INDIA Law and Practice Contributed by: Priyank Ladoia, Asif Ahmed, Puneet Dhanoa and Utkarsh Routh, AZB & Partners
• conduct searches and seizures; • requisition books of accounts; and • call for information as necessary for the purposes of the investigation. The income tax authorities can also attach properties as provided in the second schedule of the Income Tax Act for the recovery of tax. Lokpal and Lokayuktas The Lokpal has the powers of superintendence over, and the power to give direction to, the CBI in respect of matters referred by the Lokpal for preliminary inquiry or investigation to the CBI under the Lokpal Act. The CVC is also mandated to send a statement, at such interval as the Lokpal may direct in respect of action taken on complaints referred to it. The Lokpal also has the powers to direct searches and seizures by any agency, including the CBI, if the Lok - pal has reason to believe that any document which, in its opinion, shall be useful for or relevant to any investigation under the Act is secreted in any place. For the purpose of any preliminary inquiry, the Inquiry Wing of the Lokpal has all the powers of a civil court, under the CPC. The Lokpal may, for the purpose of conducting any preliminary inquiry or investigation, utilise the services of any officer, organisation or inves - tigating agency of the Central Government or of any state government, as the case may be. Where the Lokpal, based on recorded reasons and available material, believes that a person accused of corruption possesses proceeds of corruption likely to be concealed or transferred to frustrate proceed - ings, it may, by written order, provisionally attach such property for a period not exceeding 90 days from the date of the order, and shall forthwith forward the order and supporting material to the Special Court, which may, upon consideration, extend the order of attach - ment for such period as it deems fit. 7.3 Jurisdictional Reach of Enforcement Bodies The BNS has extraterritorial jurisdiction. Sections 3 and 4 of the BNS, along with Section 208 of the BNSS, recognise extraterritorial application of Indian criminal law. An Indian citizen is subject to Indian criminal law’s
extraterritorial reach as they can even be punished for offences committed outside India. Similarly, a person outside India can also be punished for an offence in India under the BNS. The scope has been further expanded under the BNS through Section 48, which states that abetment of an offence from outside India for commission of an offence in India is also liable to be punished. The CBI and the police authorities derive powers from the BNS, which allows these authorities to issue letters of request and service of summons under various MLATs. Being members of Interpol, the Indian authorities can issue a Red Notice against an accused. A Red Notice is a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender or similar legal action. The PCA does not have extraterritorial jurisdiction. However, considering the multiple MLATs, interna - tional conventions and international organisations that India is a party to, the courts in India can serve summons on foreign entities and foreign nationals. India also has multiple extradition treaties that allow persons/officials in foreign jurisdictions to be extra - dited to India for trial, especially in politically sensitive cases. In this regard, the Black Money Act specifically deals with foreign undisclosed income and specifies that an undisclosed asset located outside India shall be charged to tax on its value in the previous year in which such an asset comes to the notice of the assessing officer. Where an assessee holds property abroad, Section 38 of the Black Money Act empowers the tax recovery officer to forward a recovery certificate to the board for collection of tax arrears under agreements made by the Central Government or specified associations with foreign countries or territories under Section 90 or 90A of the Income Tax Act, or under Section 73 (1), (2) or (4) of the Act. The PMLA grants the ED broad powers in foreign mat - ters, defining an “offence with cross-border implica - tions” as:
152 CHAMBERS.COM
Powered by FlippingBook