Section 26 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 26 lets the Director, or any person aggrieved by an order of the Adjudicating Authority, appeal to the Appellate Tribunal. A reporting entity aggrieved by an order of the Director under section 13(2) can appeal too. The appeal must be filed within forty-five days of receipt of the order, in the prescribed form with the prescribed fee, and the Tribunal can condone delay for sufficient cause.
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.
Appeals lie to the Appellate Tribunal against orders of the Adjudicating Authority (by the Director or any person aggrieved) and against orders of the Director under section 13(2) (by a reporting entity). The appeal is filed within forty-five days from receipt of a copy of the order, in such form and with such fee as may be prescribed. The Tribunal may allow a late appeal on sufficient cause and shall endeavour to dispose of it within six months from filing.
Sub-sections (1) and (2): who may appeal
| Sub-section | Appellant | Order appealed against |
|---|---|---|
| 26(1) | The Director, or any person aggrieved | An order made by the Adjudicating Authority under the Act |
| 26(2) | Any reporting entity aggrieved | Any order of the Director made under sub-section (2) of section 13 |
Sub-section (1) opens "Save as otherwise provided in sub-section (3)". Sub-section (2) uses the words "reporting entity", substituted for "banking company, financial institution or intermediary" by Act 2 of 2013, section 20 (w.e.f. 15-2-2013), as the footnote prints.
The first sub-section is not limited to the person who was served with the notice. It says "any person aggrieved". The Director is also named as an appellant against orders of the Adjudicating Authority.
The orders of the Adjudicating Authority are those under section 8 and the other sections explained in our articles on section 8 and sections 20 and 21. The orders of the Director under section 13(2), namely a warning, a direction, a direction to send reports or a monetary penalty, are explained in our article on section 13. The Tribunal is named in section 25.
If you have received an order that you may wish to challenge, and the time is running, legal dispute resolution support can help you read the order against this section.
Sub-section (3): the forty-five days, the form and the fee
"Every appeal preferred under sub-section (1) or sub-section (2) shall be filed within a period of forty-five days from the date on which a copy of the order made by the Adjudicating Authority or Director is received and it shall be in such form and be accompanied by such fee as may be prescribed."
| Item | As printed |
|---|---|
| Period | Forty-five days |
| Starts | From the date on which a copy of the order is received |
| Form | Such form as may be prescribed |
| Fee | Such fee as may be prescribed |
The period runs from the date of receipt of a copy of the order, not from the date of the order. The text consulted does not say who must send the copy or how receipt is proved. The form and fee are left to rules; the text gives no figure and no form, and this article states none.
The proviso: late appeals
"The Appellate Tribunal may, after giving an opportunity of being heard, entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period."
Three features can be read from the words.
- The Tribunal must give a hearing. The proviso says "after giving an opportunity of being heard".
- The test is sufficient cause. The Tribunal must be satisfied that there was sufficient cause for not filing within the forty-five days.
- No outer limit is stated. The proviso does not say how long after the forty-five days an appeal may be entertained, and this article gives no outer limit. Our general guide on limitation periods for suits and appeals is a broader overview of limitation; the specific period for this appeal is the one in the section.
Sub-section (4): what the Tribunal can do
"On receipt of an appeal under sub-section (1) or sub-section (2), the Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against."
The Tribunal gives the parties an opportunity of being heard and then may pass "such orders ... as it thinks fit". The text names three kinds: confirming, modifying or setting aside. The words "as it thinks fit" are not limited further.
Sub-section (5): copies of orders
"The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and to the concerned Adjudicating Authority or the Director, as the case may be."
Sub-section (6): expeditious disposal
"The appeal filed before the Appellate Tribunal under sub-section (1) or sub-section (2) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within six months from the date of filing of the appeal."
The six months is an endeavour, not a mandatory period. The words are "as expeditiously as possible" and "endeavour shall be made". The text does not say what follows if the six months pass, and this article adds nothing.
After the Tribunal
Section 26 ends with the Tribunal. A further appeal to the High Court is provided in section 42, explained in our article on sections 41 and 42. The Tribunal's procedure and powers, including execution of its orders as a decree, are in section 35, explained in our article on sections 25 and 35.
Timeline at a glance
| Step | Provision | Period |
|---|---|---|
| Receipt of a copy of the order | 26(3) | Clock starts |
| Appeal filed in prescribed form with prescribed fee | 26(3) | Within forty-five days |
| Late appeal | Proviso to 26(3) | Tribunal may entertain after hearing, if satisfied of sufficient cause |
| Orders on appeal | 26(4) | Confirm, modify or set aside, after hearing the parties |
| Copy of the Tribunal's order | 26(5) | To the parties and the Adjudicating Authority or Director |
| Disposal | 26(6) | Endeavour to dispose of finally within six months from filing |
An illustration
The names are invented. On 3 March, Orbit Retail Pvt Ltd, a reporting entity, receives a copy of the Director's order under section 13(2)(d) imposing a monetary penalty. The company wishes to appeal under section 26(2). It must file the appeal within forty-five days from the date it received the copy, in the prescribed form with the prescribed fee. If it files late because of a serious illness of its only compliance officer, it may ask the Tribunal to entertain the appeal after the period under the proviso, and the Tribunal decides after hearing whether there was sufficient cause. Once filed, the Tribunal endeavours to dispose of the appeal within six months from filing.
Need help filing or defending an appeal?
The forty-five days run from receipt of the order, and the form and fee are in rules outside the Act. We can review the order, the dates and the grounds with you through legal dispute resolution.
Key takeaways
- The Director or any person aggrieved can appeal against an order of the Adjudicating Authority.
- A reporting entity aggrieved by an order of the Director under section 13(2) can appeal.
- The appeal is filed within forty-five days from receipt of a copy of the order, in the prescribed form with the prescribed fee.
- The Tribunal may entertain a late appeal, after a hearing, if satisfied that there was sufficient cause.
- The Tribunal may confirm, modify or set aside the order appealed against, after hearing the parties.
- It shall endeavour to dispose of the appeal finally within six months from the date of filing.
Read next
- Sections 25 and 35: Appellate Tribunal, its procedure and powers
- Section 8: adjudication, confirmation of attachment and confiscation
- Sections 41 and 42: civil court bar and appeal to High Court
- Appellate Tribunal 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.