Sections 73-75 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 73 gives the Central Government power to make rules, and its sub-section (2) lists the matters on which rules may be made. That list is the map to every "as may be prescribed" in the Act. Section 74 says rules must be laid before Parliament for a total of thirty days. Section 75 lets the Central Government remove difficulties by order, but only within two years of the commencement of the Act.
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. Because so many details of the Act, such as forms, manner and fees, sit in rules that this text does not contain, a legal consultation on the rules in force for your matter is a sensible step.
The Central Government may, by notification, make rules for carrying out the Act (s.73(1)), and without prejudice to that power, rules may cover the matters listed in s.73(2), clauses (a) to (x), each tied to a section of the Act. Every rule must be laid before each House of Parliament for a total period of thirty days, and it then has effect only in modified form or not at all if both Houses so agree, without prejudice to anything done earlier (s.74). If a difficulty arises in giving effect to the Act, the Central Government may remove it by order, but no order may be made after two years from the commencement of the Act (s.75).
Section 73(1): the general power
The Central Government may, by notification, make rules for carrying out the provisions of the Act. The general power is wide: "for carrying out the provisions of this Act". Sub-section (2) then gives a list "in particular, and without prejudice to the generality of the foregoing power".
The list is therefore illustrative. Rules are not confined to the clauses listed, and clause (x) adds "any other matter which is required to be, or may be, prescribed".
Section 73(2): the matters on which rules may be made
The table below sets each clause of sub-section (2) against the section it serves, as printed. Footnotes are named only where the text prints them.
| Clause | Matter on which rules may provide | Section it serves |
|---|---|---|
| (a) | The form in which records referred to in the Act may be maintained | "Records referred to in this Act" (no single section named) |
| (aa) | The manner of provisional attachment of property | Section 5(1) |
| (b) | The manner in which the order and the material are to be maintained | Section 5(2) |
| (c) | Matters in respect of experience of Members | Section 6(3) |
| (d) | Salaries, allowances and other terms and conditions of service of Members of the Adjudicating Authority | Section 6(9) |
| (e) | Salaries, allowances and other terms of the officers and employees of the Adjudicating Authority | Section 7(3) |
| (ee) | The manner of seizing or taking possession of property attached under section 5 or frozen under section 17(1A) or under section 8(4) | Sections 5, 17(1A), 8(4) |
| (f) | The manner and conditions for receiving and managing confiscated properties | Section 10(2) |
| (g) | Additional matters on which the Adjudicating Authority may exercise civil-court powers | Section 11(1)(f) |
| (h) | Omitted (Act 2 of 2013, s. 29, w.e.f. 15-2-2013) | None (omitted or general) |
| (i) | The nature and value of transactions and the time within which information of transactions is to be furnished | Section 12(1)(b) |
| (j), (jj) | Omitted (Act 14 of 2019, s. 29, w.e.f. 25-07-2019) | None (omitted or general) |
| (jja) | The manner and conditions for authenticating the identity of clients by reporting entities | Section 12AA(1)(a) |
| (jjb) | The manner of identifying the ownership and financial position of the client | Section 12AA(1)(b) |
| (jjc) | Additional steps to record the purpose of the specified transaction and the intended nature of the relationship | Section 12AA(1)(c) |
| (jjd) | Manner of increasing the future monitoring | Section 12AA(3) |
| (jjj) | The period of interval in which reports are sent by reporting entities or any of its employees | Section 13(2)(c) |
| (k) | The procedure and manner of maintaining and furnishing information under section 12(1) as required under section 15 | Sections 12(1), 15 |
| (l) | The manner in which the reasons and material are to be maintained | Section 16(2) |
| (m) | The rules relating to search and seizure | Section 17(1) |
| (n) | The manner in which the reasons and material are to be maintained | Section 17(2) |
| (o) | The manner in which the reasons and material are to be maintained | Section 18(2) |
| (p) | The manner in which the order and material are to be maintained | Section 19(2) |
| (pp) | The manner of forwarding the order for retention or continuation of freezing and the period of keeping such order and material | Section 20(2) |
| (q) | The manner in which records authenticated outside India may be received | Section 22(2) |
| (r) | The form of appeal and the fee for filing such appeal | Section 26(3) |
| (s), (t) | Omitted (Act 28 of 2016, s. 232, w.e.f. 1-6-2016) | None (omitted or general) |
| (u) | Additional matters on which the Appellate Tribunal may exercise civil-court powers | Section 35(2)(i) |
| (ua) | Conditions subject to which a police officer may be authorised to investigate an offence | Section 45(1A) |
| (v) | Additional matters on which the authorities may exercise civil-court powers | Section 50(1)(f) |
| (w) | The rules relating to impounding and custody of records | Section 50(5) |
| (x) | Any other matter which is required to be, or may be, prescribed | None (omitted or general) |
Clauses (jja) to (jjd) are shown by the footnote as inserted by Act 23 of 2019, s. 202 (w.e.f. 1-8-2019); clause (aa) and clause (ee) by Act 2 of 2013, s. 29; clause (ua) is shown as inserted by Act 20 of 2005, s. 8 (w.e.f. 1-7-2005). In clause (i), the words "the nature and value of transactions and the time within which" replaced "the time within which" by Act 2 of 2013, s. 29.
