Sections 62-64 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.
Three sections in Chapter X guard against misuse of the Act's powers and against non-cooperation with it. Section 62 punishes an authority or officer who searches, detains or arrests without reasons recorded in writing. Section 63 punishes false information that causes an arrest or search, and penalises refusal to answer, to sign a statement or to attend a summons. Section 64 requires the previous sanction of the Central Government before a court takes cognizance of the criminal offences in sections 62 and 63(1).
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. A person who thinks a search was carried out improperly, or who faces a penalty under section 63, can seek legal dispute resolution advice on the record.
An authority or officer who, without reasons recorded in writing, searches a building or place, or detains, searches or arrests a person, is liable to imprisonment up to two years or fine up to fifty thousand rupees or both (section 62). A person who wilfully and maliciously gives false information causing an arrest or search is liable to the same (section 63(1)). Refusing to answer, to sign or to attend a section 50 summons attracts a penalty of not less than five hundred rupees up to ten thousand rupees for each default (section 63(2)). Courts take cognizance of sections 62 and 63(1) only with previous sanction, decided within ninety days.
Section 62: punishment for vexatious search
Any authority or officer exercising powers under the Act or any rules made under it, who, without reasons recorded in writing:
- (a) searches or causes to be searched any building or place; or
- (b) detains or searches or arrests any person,
shall for every such offence be liable on conviction to imprisonment for a term which may extend to two years or fine which may extend to fifty thousand rupees or both.
The elements are:
| Element | As printed |
|---|---|
| Who | Any authority or officer exercising powers under the Act or the rules |
| Act | Searches a building or place, or detains, searches or arrests a person |
| Condition | Without reasons recorded in writing |
| Penalty | Imprisonment up to two years, or fine up to fifty thousand rupees, or both, on conviction |
| Count | "For every such offence" |
The offence turns on the absence of recorded reasons. The Act's search, search-of-persons and arrest provisions require reasons to be recorded in writing, as read in our article on section 19 for arrest; the text of section 62 itself only says that doing these acts without recorded reasons is punishable. It does not say what makes reasons adequate, and this article says nothing on that.
Section 63: false information and failure to give information
Sub-section (1): false information
The text is numbered "(I)" in the copy consulted; it is the first sub-section and is quoted as printed. Any person wilfully and maliciously giving false information and so causing an arrest or a search to be made under the Act shall on conviction be liable to imprisonment for a term which may extend to two years, or with fine which may extend to fifty thousand rupees, or both.
Three conditions are joined: the information must be false, it must be given wilfully and maliciously, and it must cause an arrest or a search. A person who gives wrong information by honest mistake does not fit the words "wilfully and maliciously".
Sub-section (2): refusal and omission
If any person:
| Clause | Default |
|---|---|
| (a) | Being legally bound to state the truth of any matter relating to an offence under section 3, refuses to answer any question put to him by an authority in the exercise of its powers under the Act |
| (b) | Refuses to sign any statement made by him in the course of any proceedings under the Act, which an authority may legally require to sign (the text prints "which an authority may legally require to sign") |
| (c) | To whom a summons is issued under section 50 either to attend to give evidence or produce books of account or other documents at a certain place and time, omits to attend or produce books of account or documents at the place or time (the text prints "a summon") |
he shall pay, by way of penalty, a sum which shall not be less than five hundred rupees but which may extend to ten thousand rupees for each such default or failure. Unlike sub-section (1), this is a monetary penalty and not an imprisonment offence, and the range has a floor as well as a ceiling.
Section 50, the summons provision, is read in our article on section 50.
Sub-section (3): a hearing first
No order under this section shall be passed by an authority referred to in sub-section (2) unless the person on whom the penalty is proposed to be imposed is given an opportunity of being heard in the matter by such authority. The penalty order cannot be made without it.
