Section 18 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 18 lets an authority authorised by the Central Government search a person who is believed to have secreted records or proceeds of crime. It also lists the safeguards: the person can require to be taken before a Gazetted Officer superior in rank, or a Magistrate, within twenty-four hours; at least two witnesses must attend; a list is prepared; a woman can be searched only by a woman; and a statement is recorded.
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.
An authority authorised by the Central Government, who has recorded reason to believe that a person has secreted records or proceeds of crime useful or relevant to proceedings under the Act, may search that person and seize them. If the person so requires, the authority takes him within twenty-four hours to the nearest superior Gazetted Officer or a Magistrate, who discharges him if there is no reasonable ground for search. Two or more witnesses, a signed list and a statement are required, and the application for retention is due within thirty days.
Sub-section (1): who may search and on what belief
Sub-section (1) applies to "an authority, authorised in this behalf by the Central Government by general or special order". Where he "has reason to believe (the reason for such belief to be recorded in writing) that any person has secreted about his person or in anything under his possession, ownership or control, any record or proceeds of crime which may be useful for or relevant to any proceedings under this Act", he may search that person and seize such record or property which may be useful for or relevant to any proceedings under the Act.
| Element | As printed |
|---|---|
| Who | An authority authorised by the Central Government by general or special order |
| Belief | Reason to believe, reasons recorded in writing |
| About what | A person has secreted about his person, or in anything under his possession, ownership or control, any record or proceeds of crime |
| Test | May be useful for or relevant to any proceedings under the Act |
| Power | Search that person and seize such record or property |
The text shows a row of asterisks after sub-section (1). The footnote says the proviso was omitted by Act 23 of 2019, section 198 (w.e.f. 1-8-2019). The text consulted carries no proviso there, and nothing is stated here about what it provided.
Compare section 17: there, a Director or officer not below Deputy Director authorises a subordinate officer to search a place. Section 18 is about a person and the things under that person's possession, ownership or control. Our article on section 17 explains the search of places.
If you or someone in your organisation has been searched under this section, or told that a search of a person is proposed, legal dispute resolution support can help you read what was done against the safeguards. Our general guide on the powers of the Enforcement Directorate gives a wider overview.
Sub-section (2): the sealed envelope
The authority "shall, immediately after search and seizure, 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 manner and the period are left to rules, and the text consulted gives neither. The Adjudicating Authority is described in our article on sections 6 and 7.
Sub-sections (3) to (5): the right to be taken before an officer or Magistrate
| Sub-section | Provision |
|---|---|
| 18(3) | Where an authority is about to search any person, he shall, if such person so requires, take the person within twenty-four hours to the nearest Gazetted Officer, superior in rank to him, or a Magistrate |
| Proviso to 18(3) | The twenty-four hours exclude the time necessary for the journey to the nearest Gazetted Officer, superior in rank, or the Magistrate's Court |
| 18(4) | If the requisition is made, the authority shall not detain the person for more than twenty-four hours before taking him before the Gazetted Officer or Magistrate |
| Proviso to 18(4) | The twenty-four hours exclude the time necessary for the journey from the place of detention to the office of the Gazetted Officer, or the Magistrate's Court |
| 18(5) | The Gazetted Officer or Magistrate shall, if he sees no reasonable ground for search, forthwith discharge the person; otherwise he shall direct that search be made |
Three points follow.
- The right depends on the person asking. The words are "if such person so requires". The text does not say that the authority must tell the person of the right, and this article does not add such a duty.
- Twenty-four hours, with the journey excluded. The period is twenty-four hours, and the time necessary for the journey is excluded in both provisos.
- Two possible officers. The person is taken to the nearest Gazetted Officer superior in rank to the authority, or to a Magistrate. The Gazetted Officer or Magistrate decides whether there is reasonable ground for search.
Sub-sections (6) to (9): how the search is carried out
- Witnesses (6). Before making the search under sub-section (1) or (5), the authority shall call upon two or more persons to attend and witness the search, and the search shall be made in the presence of such persons.
- List (7). The authority shall prepare a list of record or property seized in the course of the search and obtain the signatures of the witnesses on the list.
- Women (8). "No female shall be searched by any one except a female."
- Statement (9). The authority shall record the statement of the person searched under sub-section (1) or (5) in respect of the records or proceeds of crime found or seized in the course of the search.
The text shows a row of asterisks after sub-section (9). The footnote says the proviso was omitted by Act 21 of 2009 (w.e.f. 1-6-2009), and the text consulted carries no proviso there.
Sub-section (10): application within thirty days
The authority seizing any record or property under sub-section (1) "shall, within a period of thirty days from such seizure, file an application requesting for retention of such record or property, before the Adjudicating Authority". This is the application to which section 8(1) refers when it speaks of applications made under sub-section (10) of section 18. See our article on section 8, and on retention in sections 20 and 21.
Unlike section 17(4), sub-section (10) refers only to seizure under sub-section (1) and to retention; it does not mention freezing, because section 18 has no freezing sub-section.
Safeguards at a glance
| Safeguard | Provision |
|---|---|
| Recorded reasons | 18(1) |
| Authorisation by the Central Government by general or special order | 18(1) |
| Right to be taken before Gazetted Officer or Magistrate | 18(3) to (5) |
| Not detained more than twenty-four hours before that step | 18(4) |
| Two or more witnesses | 18(6) |
| Signed list of items seized | 18(7) |
| Woman searched only by a woman | 18(8) |
| Statement recorded | 18(9) |
| Application for retention within thirty days | 18(10) |
An illustration
The names are invented. An authorised authority records in writing that he has reason to believe Mr Dinesh Kapoor has hidden a bundle of records in a briefcase in his possession. Before searching, he tells Mr Kapoor he is about to search him. Mr Kapoor requires to be taken before a Magistrate. The authority takes him within twenty-four hours, not counting journey time. The Magistrate sees reasonable ground and directs that the search be made. Two witnesses attend, the authority lists the records seized and the witnesses sign, and the authority records Mr Kapoor's statement. Within thirty days, the authority files an application for retention before the Adjudicating Authority.
The text consulted does not say what Mr Kapoor may do if the search is not conducted as the section describes, and this article does not supply a procedure that the Act does not print.
Need help after a personal search?
The safeguards in section 18 are specific, and the papers prepared on the day show whether they were followed. We can review the record of the search and your position with you through legal dispute resolution.
Key takeaways
- An authority authorised by the Central Government by general or special order may search a person on recorded reason to believe that records or proceeds of crime are secreted.
- If the person so requires, he must be taken within twenty-four hours to the nearest superior Gazetted Officer or a Magistrate; journey time is excluded.
- The Gazetted Officer or Magistrate discharges the person if there is no reasonable ground for search.
- Two or more witnesses must attend, a list is prepared and signed, and a woman is searched only by a woman.
- The statement of the person searched is recorded.
- An application for retention must be filed within thirty days of seizure.
Read next
- Section 17: search, seizure and freezing of property
- Section 19: power to arrest
- 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.