SENSITISATION OF MEMBERS OF THE INSTITUTE ON THE PROCEDURE FOR IMPLEMENTATION OF   SECTION 51A OF THE UNLAWFUL ACTIVITIES (PREVENTION) ACT, 1967(UAPA)

Background

Ministry of Home Affairs has requested the Ministry of Corporate Affairs to sensitise the members of ICAI, ICSI and ICWAI to the provisions of Section 51A of UAPA, so that the member would convey to Ministry of Home Affairs, the complete details of any designated individual or entity, which may approach them for entering/investing in Financial Sector and/or immovable property and for any other purpose. A list of designated individuals or entity as provided by Ministry of Home Affairs can be viewed by clicking on the link which is given below:

 http://www.icsi.edu/WebModules/LinksOfWeeks/ListofDesignatedIndividualEntities.pdf

The member shall convey the complete details of such designated individual/entity, as per the procedure specified below:

The objective of UAPA

The objective of The Unlawful Activities (Prevention) Act, 1967 is to provide for the more effective prevention of certain unlawful activities of individuals and associations and for matters connected therewith.

Section 51A of UAPA

The Unlawful Activities (Prevention) Act, 1967 (UAPA) was amended and notified on 31.12.2008, which, inter-alia, inserted Section 51A to the Act. Section 51A reads as under:-

"51A. For the prevention of, and for coping with terrorist activities, the Central Government shall have power to

(a) freeze, seize or attach funds and other financial assets or economic resources held by, on behalf of or at the direction of the individuals or entities Listed in the Schedule to the Order, or any other person engaged in or suspected to be engaged in terrorism;

(b) prohibit any individual or entity from making any funds, financial assets or economic resources or related services available for the benefit of the individuals or entities Listed in the Schedule to the Order or any other person engaged in or suspected to be engaged in terrorism;

(c) prevent the entry into or the transit through India of individuals Listed in the Schedule to the Order or any other person engaged in or suspected to be engaged in terrorism"

The Unlawful Activities (Prevention) Act define "Order" as under:-

"Order" means the Prevention and Suppression of Terrorism (Implementation of Security Council Resolutions) Order, 2007, as may be amended from time to time.

Prevention and Suppression of Terrorism (Implementation of Security Council Resolutions) Order dated July 08, 2009 contains list of designated individuals and entities.

Procedure for implementation

The members are requested to follow the following procedure for implementation of Section 51A of UAPA

1.Particulars of any of  the client matching with the particulars of designated individuals/entities,  the members shall immediately not later than 24 hours from the time of finding out such a client inform full particulars to the to the Joint Secretary (IS.I), Ministry of Home Affairs, at Fax No.011-23092569 and also convey over telephone on 011-23092736. The particulars apart from being sent by post should necessarily be conveyed on e-mail id: jsis@nic.in

2.      The complete details of designated individuals/entities should be informed in the above manner under the following occasions also.

a.       In case designated individual/entity, which may approach them for entering/investing in financial sector/immovable property.

b.      In case members are holding or managing any assets/resources of Designated individuals/entities.

c.       If they have arranged for incorporation, formation/registration of any company, limited liability firm, society, trust and association where any of the Designated individual/entity is a director, Shareholder/member of company/society/association or partner in a firm or settler/trustee or beneficiary of trust or beneficial owner of such juridical person.

d.      If the designated individual/entity approaches any of the member for incorporation, formation/registration of any company, limited liability firm, partnership firm, society, trust and association where any of the Designated individual/entity is a director, Shareholder/member of company/society/association or partner in a firm or settler/trustee or beneficiary of trust or beneficial owner of such juridical person.

If the secretary or any other person holding any managerial position, where any of designated individual/entity is a director and/or shareholder or having beneficial ownership in any such juridical person.