Supreme Court Defers Review of PMLA Judgement to September 18

The Supreme Court has deferred the hearing on a review petition challenging the provisions of the Prevention of Money Laundering Act (PMLA) to September 18. The delay is due to the absence of one judge from the three-judge bench. Arguing for the petitioner, Senior Advocate Kapil Sibal contended that the judgment needs reconsideration.

The Supreme Court on Wednesday postponed the hearing of a review petition challenging its earlier judgment that upheld various provisions of the Prevention of Money Laundering Act (PMLA). Justices Surya Kant and Ujjal Bhuyan adjourned the matter until September 18, citing the absence of one of the three-judge bench members.

During the last hearing, Senior Advocate Kapil Sibal, representing the petitioner, argued that the previous judgment needs reconsideration. The Supreme Court had previously identified two issues requiring prima facie consideration. The court assured that each side would have ample opportunity to present their arguments and address the legal issues involved.

Solicitor General Tushar Mehta opposed the re-evaluation of the judgment, stating that the PMLA aligns with the directives of the Financial Action Task Force (FATF) and is not a standalone offence. The court emphasized the serious nature of money laundering and agreed to an open court hearing on the review petition, initially filed by Congress MP Karti Chidambaram and other prominent figures.

On July 27, 2022, the Supreme Court upheld the validity of several PMLA provisions, empowering the Directorate of Enforcement to make arrests, conduct searches, and seize assets. The court ruled that the Enforcement Case Information Report (ECIR) does not equate to a First Information Report (FIR), and ED officers are not police officers.

In March 2022, the court reserved its order on multiple petitions challenging certain PMLA provisions. