The Supreme Court of India is set to hear review petitions on August 28, challenging its 2022 decision that upheld the constitutionality of the Prevention of Money Laundering Act (PMLA). The review petitions question the correctness of the Court's ruling in the landmark case of Vijay Madanlal Choudhary v. Union of India.
A Bench comprising Justices Surya Kant, CT Ravikumar, and Ujjal Bhuyan will oversee the hearings. Today, the Bench directed the parties to provide common compilations of pleadings and scheduled the review hearings to commence around 11 AM on August 28. The petitions aim to reconsider the July 2022 verdict, which upheld several provisions of the PMLA despite substantial criticism.
The 2022 ruling was delivered by a three-judge Bench, which included Justices AM Khanwilkar, Dinesh Maheshwari, and CT Ravikumar. Following the judgment, two of the three judges have retired, leaving Justice CT Ravikumar as the only current member from the original Bench who will hear the review petitions.
The case at hand has been brought forward by several petitioners, including Congress leader Karti Chidambaram, who have expressed dissatisfaction with the Court's decision. In August 2022, the Supreme Court had issued notice to the Central Government regarding these review petitions.
Solicitor General (SG) Tushar Mehta requested additional time to prepare, stating he was only recently informed of the hearing schedule. He argued that there were no errors in the July 2022 judgment. The Court, initially proposing to hear the matter on August 21, has agreed to a postponement until August 28 at SG Mehta’s request.
In the July 2022 ruling, the Supreme Court upheld the validity of several PMLA provisions, including those related to the definition of money laundering, attachment of property, search and seizure, and the reverse burden of proof. The Court also ruled that the supply of the Enforcement Case Information Report (ECIR) is not mandatory, as it is an internal document and not equivalent to a First Information Report (FIR).
The 2022 decision reversed a previous verdict from November 2017, where a Division Bench had struck down Section 45(1) of the PMLA for imposing additional bail conditions. This earlier ruling in Nikesh Tarachand Shah v. Union of India was overturned by the July 2022 Bench.
The upcoming review hearings will revisit these contentious issues and could potentially alter the current legal landscape regarding the PMLA. The Supreme Court’s decision will be closely watched, given the significant impact it may have on the enforcement of anti-money laundering regulations in India.
TAGS: Supreme Court PMLA Review Solicitor General Enforcement Case Information Report (ECIR) Money Laundering
