Section 50 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 50 gives the Director and the named officers the power to summon any person to give evidence or produce records during an investigation or proceeding under the Act, makes the summoned person bound to attend and to state the truth, treats the proceeding as a judicial proceeding, and allows records produced to be impounded. If you or your company has received a summons, the section tells you what is required of you.
This article reads it as per the consolidated text of the Act consulted (amendments shown up to 1 August 2019). Later amendments and notifications should be checked. Recipients of a summons often start with a legal dispute resolution review of what the summons asks and by when.
Any person whose attendance the Director, Additional Director, Joint Director, Deputy Director or Assistant Director considers necessary can be summoned to give evidence or produce records. The summoned person is bound to attend in person or through an authorised agent, as the officer directs, to state the truth and to produce the documents required. The proceeding is deemed a judicial proceeding. Records produced may be impounded, but an Assistant Director or Deputy Director must record reasons and cannot keep records beyond three months without the previous approval of the Joint Director.
Sub-section (1): the Director's civil-court powers for section 13
For the purposes of section 13, the Director has the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit, in respect of:
| Clause | Matter |
|---|---|
| (a) | discovery and inspection |
| (b) | enforcing the attendance of any person, including any officer of a reporting entity, and examining him on oath |
| (c) | compelling the production of records |
| (d) | receiving evidence on affidavits |
| (e) | issuing commissions for examination of witnesses and documents |
| (f) | any other matter which may be prescribed |
Note the limit: this sub-section is "for the purposes of section 13", the section on inquiry into compliance by a reporting entity and penalties; see our article on section 13. The words "officer of a reporting entity" in clause (b) are shown by the footnote as substituted by Act 2 of 2013, s. 22 (w.e.f. 15-2-2013). The matters under clause (f) are left to rules; section 73(2)(v) lists the rule-making power. No additional matter is printed in the Act.
The Code of Civil Procedure, 1908 is named as printed; check the current procedural law for the corresponding provisions.
Sub-section (2): the summons
The Director, Additional Director, Joint Director, Deputy Director or Assistant Director shall have power to summon any person whose attendance he considers necessary whether to give evidence or to produce any records during the course of any investigation or proceeding under the Act.
Three words in this sub-section carry weight.
- "Any person": the summoned person need not be the accused.
- "he considers necessary": the test is the officer's consideration of necessity; the text does not require a reason in the summons.
- "investigation or proceeding": the summons is tied to an investigation or proceeding under the Act, so it is not a general power.
Sub-section (3): duty of the summoned person
All persons so summoned shall be bound to:
- attend in person or through authorised agents, as such officer may direct;
- state the truth upon any subject respecting which they are examined or make statements; and
- produce such documents as may be required.
The choice between personal attendance and an agent is "as such officer may direct", so it rests with the officer. Failure to attend or to produce documents at the place and time has a consequence in section 63(2)(c) (a penalty of not less than five hundred rupees up to ten thousand rupees for each default, after a hearing) and section 63(4) (intentional disobedience of a direction under section 50 is also open to proceedings under the section of the Indian Penal Code that section 63(4) names). These are explained in our article on sections 62 to 64. Check the current penal law for the corresponding provision.
Sub-section (4): a judicial proceeding
Every proceeding under sub-sections (2) and (3) is deemed to be a judicial proceeding within the meaning of section 193 and section 228 of the Indian Penal Code (45 of 1860). The Act ties the proceeding to those two sections as printed. This article does not describe those sections, and the reader should check the current penal law for the corresponding provisions.
Sub-section (5): impounding and retaining records
Subject to any rules made in this behalf by the Central Government, any officer referred to in sub-section (2) may impound and retain in his custody for such period as he thinks fit any records produced before him in any proceedings under the Act.
The proviso places two conditions on an Assistant Director or a Deputy Director. He shall not:
- (a) impound any records without recording his reasons for so doing; or
- (b) retain in his custody any such records for a period exceeding three months, without obtaining the previous approval of the Joint Director.
The footnote shows that "Joint Director" replaced "Director" in clause (b) by Act 13 of 2018, s. 208 (w.e.f. 19-4-2018). The proviso names only the Assistant Director and the Deputy Director; for a Director, Additional Director or Joint Director the text sets no such condition. Rules on impounding and custody of records are left to rules under section 73(2)(w); they are not in the Act.
Practical steps on receiving a summons
| Step | Why |
|---|---|
| Note the officer's designation and the section cited | Section 50(2) lists the ranks that can summon |
| Check the date, time and place | Section 63(2)(c) refers to omission to attend or produce "at the place or time" |
| Ask whether personal attendance is required | Sub-section (3) says "in person or through authorised agents, as such officer may direct" |
| List the records asked for | Sub-section (3) says "such documents as may be required" |
| Keep a copy of everything produced | Sub-section (5) allows impounding; the proviso requires reasons for an Assistant or Deputy Director |
| Prepare to state the truth | Sub-section (3) makes the duty explicit, and sub-section (4) treats the proceeding as judicial |
A worked example
Veena Textiles LLP (invented) receives a summons from an Assistant Director asking its partner to appear with ledger extracts and bank statements. The partner, Mr Kabir Arora (invented), writes asking whether his authorised accountant may attend. Under sub-section (3) the answer is for the officer to direct. At the hearing the accountant hands over the ledgers; the Assistant Director impounds them. By the proviso he must record reasons, and if he wants to keep them beyond three months, he needs the previous approval of the Joint Director. Mr Arora asks for a receipt and a list of the records so he can track the three months. The Act does not print a receipt rule; the practical record is his own.
If, separately, the Director is conducting an inquiry into a bank's compliance under section 13, sub-section (1) lets the Director use the powers of a civil court for discovery, inspection, attendance and production of records. That sub-section is limited to section 13.
The records requested and the date given in the summons set the working timetable for such a case.
Need help with a summons or production of records?
A summons under this section carries a duty to attend, to state the truth and to produce documents, and there are consequences elsewhere in the Act if it is ignored. Our team assists with preparing for attendance and listing records through legal dispute resolution, working from the summons itself.
Key takeaways
- The Director and four named ranks can summon any person whose attendance they consider necessary during an investigation or proceeding under the Act.
- The summoned person must attend in person or through authorised agents as the officer directs, state the truth and produce the documents required.
- Proceedings under sub-sections (2) and (3) are deemed judicial proceedings within section 193 and section 228 of the Indian Penal Code (45 of 1860), as printed.
- The Director's civil-court powers in sub-section (1) are for the purposes of section 13 only.
- An Assistant or Deputy Director must record reasons to impound records, and needs the Joint Director's previous approval to keep them beyond three months.
- Penalties for non-attendance are in section 63, not in section 50.
Read next
- Section 54 PMLA: officers required to assist in inquiry
- Sections 62-64 PMLA: vexatious search, false information and cognizance
- Section 13 PMLA: powers of the Director to impose fine on a reporting entity
- Enforcement Directorate 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.