Today, On 17th October, The Supreme Court postponed the hearing on pleas seeking a review of its 2022 verdict on the Prevention of Money Laundering Act (PMLA) to November 27. A three-judge bench, led by Justice Surya Kant, was informed that senior advocate Kapil Sibal, representing the petitioners, was unavailable for the session. The petitions aim to challenge aspects of the previous judgment on PMLA provisions.
New Delhi: The Supreme Court on Thursday postponed the hearing to November 27 regarding whether its 2022 ruling, which upheld the Enforcement Directorate’s powers to arrest and seize property under the Prevention of Money Laundering Act, needs reconsideration.
A three-judge bench, led by Justice Surya Kant, was informed by a lawyer that senior advocate Kapil Sibal, representing the petitioners, was unavailable.
The bench remarked,
“This is what happens. When we list, somebody is not available.”
The Enforcement Directorate’s counsel did not oppose the request for adjournment.
The court was hearing multiple petitions seeking a review of the July 27, 2022, judgment delivered by a three-judge bench on specific issues.
In its 2022 decision, the Supreme Court had affirmed the Enforcement Directorate’s authority to arrest, seize property related to money laundering, and conduct searches and seizures under the Prevention of Money Laundering Act (PMLA).
On July 27, 2022, a three-judge bench of the Supreme Court delivered a landmark judgment in Vijay Madanlal Choudhary vs. Union of India, affirming the constitutional validity of various provisions of the PMLA. This verdict was seen as a major victory for the Enforcement Directorate and the Indian government, which has relied on the PMLA to tackle large-scale financial crimes, including money laundering, corruption, and terror financing.
In the 2022 decision, the court upheld critical aspects of the law, including:
- ED’s Powers of Arrest: The ED’s authority to arrest individuals suspected of money laundering without having to file a First Information Report (FIR) was upheld. The court ruled that the ED’s powers under Section 19 of the PMLA, which allow arrests based on the agency’s internal satisfaction, did not violate fundamental rights.
- Attachment of Property: The court also affirmed the ED’s powers under Section 5 of the PMLA, which allows the agency to attach properties believed to be involved in money laundering, even without conviction. The aim is to prevent the accused from enjoying the benefits of proceeds derived from unlawful activities.
- Search and Seizure Powers: The court validated the ED’s authority to conduct searches and seizures without a judicial warrant under Section 17 of the PMLA, emphasizing that such powers are necessary to effectively deal with the complexities of money laundering.
Read Also: Supreme Court: ED Required Special Court Permission to Arrest PMLA Accused
As the Supreme Court prepares to hear the petitions on November 27, 2024, the outcome of the case could reshape the contours of the Prevention of Money Laundering Act. The case presents a critical opportunity for the judiciary to reassess the balance between state powers and individual rights in the context of financial crimes, an issue that continues to generate debate in India.
The decision to reconsider the 2022 PMLA verdict will be closely watched by legal experts, politicians, and civil rights advocates alike, given its wide-ranging impact on law enforcement, governance, and constitutional liberties.