Offences by companies
Section 70 of the Prevention of Money-Laundering Act, 2002 deals with offences by companies. Where a person committing a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder is a company, every person who, at the time the contravention was committed, was in charge of and was responsible to the company, for the conduct of the business of the c The Act came into force on 01 Jul 2005.
(1) Where a person committing a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder is a company, every person who, at the time the contravention was committed, was in charge of and was responsible to the company, for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to punishment if he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent such contravention.
(2) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder has been committed by a company and it is proved that the contravention has taken place with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of any company, such director, manager, secretary or other officer shall also be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly.
Explanation 1[1].--For the purposes of this section,--
(i) "company" means any body corporate and includes a firm or other association of individuals; and
(ii) "director", in relation to a firm, means a partner in the firm.
2[Explanation 2.--For the removal of doubts, it is hereby clarified that a company may be prosecuted, notwithstanding whether the prosecution or conviction of any legal juridical person shall be contingent on the prosecution or conviction of any individual.]
Section 70, The Prevention of Money-Laundering Act, 2002 (Act 15 of 2003).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Md Intekhab Alam v. Asst. Director, Directorate of Enforcement
Court's Decision & Legal Precedent
Court relied on Explanation to s.44 clarifying that Special Court jurisdiction in PMLA and scheduled-offence proceedings are independent tracks; predicate quash for partner does not automatically erase Special Court PMLA track for the firm under the Act's bifurcated scheme.
On this section: s.70 Offences by companies — firm/company liability under PMLA can survive independently of quash of proceedings against individual partner/officer
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Arvind Kejriwal vs Directorate Of Enforcement
Court's Decision & Legal Precedent
An arrest under Section 19 PMLA is valid if procedural safeguards are met and the investigative agency possesses material suggesting guilt; political office or election schedules do not provide immunity from investigative processes or entitle an accused to dictate the manner of investigation.
On this section: Extended to political parties as 'associations of individuals' for vicarious liability.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 70
What have the courts held on Section 70 of the Prevention of Money-Laundering Act?
Md Intekhab Alam v. Asst. Director, Directorate of Enforcement (18 Jul 2025) is the leading judgment on this section among those set out below: s.70 Offences by companies — firm/company liability under PMLA can survive independently of quash of proceedings against individual partner/officer. Another 1 judgment on this section is set out below. They run from 2024 to 2025.
How do I find court cases under Section 70 of the Prevention of Money-Laundering Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Pmla 70, section 70 Pmla, section 70 of the Prevention of Money-Laundering Act. People searching for it also type section 70 pmla act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Md Intekhab Alam v. Asst. Director, Directorate of Enforcement (18 Jul 2025).
When did Section 70 of the Prevention of Money-Laundering Act come into force?
Section 70 of the Prevention of Money-Laundering Act, cited as Pmla 70, came into force on 01 Jul 2005, having been enacted on 17 Jan 2003. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions1773 words
- 8. Adjudication975 words
- 6. Adjudicating Authorities, composition, powers, etc781 words
- 73. Power to make rules704 words
- 17. Search and seizure570 words
- 5. Attachment of property involved in money-laundering570 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.