The Supreme Court of India has expressed its intention to re-examine its 2022 judgment, which upheld the Enforcement Directorate’s (ED) powers concerning arrests, property attachments, and search and seizure operations under the Prevention of Money Laundering Act (PMLA). However, the apex court clarified that it would focus solely on the ‘legal issues’ and refrain from delving into individual cases.
The decision was announced by a special three-judge bench, led by Justice Sanjay Kishan Kaul, during the hearing of an interlocutory application. The application was filed by an individual who had been summoned by the ED in connection with a money laundering case. This case pertains to alleged extortion activities related to illegal levies on coal transportation and the production of steel and iron pellets.
Justice Kaul, along with Justices Sanjiv Khanna and Bela M Trivedi, stated,
“We are dealing with a larger issue which is apparent from the order passed on October 18. It is not possible for the special bench to deal with all interlocutory matters arising from these proceedings.”
The court also addressed allegations of tampering with judicial records. An affidavit presented to the court highlighted a potential case of forgery, suggesting that an advocate-on-record’s (AoR) name was inserted to imply that he was informed or present during certain proceedings. The affidavit emphasized,
“This prima facie appears to be a case of tampering with the judicial record… then it amounts to forgery and requires to be inquired into and viewed seriously.”
Furthermore, the court took note of allegations suggesting ‘forum shopping’ by the petitioner. The affidavit alleged that the petitioner sought to present the matter before a different bench, even though another bench had already reviewed the same ECIR and decided not to intervene.
The affidavit also shed light on the broader investigation under PMLA, revealing the involvement of several individuals, including senior bureaucrats, state officials, and politically exposed persons closely associated with the current political administration in the state of Chhattisgarh.
Last year, the Supreme Court had firmly upheld the ED’s powers under the PMLA, endorsing its authority to conduct arrests, attach properties involved in money laundering, and execute search and seizure operations.
This recent development underscores the Supreme Court’s commitment to ensuring that the legal framework surrounding money laundering is robust and effective, while also emphasizing the importance of avoiding potential pitfalls in individual cases.
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