, the Appellate Tribunal ensures that these powers are exercised within the legal framework of the PMLA.

Statutory Framework Governing the Tribunal

Establishment under Section 25 of the PMLA

Section 25 of the PMLA empowers the Central Government to establish an Appellate Tribunal to hear appeals against orders made under the Act. In practice, the Appellate Tribunal constituted under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 also functions as the PMLA Appellate Tribunal.

The Tribunal is headquartered in New Delhi and exercises jurisdiction across the entire territory of India, making it a central appellate authority under the PMLA regime.

Jurisdiction of the PMLA Appellate Tribunal

The jurisdiction of the PMLA Appellate Tribunal can be broadly divided into appellate jurisdiction, subject-matter jurisdiction, and geographical jurisdiction.

Appellate Jurisdiction Under Section 26

Who Can File an Appeal?

Under Section 26 of the PMLA, the following parties can file an appeal before the PMLA Appellate Tribunal:

• Any person aggrieved by an order of the Adjudicating Authority

• The Director of Enforcement

• A reporting entity aggrieved by an order passed by the Director under the Act

This wide definition ensures that individuals, companies, banks, financial institutions, and intermediaries covered under PMLA have a statutory right to challenge adverse orders.

Orders That Can Be Appealed

The Tribunal has jurisdiction to hear appeals against:

• Orders confirming or rejecting provisional attachment of property

• Orders relating to confiscation of property

• Orders imposing penalties on reporting entities

• Other orders passed by the Adjudicating Authority under the PMLA

It is important to note that the Tribunal does not hear criminal trials under PMLA. Prosecution for the offence of money laundering is exclusively within the jurisdiction of Special Courts designated under Section 43 of the Act.

Time Limit for Filing Appeal

An appeal must generally be filed within 45 days from the date on which the order is received. However, the PMLA Appellate Tribunal has the discretion to condone delay if sufficient cause is shown.

Read in details - Decoding the PMLA Appellate Tribunal: Your Rights and Recourse

Powers of the PMLA Appellate Tribunal

Authority to Confirm, Modify, or Set Aside Orders

Under Section 26(4) of the PMLA, the Tribunal may, after hearing the parties:

• Confirm the impugned order

• Modify the order

• Set aside the order

This wide appellate power enables the Tribunal to fully examine the legality and correctness of orders passed by lower authorities.

Procedural Powers Under Section 35

Section 35 of the PMLA lays down the procedure and powers of the Appellate Tribunal. While the Tribunal is not bound by the strict provisions of the Code of Civil Procedure, it is guided by principles of natural justice.

The Tribunal enjoys powers similar to a civil court, including:

• Summoning and enforcing attendance of persons

• Examining witnesses on oath

• Requiring production of documents

• Receiving evidence on affidavits

• Reviewing its own decisions

• Dismissing appeals for default or deciding them ex-parte

• Executing its orders as a decree of a civil court

Proceedings before the Tribunal are deemed judicial proceedings, giving them legal sanctity and enforceability.

Subject-Matter Jurisdiction: What the Tribunal Can and Cannot Decide

What Falls Within Its Jurisdiction

The PMLA Appellate Tribunal has jurisdiction over:

• Appeals arising strictly under the PMLA

• Questions of law and fact relating to attachment, confiscation, and penalties

• Compliance-related disputes involving reporting entities

What Is Outside Its Jurisdiction

The Tribunal does not have jurisdiction to:

• Conduct criminal trials for money laundering offences

• Decide issues unrelated to PMLA proceedings

• Interfere with ongoing investigations unless specifically challenged through an appealable order

Criminal liability under Section 3 of the PMLA is determined solely by Special Courts, not by the Appellate Tribunal.

Geographic Jurisdiction of the PMLA Appellate Tribunal

The jurisdiction of the PMLA Appellate Tribunal extends to the whole of India. Appeals can be filed regardless of where the property is situated or where the Enforcement Directorate initiated proceedings.

This pan-India jurisdiction ensures uniformity in interpretation and application of PMLA provisions.

Power to Remand: A Developing Jurisprudence

One of the most debated aspects of the jurisdiction of the PMLA Appellate Tribunal is whether it has the power to remand matters back to the Adjudicating Authority.

• Some High Courts have taken the view that the Tribunal lacks express statutory authority to remand cases, as such power is not explicitly mentioned in the PMLA.

• Other High Courts have interpreted the phrase “pass such orders as it thinks fit” under Section 26(4) as wide enough to include the power of remand.

This divergence has made remand jurisdiction a live legal issue, and future Supreme Court clarification may bring uniformity.

Bar on Civil Court Jurisdiction

The PMLA expressly bars civil courts from entertaining matters that fall within the jurisdiction of PMLA authorities and the Appellate Tribunal. This ensures that:

• Challenges to attachment or confiscation orders are routed only through the statutory appellate mechanism

• Parallel civil proceedings do not dilute enforcement actions under the Act

Appeal from the Appellate Tribunal to the High Court

An order passed by the PMLA Appellate Tribunal is not final. Under Section 42 of the PMLA, any aggrieved person can file an appeal before the High Court within 60 days, extendable on sufficient cause.

The High Court can examine both questions of law and questions of fact, making it a powerful supervisory forum over Tribunal decisions.

Importance of the PMLA Appellate Tribunal in Practice

The pmla appellate tribunal serves as a crucial checkpoint in India’s anti-money-laundering framework. Its role is particularly significant because:

• PMLA proceedings can result in severe economic consequences, including attachment of property even before conviction

• The Tribunal ensures procedural fairness and judicial scrutiny of ED actions

• It provides an effective remedy short of constitutional courts

For businesses and individuals, timely and well-argued appeals before the Tribunal often make the difference between prolonged attachment and relief.

Conclusion

The jurisdiction of the PMLA Appellate Tribunal under the PMLA Act is wide but well-defined. It functions as a national appellate authority empowered to review orders passed by PMLA authorities, while remaining confined to the statutory boundaries of the Act.

With powers equivalent to a civil court, nationwide jurisdiction, and an essential role in safeguarding rights, the PMLA Appellate Tribunal occupies a central position in India’s anti-money-laundering ecosystem. At the same time, ongoing judicial interpretation—especially regarding remand powers—continues to shape and refine its jurisdiction.

For anyone dealing with PMLA proceedings, understanding the scope and limits of the PMLA Appellate Tribunal is not just useful—it is indispensable.