Section 17 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 17 allows the Director, or an officer not below the rank of Deputy Director authorised by him, to authorise a subordinate officer to enter and search a building, place, vessel, vehicle or aircraft, break open locks, seize records or property, make extracts and inventories and examine persons on oath. If seizure is not practicable, a freezing order can be made. The authority must send its reasons to the Adjudicating Authority in a sealed envelope and apply for retention within thirty days.
This article reads the section from the consolidated text of the Act consulted (amendments shown up to 1 August 2019). Later amendments, rules and notifications should be checked; nothing after that date is stated here.
The Director, or an officer not below Deputy Director authorised by him, who has recorded reason to believe on information in his possession that a person has committed an act constituting money-laundering, holds proceeds of crime, records relating to money-laundering or property related to crime, may authorise a subordinate officer to search and seize. Where seizure is not practicable, the property can be frozen. The authority must apply to the Adjudicating Authority within thirty days for retention or continuation of freezing.
Sub-section (1): the belief and the authorisation
Under sub-section (1), the person who forms the belief is "the Director or any other officer not below the rank of Deputy Director authorised by him for the purposes of this section". Those words were substituted for "the Director" by Act 21 of 2009, section 7 (w.e.f. 1-6-2009).
The belief must be formed "on the basis of information in his possession", with "the reason for such belief to be recorded in writing", that any person:
| Limb | Belief |
|---|---|
| (i) | Has committed any act which constitutes money-laundering |
| (ii) | Is in possession of any proceeds of crime involved in money-laundering |
| (iii) | Is in possession of any records relating to money-laundering |
| (iv) | Is in possession of any property related to crime |
Limb (iv), and the word "or" at the end of limb (iii), were inserted by Act 2 of 2013, section 14 (w.e.f. 15-2-2013). Limbs (i) to (iv) are joined by "or" so any one is enough.
The officer who holds the belief may then, "subject to the rules made in this behalf", authorise any officer subordinate to him to do the things listed in clauses (a) to (f). The rules are outside the text consulted, and this article states nothing from them. The terms "proceeds of crime" and "money-laundering" are explained in our articles on section 2 and section 3.
If an authorised search is under way at your premises, or you need to understand a freezing order served on you, legal dispute resolution support can help you read the order against the text. Our general guide on the powers of the Enforcement Directorate gives a wider overview.
The powers in clauses (a) to (f)
| Clause | Power |
|---|---|
| (a) | Enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspect that such records or proceeds of crime are kept |
| (b) | Break open the lock of any door, box, locker, safe, almirah or other receptacle where the keys are not available, for exercising the clause (a) powers |
| (c) | Seize any record or property found as a result of the search |
| (d) | Place marks of identification on such record or property, if required, or make or cause to be made extracts or copies from them |
| (e) | Make a note or an inventory of such record or property |
| (f) | Examine on oath any person found to be in possession or control of any record or property, in respect of all matters relevant for the purposes of any investigation under the Act |
The words "property, if required or" in clause (d) were inserted by Act 2 of 2013, section 14 (w.e.f. 15-2-2013). After clause (f) the text shows a row of asterisks; the footnote says the proviso was omitted by Act 23 of 2019, section 197 (w.e.f. 1-8-2019), and the text consulted carries no proviso there.
Clause (a) speaks of a "reason to suspect" for the officer who enters and searches. That is the officer acting on authorisation; the "reason to believe" in sub-section (1) is for the officer who authorises. The two thresholds are in the text as printed.
Sub-section (1A): freezing where seizure is not practicable
Inserted by Act 2 of 2013, section 14 (w.e.f. 15-2-2013), sub-section (1A) says: where it is not practicable to seize such record or property, the officer authorised under sub-section (1) may make an order to freeze such property. The property then "shall not be transferred or otherwise dealt with, except with the prior permission of the officer making such order", and a copy of the order "shall be served on the person concerned".
The proviso says that if, at any time before its confiscation under sub-section (5) or (7) of section 8, or section 58B, or sub-section (2A) of section 60, it becomes practical to seize a frozen property, the officer authorised under sub-section (1) may seize it.
A freezing order is not a seizure; the property stays where it is, but it cannot be transferred or otherwise dealt with without prior permission. The text refers to "such record or property", though the freezing consequences are described only for "property".
