Sections 6 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 6 provides for the Adjudicating Authority that examines attachments and seizures made under the Act. It says who appoints the authority, who sits on it, how Benches work, how long Members serve and how vacancies and resignations are handled. Section 7 deals with the officers and employees who assist it.
This article reads both sections 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 Central Government appoints an Adjudicating Authority by notification. It consists of a Chairperson and two other Members, who hold office for five years and not after attaining sixty-five years of age. It is not bound by the Code of Civil Procedure, 1908, but is guided by natural justice and can regulate its own procedure. Section 7 provides the staff, under the general superintendence of the Chairperson.
Section 6(1): appointment by notification
The Central Government shall, by notification, appoint an Adjudicating Authority to exercise jurisdiction, powers and authority conferred by or under the Act. The words "an Adjudicating Authority" were substituted for "one or more Adjudicating Authorities" by Act 21 of 2009, section 4 (w.e.f. 1-6-2009), as the footnote prints. The definition in section 2(1)(a) refers back to this sub-section; see our article on section 1 and the authority terms.
What the authority does, in short, is deal with complaints and applications that reach it from provisional attachment under section 5 and from the search and seizure powers. Its adjudication function is set out in section 8. If you have been served a notice by it, legal dispute resolution support can help you read the notice against the text.
Composition and qualifications: section 6(2) to (4)
| Sub-section | Provision |
|---|---|
| 6(2) | An Adjudicating Authority shall consist of a Chairperson and two other Members |
| Proviso to 6(2) | One Member each shall be a person having experience in the field of law, administration, finance or accountancy |
| 6(3)(a) | In the field of law, a person is not qualified unless he is qualified for appointment as District Judge, or has been a member of the Indian Legal Service and has held a post in Grade I of that service |
| 6(3)(b) | In the field of finance, accountancy or administration, a person is not qualified unless he possesses such qualifications as may be prescribed |
| 6(4) | The Central Government shall appoint a Member to be the Chairperson |
The proviso to sub-section (2) is printed as "one Member each shall be a person having experience in the field of law, administration, finance or accountancy". With two Members besides the Chairperson, the text does not spell out which fields are matched to which seats beyond that wording; it is quoted as printed. The qualification for finance, accountancy or administration is left to rules, and this article states none.
Benches: section 6(5) to (7)
Subject to the Act:
- the jurisdiction of the Adjudicating Authority may be exercised by Benches;
- a Bench may be constituted by the Chairperson with one or two Members as the Chairperson may deem fit;
- Benches shall ordinarily sit at New Delhi and at such other places as the Central Government may, in consultation with the Chairperson, by notification, specify;
- the Central Government shall, by notification, specify the areas in relation to which each Bench may exercise jurisdiction.
Sub-section (6) says that, despite sub-section (5), the Chairperson may transfer a Member from one Bench to another. Sub-section (7) says that if at any stage of the hearing it appears to the Chairperson or a Member that the case ought to be heard by a Bench of two Members, the case may be transferred by the Chairperson or referred to him for transfer, to such Bench as the Chairperson may deem fit.
The places and areas are fixed by notification, and no notification is in the text consulted.
Term, age and conditions: section 6(8) and (9)
Section 6(8) says the Chairperson and every Member hold office for a term of five years from the date on which he enters upon his office. The proviso says no Chairperson or other Member shall hold office after attaining the age of sixty-five years. The word "sixty-five" was substituted for "sixty-two" by Act 21 of 2009, section 4 (w.e.f. 1-6-2009); that is history only.
Section 6(9) says the salary and allowances and the other terms and conditions of service of the Member shall be such as may be prescribed, with a proviso that neither the salary and allowances nor the other terms and conditions shall be varied to his disadvantage after appointment. No figure is in the text.
Vacancy, resignation and removal: section 6(10) to (14)
| Sub-section | Provision |
|---|---|
| 6(10) | If a vacancy occurs, other than from temporary absence, in the office of the Chairperson or any other Member, the Central Government shall appoint another person in accordance with the Act; proceedings may continue from the stage at which the vacancy is filled |
| 6(11) | The Chairperson or any other Member may resign by notice in writing under his hand addressed to the Central Government |
| Proviso to 6(11) | Unless permitted by the Central Government to relinquish office sooner, he continues until the expiry of three months from receipt of the notice, or until a duly appointed successor enters upon office, or until the expiry of his term, whichever is the earliest |
| 6(12) | The Chairperson or any other Member shall not be removed except by an order of the Central Government after giving necessary opportunity of hearing |
| 6(13) | On a vacancy in the office of Chairperson by reason of death, resignation or otherwise, the senior-most Member acts as Chairperson until a new Chairperson enters upon office |
| 6(14) | When the Chairperson is unable to discharge his functions owing to absence, illness or any other cause, the senior-most Member discharges them until the Chairperson resumes duties |
Procedure: section 6(15)
The Adjudicating Authority "shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and, subject to the other provisions of this Act, the Adjudicating Authority shall have powers to regulate its own procedure." The reader should check the current procedural law for the corresponding provision of the Code of Civil Procedure, 1908.
Section 11 separately gives the authority certain civil-court powers for specified matters. It is covered in our article on sections 11 and 11A.
Chairperson and "Chairman"
In this section "Chairperson" means the head of the Adjudicating Authority. Section 2(1)(g) defines "Chairperson" as the Chairperson of the Appellate Tribunal. The text uses "Chairperson" for each body in its own place, so the reader should always check which body a section is speaking of. Later sections on the Appellate Tribunal print "Chairman" for that body and are dealt with in our article on sections 36 to 40.
Section 7: staff
Section 7 has three sub-sections.
- The Central Government shall provide each Adjudicating Authority with such officers and employees as that Government may think fit.
- The officers and employees shall discharge their functions under the general superintendence of the Chairperson of the Adjudicating Authority.
- Their salaries and allowances and other conditions of service shall be such as may be prescribed.
Section 7 uses "each Adjudicating Authority" while section 6(1), as substituted, provides for "an Adjudicating Authority". Both are quoted as printed.
An illustration
The names are invented. The Adjudicating Authority at New Delhi has a Chairperson, Mr Rohan Chawla, and two Members. A case reaches the authority and the Chairperson constitutes a Bench of one Member. During the hearing, the Member considers that the matter ought to be heard by two Members and refers it to the Chairperson, who transfers it to a Bench of two Members under section 6(7). Later, the Chairperson is absent owing to illness; under section 6(14), the senior-most Member discharges the functions until he resumes. The staff of the registry act under the Chairperson's general superintendence under section 7(2).
Need help with proceedings before the Adjudicating Authority?
The composition and procedure of the authority decide how a notice is heard and by whom. Our team can review the notice and the documents with you through legal dispute resolution, and our general guide to the Adjudicating Authority under PMLA gives a wider overview.
Key takeaways
- The Central Government appoints an Adjudicating Authority by notification (section 6(1)).
- It has a Chairperson and two other Members; qualifications for the law Member are in section 6(3)(a), and the rest are left to rules.
- Members hold office for five years and not after attaining sixty-five years of age.
- Benches may have one or two Members; they ordinarily sit at New Delhi and at places notified by the Central Government.
- Resignation takes effect after three months unless the Central Government permits earlier, and removal is only by order after a hearing.
- The authority is not bound by the Code of Civil Procedure, 1908, but is guided by natural justice and regulates its own procedure.
- Section 7 gives the authority officers and employees under the general superintendence of the Chairperson.
Read next
- Section 5: provisional attachment of property
- Section 8: adjudication, confirmation of attachment and confiscation
- Section 1 and the authority terms defined
- Adjudicating Authority 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.