Sections 55-58 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.
Chapter IX of the Act deals with cross-border assistance. Sections 55 to 58 open it: section 55 defines three terms, section 56 lets the Central Government make agreements with other countries, section 57 sets out how a Special Court issues a letter of request for evidence abroad, and section 58 deals with a letter of request received from abroad.
This article reads them as per the consolidated text of the Act consulted (amendments shown up to 1 August 2019). Later amendments and notifications should be checked. When evidence or assets sit across a border, FEMA advisory support alongside the legal team helps the file move on both fronts.
A "contracting State" is any country or place outside India for which the Central Government has made arrangements through a treaty or otherwise. The Central Government may enter agreements with other countries for enforcing the Act and exchanging information. In an investigation or proceeding, an officer applies to a Special Court, which, if satisfied, may issue a letter of request to a court or authority in the contracting State. Evidence so received is deemed to be evidence collected during investigation. A letter of request received from abroad may be forwarded by the Central Government to the Special Court or any authority for execution.
Section 55: three definitions for Chapter IX
"In this Chapter, unless the context otherwise requires":
| Term | Meaning as printed |
|---|---|
| (a) "contracting State" | Any country or place outside India in respect of which arrangements have been made by the Central Government with the Government of such country through a treaty or otherwise |
| (b) "identifying" | Includes establishment of a proof that the property was derived from, or used in the commission of an offence under section 3 |
| (c) "tracing" | Determining the nature, source, disposition, movement, title or ownership of property |
Three things follow from the definitions.
- A country is a "contracting State" only where arrangements exist. The text does not list any country, so whether a given country qualifies depends on the arrangement made.
- The phrase "through a treaty or otherwise" means the arrangement need not be a treaty.
- "Identifying" and "tracing" are the two steps the Director directs under section 60(3) when a letter of request is received. That sub-section is covered in our article on sections 58A-58B and 60-61.
Section 56: agreements with foreign countries
Sub-section (1)
The Central Government may enter into an agreement with the Government of any country outside India for:
- (a) enforcing the provisions of the Act; and
- (b) exchange of information for the prevention of any offence under the Act or under the corresponding law in force in that country, or investigation of cases relating to any offence under the Act.
It may also, by notification in the Official Gazette, make such provisions as may be necessary for implementing the agreement. The text does not contain any agreement or implementing notification.
Sub-section (2): conditions and exceptions
The Central Government may, by notification in the Official Gazette, direct that the application of Chapter IX in relation to a contracting State with which reciprocal arrangements have been made shall be subject to such conditions, exceptions or qualifications as are specified in the notification. In practice, this means the Chapter does not always apply uniformly to every contracting State; the notification for the particular State has to be checked.
Section 57: letter of request to a contracting State
Sub-section (1): who applies and when
The section begins "Notwithstanding anything contained in this Act or the Code of Criminal Procedure, 1973 (2 of 1974)". It applies if, in the course of an investigation into an offence or other proceedings under the Act:
- an application is made to a Special Court by the Investigating Officer or any officer superior in rank to the Investigating Officer;
- the application says that any evidence is required in connection with the investigation or proceedings; and
- the applicant is of the opinion that such evidence may be available in any place in a contracting State.
If the Special Court, on being satisfied that such evidence is required in connection with the investigation or proceedings, so decides, it may issue a letter of request to a court or an authority in the contracting State competent to deal with the request to:
- (i) examine facts and circumstances of the case;
- (ii) take such steps as the Special Court may specify in the letter of request; and
- (iii) forward all the evidence so taken or collected to the Special Court issuing the letter of request.
The word "may" is the Special Court's discretion, but only after it is satisfied that the evidence is required. The Code of Criminal Procedure, 1973 is named as printed; check the current procedural law for the corresponding provision.
Sub-section (2): transmission
The letter of request shall be transmitted in such manner as the Central Government may specify in this behalf. The text prints no manner of transmission.
Sub-section (3): status of the evidence
Every statement recorded or document or thing received under sub-section (1) shall be deemed to be the evidence collected during the course of investigation. This is the bridge from foreign evidence to the Indian file: what comes back is treated as investigation evidence. The section does not print what weight it carries at trial, and this article says nothing on that.
Section 58: assistance to a contracting State
Where a letter of request is received by the Central Government from a court or authority in a contracting State requesting investigation into an offence or proceedings under the Act and forwarding to such court or authority any evidence connected therewith, the Central Government may forward such letter of request to the Special Court or to any authority under the Act as it thinks fit for execution of such request. Execution is in accordance with the provisions of the Act or, as the case may be, any other law for the time being in force.
The direction of travel is the reverse of section 57. Section 57 is India asking abroad; section 58 is a contracting State asking India. The "any authority under the Act" in section 58 is one of the authorities in section 48, covered in our article on sections 48-49 and 51-53. The words "any other law for the time being in force" are quoted as printed; check the current law for the relevant provision.
Outgoing and incoming requests compared
| Point | Section 57 (outgoing) | Section 58 (incoming) |
|---|---|---|
| Who starts it | Investigating Officer or a superior officer applies to a Special Court | A court or authority in a contracting State sends a letter of request to the Central Government |
| Who decides | The Special Court, if satisfied the evidence is required | The Central Government, which may forward it |
| Where it goes | A court or authority in the contracting State | The Special Court or any authority under the Act |
| What follows | Evidence is forwarded to the issuing Special Court and deemed investigation evidence | Execution under the Act or any other law in force |
A worked example
An authority investigating a layering scheme believes bank statements held in a contracting State (invented, "Country X") will show how funds moved. The Investigating Officer's superior applies to the Special Court, which is satisfied that the evidence is required and issues a letter of request to a competent court in Country X, asking it to examine the facts, take stated steps and send the evidence back. The letter is transmitted in the manner the Central Government has specified. When the statements reach the Special Court, they are deemed evidence collected during investigation.
If, in turn, a court in Country X sends India a letter of request asking for an investigation into a related offence, section 58 lets the Central Government forward it to the Special Court or an authority for execution.
For businesses, the practical lesson is that foreign banking and corporate records may be reached through this channel, so cross-border structures need to be documented consistently.
Need help with cross-border evidence or assets?
When a file involves a foreign bank, entity or court, the sequence of requests and the notifications for each country matter. We advise on these questions through FEMA advisory, together with the legal team, starting from the documents you already hold.
Key takeaways
- A "contracting State" is a country or place outside India with which the Central Government has made arrangements through a treaty or otherwise.
- The Central Government may make agreements for enforcing the Act and exchanging information, and notify conditions for a contracting State.
- A Special Court, on an officer's application and on being satisfied, may issue a letter of request to a court or authority in the contracting State.
- Evidence received is deemed to be evidence collected during the course of investigation.
- A letter of request received from a contracting State may be forwarded to the Special Court or any authority for execution.
- The text prints no list of countries, no agreement and no manner of transmission.
Read next
- Section 59 PMLA: reciprocal arrangements for processes and transfer of accused persons
- Sections 58A-58B and 60-61 PMLA: property across borders
- Sections 43 and 46-47 PMLA: Special Courts
- 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.