Which one of the following is the correct composition of an Adjudicating Authority constituted under the provisions of the Prevention of Money Laundering Act, 2002?

Correct option is B

The correct answer is (b) A Chairperson and two other members.

Explanation

The composition of the Adjudicating Authority is governed by Section 6 of the Prevention of Money Laundering Act (PMLA), 2002.

According to Section 6(2):

• The Adjudicating Authority shall consist of a Chairperson and two other Members.
• Qualifications (Section 6(3)): One Member must have experience in the field of Law, while the other must have experience in Administration, Finance, or Accountancy.
• Appointment (Section 6(4)): The Central Government appoints one of the Members to be the Chairperson.

Information Booster:

The Adjudicating Authority acts as a quasi-judicial body that checks the powers of the Enforcement Directorate (ED). It determines whether the provisional attachment of property is justified.

Key Jurisdictional Rules:

• Benches (Section 6(5)): The Chairperson has the power to constitute Benches. A Bench can consist of either one or two Members.
• Headquarters: The main seat (Principal Bench) of the Adjudicating Authority is located in New Delhi.
• Term of Office (Section 6(8)): The Chairperson and every Member hold office for a term of five years or until they attain the age of sixty-five years, whichever is earlier.