Printing points in the list
- The copy shows square brackets and an asterisk row around clauses (jja) to (jjj) and a closing bracket after clause (jjj); these are the marks of the amending process and are not additional conditions.
- Clause (k) refers to section 12(1) "as required under section 15".
- The list, as printed, contains no clause on the form of an appeal to the High Court under section 42.
What the clauses tell a reader
- Forms, manner and fee are left to rules. The Act itself prints none of the matters in clauses (a), (aa), (b), (jja) to (jjd), (jjj), (l) to (r) and (w). Where this series says the detail is "left to rules", this is the clause behind it.
- Section 12AA (enhanced due diligence) has four clauses (jja) to (jjd) behind it, and the amounts in that section are left to be prescribed.
- Rules on record-keeping and reporting by reporting entities (clauses (a), (i), (jjj), (k)) are the kind of matters dealt with in the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, which this series explains in our article on rules 1 to 8, rule 9 and rules 9A to 11. Other rules under the Act (on attachment, adjudication, appeal, search and so on) are not in the sources used here.
Section 74: rules to be laid before Parliament
Every rule made under the Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days, which may be comprised in one session or in two or more successive sessions. If, before the expiry of the session immediately following the session or the successive sessions aforesaid:
- both Houses agree in making any modification in the rule, or
- both Houses agree that the rule should not be made,
the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be. However, any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
| Step | As printed |
|---|---|
| Laying | As soon as may be after the rule is made, before each House, while in session |
| Period | A total of thirty days, in one session or two or more successive sessions |
| Window for action | Before the expiry of the session immediately following |
| Outcome | The rule has effect only in modified form, or is of no effect |
| Saving | Anything previously done under the rule remains valid |
Section 75: power to remove difficulties
Sub-section (1)
If any difficulty arises in giving effect to the provisions of the Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of the Act as may appear to be necessary for removing the difficulty. The proviso says that no order shall be made under this section after the expiry of two years from the commencement of the Act. The commencement is dealt with in section 1; see our article on section 1.
Sub-section (2)
Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. Unlike section 74, no period of thirty days is printed here.
Two limits are plain from the words: the provisions must be "not inconsistent with the provisions of this Act", and the time limit of two years is fixed by the proviso.
A worked example
A compliance officer at Lotus Finance Ltd (invented) wants to know how often the company must send reports to the authority. Section 13(2)(c) refers to the "period of interval in which the reports are sent", and section 73(2)(jjj) shows that this period is left to rules. The Act does not print the interval; the compliance officer therefore has to read the rules in force. Separately, if a rule is later laid before Parliament under section 74 and both Houses agree to modify it, the rule operates only in modified form from then on, but anything the company did under the rule before that remains valid.
Need help finding the rule behind a section?
When an Act says "as may be prescribed", the working answer lies in the rules, and the rules in force must be checked against this text. Our team traces such questions through legal consultation, starting with the section and the notification you hold.
Key takeaways
- Section 73(1) gives the Central Government a general power to make rules by notification for carrying out the Act.
- Section 73(2) lists the matters on which rules may be made, clause by clause, each tied to a section; it is illustrative, and clause (x) adds any other matter required or permitted to be prescribed.
- Several clauses are shown as omitted: (h), (j), (jj), (s) and (t).
- Clauses (jja) to (jjd) were inserted by Act 23 of 2019 (w.e.f. 1-8-2019) for section 12AA.
- Rules are laid before each House of Parliament for a total of thirty days and may take effect in modified form or not at all, without prejudice to what was done earlier.
- Orders removing difficulties cannot be made after two years from commencement.
Read next
- Section 12AA PMLA: enhanced due diligence for specified transactions
- Section 26 PMLA: appeal to the Appellate Tribunal
- Rules 1 to 8 of the PML Maintenance of Records Rules, 2005
- PMLA 2002 and money-laundering compliance for banks, NBFCs and businesses
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.