If from information received or otherwise, a police officer has reason to suspect the commission of an offence which he is empowered to investigate under section 17 and considers that for the purpose of investigation or inquiry into such offence, it is necessary to inspect any bankers' books, then, notwithstanding anything contained in any law for the time being in force , he may inspect any bankers' books in so far as they relate to the accounts of the persons suspected to have committed that offence or of any other person suspected to be holding money on behalf of such person, and take certified copies of the relevant entries therefrom.
Legal Commentary & Landmark Judgments: Section 18
Section 18 of the Prevention of Corruption Act, 1988 confers extraordinary investigative powers on authorized police officers to inspect, scrutinize, and obtain certified copies of bankers' books, ledgers, daybooks, and account statements of suspect public servants and connected persons. Overriding the confidentiality protections of ordinary banking secrecy, it functions as a potent forensic tool to trace money trails, shell company accounts, and benami transactions in corruption inquiries.
If investigating agencies inspect or freeze bank accounts of family members or independent commercial entities without a formal written authorization order from a Superintendent of Police, challenge the action under Section 482 CrPC (Section 528 BNSS) as ultra vires Section 18. In court, verify whether certified bank extracts satisfy the authentication standards under the Bankers' Books Evidence Act, 1891 and Section 65B of the Evidence Act (Section 63 BSA).