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    Question

    A person has been arrested and a case has been

    registered under Section 4 of PMLA (money laundering). The allegations involve concealment of the source of income and investing it in various properties. Under the PMLA, which statements regarding the burden of proof are correct? Statement 1: The prosecution must prove beyond reasonable doubt that the property is proceeds of crime. Statement 2: Once the prosecution establishes that property was not derived from legitimate known sources, a reverse burden is triggered, and the person must explain the source. Statement 3: The person can remain silent and cannot be compelled to explain the source of property. Statement 4: Even if the person proves legitimate source, the property can still be confiscated if proceeds of crime involvement is suspected. Which statements are correct?
    A Statements 1 and 3 only Correct Answer Incorrect Answer
    B Statements 2 and 4 only Correct Answer Incorrect Answer
    C Statements 1 and 4 only Correct Answer Incorrect Answer
    D Statements 2 only Correct Answer Incorrect Answer
    E Statements 1, 2, and 3 only Correct Answer Incorrect Answer

    Solution

    Section 24 of PMLA provides a reverse burdenтАФonce the prosecution proves property is not derived from known sources, the burden shifts to the person to prove its source. Statement 2 is correct. Statement 1 is incorrect because PMLA creates a reverse burden; the standard differs from ordinary criminal law. Statement 3 is incorrect because Section 24 compels explanation. Statement 4 is incorrect because if legitimate source is proven, property cannot be confiscated under PMLA. Statement 2 alone is correct.

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