Sections 65 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.
Five short sections in Chapter X set the legal frame for everything else in the Act. Section 65 says the Code of Criminal Procedure, 1973 applies unless it is inconsistent with the Act. Section 67 bars suits in civil courts and protects acts done in good faith. Section 68 saves notices that have minor defects. Section 69 provides for recovery of fines and penalties. Section 71 gives the Act overriding effect. Section 66 (disclosure of information) is in its own article.
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. If an order or notice under the Act is in your hands, legal consultation on which of these sections bites is a sensible first step.
The Code of Criminal Procedure, 1973 applies to arrest, search and seizure, attachment, confiscation, investigation, prosecution and all other proceedings under the Act so far as it is not inconsistent with the Act (s.65). No civil suit lies to set aside or modify any proceeding or order under the Act, and no suit or prosecution lies against the Government or an officer for good-faith acts (s.67). A notice or order is not invalid merely because of a mistake, defect or omission if it is in substance in conformity with the Act (s.68). An unpaid fine or penalty under section 13 or section 63 can be recovered after six months (s.69). The Act has overriding effect over inconsistent laws (s.71).
Section 65: the Code of Criminal Procedure applies
The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) shall apply, in so far as they are not inconsistent with the provisions of the Act, to:
- arrest;
- search and seizure;
- attachment;
- confiscation;
- investigation;
- prosecution; and
- all other proceedings under the Act.
The test is inconsistency. Where the Act has its own rule, as in section 45 on bail or section 19 on arrest, the Act prevails; where it is silent, the Code fills the gap. The Code is named as printed; check the current procedural law for the corresponding provisions. See also section 46, which applies the Code to Special Court proceedings, in our article on sections 43 and 46-47.
Section 67: bar of suits in civil courts
The section has two limbs.
- No suit shall be brought in any civil court to set aside or modify any proceeding taken or order made under the Act.
- No prosecution, suit or other proceeding shall lie against the Government or any officer of the Government for anything done or intended to be done in good faith under the Act.
The first limb closes the civil court as a forum to undo what the Act's own machinery has done. The second protects the Government and its officers for good-faith acts, including acts only "intended to be done". The word "good faith" is not defined in the section.
Section 41 is a related bar, in different words, on the jurisdiction of civil courts over matters the Director, an Adjudicating Authority or the Appellate Tribunal can determine, and on injunctions; see our article on sections 41 and 42.
Section 68: notice not invalid on certain grounds
No notice, summons, order, document or other proceeding, furnished or made or issued or taken, or purported to have been so furnished, made, issued or taken, in pursuance of any of the provisions of the Act (the text prints "his Act", a slip quoted as printed) shall be invalid, or be deemed to be invalid, merely by reason of any mistake, defect or omission in it, if it is in substance and effect in conformity with or according to the intent and purpose of the Act.
| Question | The section's answer |
|---|---|
| Which documents? | Notice, summons, order, document or other proceeding |
| What kind of fault? | Mistake, defect or omission |
| When is it saved? | If it is in substance and effect in conformity with the Act, or in accordance with its intent and purpose |
| What is not said? | That every defect is excused; the saving depends on the "in substance" test |
The section does not list which defects are minor. It does not say that a notice which is not in substance in conformity with the Act is saved.
Section 69: recovery of fine or penalty
Where any fine or penalty imposed on any person under section 13 or section 63 is not paid within six months from the day of imposition, the Director or any other officer authorised by him in this behalf may proceed to recover the amount from the person in the same manner as prescribed in Schedule II of the Income-tax Act, 1961 (43 of 1961) for the recovery of arrears. He, or any officer authorised by him, shall have all the powers of the Tax Recovery Officer mentioned in that Schedule for the purpose.
The footnote shows that this section was substituted for the earlier section 69 by Act 2 of 2013, s. 27 (w.e.f. 15-2-2013).
What the section covers:
| Point | As printed |
|---|---|
| Which amounts | Fine or penalty under section 13 or section 63 |
| Trigger | Not paid within six months from the day of imposition |
| Who recovers | The Director or any other officer authorised by him |
| Manner | As prescribed in Schedule II of the Income-tax Act, 1961 for the recovery of arrears |
| Powers | All the powers of the Tax Recovery Officer mentioned in that Schedule |
Section 13 penalties on reporting entities are in our article on section 13; section 63 penalties are in our article on sections 62 to 64. The Income-tax Act, 1961 and its Schedule II are quoted as printed; check the current law for the corresponding provision. For tax matters generally, see our income-tax guides.
Section 71: the Act has overriding effect
The provisions of the Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.
This is a one-sentence section with a wide reach. It does not list the laws overridden. It applies only to what is "inconsistent therewith", so a law that can be read together with the Act is not displaced by this section alone. The section says nothing on how any court has applied it, and this article does not either.
How the five sections fit
| Section | Role |
|---|---|
| 65 | Gap-filler: the Code applies where not inconsistent |
| 67 | Shield: civil suits barred; good-faith protection |
| 68 | Saving: defective notices stay valid if in substance in conformity |
| 69 | Collection: unpaid fine or penalty recovered like arrears of tax |
| 71 | Priority: the Act prevails over inconsistent laws |
A worked example
A bank (invented, "Lakshmi Cooperative Bank") is fined under section 13 and does not pay within six months of the day of imposition. Under section 69 the Director or an authorised officer may recover the amount as arrears under Schedule II of the Income-tax Act, 1961, with the powers of the Tax Recovery Officer. The bank argues that the notice leading to the fine misspelt a branch name. Section 68 says a mistake or defect does not by itself invalidate the notice if the notice is in substance and effect in conformity with the Act. The bank then considers a civil suit to set aside the order; section 67 bars it. The forum is the one the Act provides.
Need help understanding which of these sections applies?
Notices with small errors, unpaid penalties and civil-suit questions all arise under these sections, and the answer depends on the exact order in front of you. Our team helps clients through legal consultation, starting with the document and the section under which it was issued.
Key takeaways
- The Code of Criminal Procedure, 1973 applies to proceedings under the Act so far as it is not inconsistent with it.
- Section 67 bars civil suits to set aside or modify proceedings or orders under the Act and protects good-faith acts of the Government and its officers.
- A notice or order is not invalid merely for a mistake, defect or omission if it is in substance in conformity with the Act.
- Unpaid fines or penalties under sections 13 and 63 can be recovered after six months in the manner of Schedule II of the Income-tax Act, 1961.
- The Act has effect notwithstanding anything inconsistent in any other law for the time being in force.
- The text prints no list of defects excused or laws overridden.
Read next
- Sections 41-42 PMLA: civil court bar and appeal to High Court
- Sections 62-64 PMLA: vexatious search, false information and cognizance
- Section 66 PMLA: disclosure of information
- Introduction to PMLA 2002
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.