Section 75 of the PMLA: Power to Remove Difficulties

The Prevention of Money Laundering Act (PMLA), 2002, serves as a robust framework to combat money laundering in India, with provisions that aim to prevent, investigate, and prosecute financial crimes. However, like any complex piece of legislation, challenges may arise during its implementation.

To address these challenges, Section 75 of the PMLA empowers the Central Government to remove difficulties that may hinder the enforcement or application of the law.

Overview of Section 75: Power to Remove Difficulties

Section 75 gives the Central Government the power to make provisions for removing difficulties that may emerge in the enforcement of the PMLA.

This is a practical and necessary provision, designed to ensure that the law operates effectively, even when unforeseen obstacles or ambiguities arise in its implementation. This section allows the government to act swiftly and decisively in addressing such challenges.

Key Provisions of Section 75

1. Authority of the Central Government
   • Under Section 75, if any difficulty arises in implementing the provisions of the PMLA, the Central Government is authorized to issue orders that provide a solution to the issue at hand.
   • These orders must align with the general purpose of the PMLA but can provide temporary or procedural adjustments to smoothen the law’s application.
2. Temporary Nature of Orders
   • The section includes a time limitation: no orders under this section can be made after the expiration of two years from the commencement of the Act.
   • This ensures that the government cannot indefinitely use this power and that solutions to difficulties are time-bound and aimed at early resolution.
3. Transparency in the Process
   • Every order issued under Section 75 must be laid before each House of Parliament as soon as possible after it is made.
   • This ensures that the legislative body remains informed of any measures taken to address difficulties, providing a check on the government’s actions and ensuring accountability.
4. Consistency with the PMLA
   • While the Central Government has the power to issue orders, these orders must not be inconsistent with the core provisions of the PMLA. This ensures that any corrective measures or adjustments remain within the intended scope of the Act and do not undermine its objectives.

Importance of Section 75 in the Effective Functioning of the PMLA

1. Ensuring Flexibility in Implementation
   • Legal frameworks are often tested in real-world scenarios, and the PMLA is no exception. Section 75 provides the Central Government with the flexibility to make changes or issue clarifications when necessary.
   • This helps in ensuring that any unanticipated issues or ambiguities in the law do not disrupt the effectiveness of the Act.
2. Addressing Implementation Hurdles
   • Given the complexity and scope of the PMLA, it is expected that some provisions may create challenges in terms of enforcement, understanding, or application. Section 75 allows the government to address these issues without requiring amendments to the entire law, which could be a lengthy process.
3. Promoting Efficient Administration
   • By allowing the Central Government to issue orders for removing difficulties, Section 75 promotes a more efficient administration of the Act.
   • It allows for the swift resolution of any procedural or operational challenges, ensuring that the law continues to function smoothly and that efforts to combat money laundering are not hindered by legal or technical obstacles.
4. Parliamentary Oversight
   • The requirement that every order made under Section 75 be laid before Parliament adds a layer of transparency and oversight. This ensures that any action taken by the government to remove difficulties is subject to scrutiny, fostering accountability in how the law is implemented.

Conclusion

Section 75 of the Prevention of Money Laundering Act (PMLA) is a crucial provision that ensures the law remains flexible and adaptable during its implementation. It empowers the Central Government to take corrective actions when difficulties arise, but also places limits on this power to ensure that it is used responsibly.

By requiring transparency through parliamentary oversight and ensuring that any changes are temporary and consistent with the Act’s objectives, Section 75 strikes a balance between flexibility and accountability.

For individuals or organizations seeking guidance on navigating the complexities of the PMLA, whether in compliance, investigation, or legal matters, it is advisable to consult legal professionals.

Legal Light Consulting is here to assist with your legal needs, ensuring you receive expert advice tailored to your specific circumstances. Contact us today to ensure your rights are protected and to navigate the intricacies of the PMLA effectively.