Sub-section (4): intentional disobedience
Notwithstanding anything in clause (c) of sub-section (2), a person who intentionally disobeys any direction issued under section 50 shall also be liable to be proceeded against under section 174 of the Indian Penal Code (45 of 1860). The footnote shows sub-section (4) inserted by Act 2 of 2013, s. 26 (w.e.f. 15-2-2013). The section of the Indian Penal Code is quoted as printed; check the current penal law for the corresponding provision.
Recovery of an unpaid penalty
Section 69 provides that where any fine or penalty imposed under section 13 or section 63 is not paid within six months from the day of imposition, the Director or an officer authorised by him may proceed to recover it. The mechanics are in our article on sections 65, 67 to 69 and 71.
Section 64: cognizance of offences
Sub-section (1)
No court shall take cognizance of any offence under section 62 or sub-section (1) of section 63 except with the previous sanction of the Central Government. Note what is covered: the offences in section 62 and in section 63(1). The penalty in section 63(2) is imposed by an authority after a hearing and is not a matter of court cognizance. Whether sub-section (4) of section 63 is covered by the sanction requirement is not stated; the section names only section 62 and sub-section (1) of section 63.
Sub-section (2): ninety days
The Central Government shall, by an order, either give sanction or refuse to give sanction within ninety days of the receipt of the request in this behalf. The sub-section requires an order in either case. The text does not say what follows if no order is made within ninety days, and this article does not supply an answer.
The three sections side by side
| Section 62 | Section 63(1) | Section 63(2) | |
|---|---|---|---|
| Who | Authority or officer | Any person | Any person bound to answer, sign or attend |
| What | Search, detention or arrest without recorded reasons | Wilful and malicious false information causing arrest or search | Refusal to answer or sign, omission to attend or produce |
| Consequence | Imprisonment up to two years or fine up to fifty thousand rupees or both, on conviction | Same | Penalty of not less than five hundred rupees up to ten thousand rupees per default |
| Court cognizance | Previous sanction (s.64) | Previous sanction (s.64) | Not applicable: penalty by an authority after a hearing |
A worked example
Mr Sanjay Rao (invented) is summoned under section 50 to bring his company's books to an office on a fixed date and time, and sends only a letter. Under section 63(2)(c) a penalty may be proposed for the omission, but only after he is given an opportunity of being heard (sub-section (3)). If the penalty is imposed within the range printed, the floor is five hundred rupees and the ceiling ten thousand rupees for each default.
In another case, a rival trader (invented) gives an officer false information, wilfully and maliciously, that goods are being held for laundering, and a search follows. Section 63(1) applies; the court cannot take cognizance without the previous sanction of the Central Government (section 64(1)). The Central Government must give or refuse sanction by order within ninety days of receiving the request (section 64(2)).
Need help with a penalty or an improper search?
If you have been asked to answer questions, sign a statement or attend, or you believe a search was made without recorded reasons, the written record is the starting point. Our team assists through legal dispute resolution, working from the notice and the records you hold.
Key takeaways
- Section 62 punishes an authority or officer who searches, detains or arrests without reasons recorded in writing: up to two years or fine up to fifty thousand rupees or both, on conviction.
- Section 63(1) punishes wilful and malicious false information causing an arrest or a search, with the same maximum penalties.
- Section 63(2) imposes a penalty of not less than five hundred rupees up to ten thousand rupees for each default of refusing to answer, refusing to sign or failing to attend or produce.
- No penalty order under section 63 can be passed without an opportunity of being heard.
- Section 63(4) refers intentional disobedience of a section 50 direction to a section of the Indian Penal Code, as printed.
- Courts take cognizance of section 62 and section 63(1) offences only with the previous sanction of the Central Government, to be given or refused within ninety days.
Read next
- Section 50 PMLA: summons, production of documents and evidence
- Sections 65, 67-69 and 71 PMLA: recovery of fine and overriding effect
- Section 19 PMLA: power to arrest
- Penalties under PMLA: imprisonment and fine
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.