Sub-section (2): the sealed envelope
The authority who has been authorised under sub-section (1) "shall, immediately after search and seizure or upon issuance of a freezing order, forward a copy of the reasons so recorded along with material in his possession, referred to in that sub-section, to the Adjudicating Authority in a sealed envelope, in the manner, as may be prescribed", and the Adjudicating Authority keeps them for such period as may be prescribed. The words "or upon issuance of a freezing order" were inserted by Act 2 of 2013, section 14. The footnote prints the date of that insertion as "15-2-3013", which is a slip; the neighbouring footnotes give 15-2-2013, and that is the date used here.
Sub-section (3): search after a survey
Where an authority, "upon information obtained during survey under section 16", is satisfied that any evidence shall be or is likely to be concealed or tampered with, he may, for reasons to be recorded in writing, enter and search the building or place where the evidence is located and seize that evidence. The proviso says no authorisation referred to in sub-section (1) is required for search under this sub-section. The survey is explained in our article on section 16.
This is the link between the two sections: a survey under section 16 can lead to a search under section 17(3) without the authorisation that sub-section (1) requires, but the satisfaction and the recorded reasons are required.
Sub-section (4): application within thirty days
Substituted by Act 2 of 2013, section 14, sub-section (4) says the authority seizing any record or property under sub-section (1), or freezing any record or property under sub-section (1A), "shall, within a period of thirty days from such seizure or freezing, as the case may be, file an application, requesting for retention of such record or property seized under sub-section (1) or for continuation of the order of freezing served under sub-section (1A), before the Adjudicating Authority".
This application is one of the three routes by which a matter reaches the Adjudicating Authority under section 8(1), which refers to applications under section 17(4). See our article on section 8. The period for which retention can then continue is dealt with in sections 20 and 21.
Time and steps at a glance
| Step | Provision | Timing in the text |
|---|---|---|
| Recorded belief | 17(1) | Before authorisation |
| Search, seizure, examination on oath | 17(1)(a) to (f) | By the authorised subordinate officer |
| Freezing where seizure not practicable | 17(1A) | By the authorised officer; copy served on the person concerned |
| Copy of reasons and material to Adjudicating Authority | 17(2) | Immediately after search and seizure, or upon issuance of a freezing order |
| Application for retention or continuation of freezing | 17(4) | Within thirty days of the seizure or freezing |
An illustration
The names are invented. A Deputy Director records in writing that, on information in his possession, he believes Mr Ketan Bose holds records relating to money-laundering at a godown. He authorises a subordinate officer, who enters the godown, breaks open a locked safe because the keys are unavailable, seizes the ledgers, makes an inventory and examines Mr Bose's manager on oath. A vehicle at the godown cannot practicably be seized, and a freezing order is made and a copy is served on Mr Bose. Immediately afterwards, a copy of the recorded reasons and the material goes to the Adjudicating Authority in a sealed envelope, and within thirty days an application for retention and continuation of freezing is filed.
Nothing in the section tells the person searched how to object, and this article does not supply a procedure that the Act does not print.
Need help with a search or a freezing order?
Time starts running when records or property are seized or frozen, and the papers served on you show which power was used. We can review the authorisation, the freezing order and your position with you through legal dispute resolution.
Key takeaways
- The Director, or an officer not below Deputy Director authorised by him, must record the reason for belief before authorising a search.
- The belief can be that a person has committed an act constituting money-laundering, holds proceeds of crime, holds records relating to money-laundering or holds property related to crime.
- Authorised officers may enter and search, break open locks, seize, mark, copy, make inventories and examine on oath.
- Where seizure is not practicable, the property may be frozen; it cannot be dealt with without the prior permission of the officer making the order.
- Reasons and material go to the Adjudicating Authority in a sealed envelope.
- The authority must apply within thirty days for retention or continuation of freezing.
Read next
- Section 16: power of survey
- Section 18: search of persons
- Sections 20 and 21: retention of seized or frozen property and records
- Enforcement Directorate (ED): Powers Under PMLA
Disclaimer: Based on the consolidated text of the Prevention of Money-laundering Act, 2002 published by the Enforcement Directorate, showing amendments up to Act 23 of 2019 (1 August 2019), and on the Department of Revenue consolidated copy of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 listing amendments up to 19 July 2024, as consulted on 2 October 2026. Later amendments, notifications, other rules and regulator directions should be checked. This article is general information, not legal advice; check the official text before acting.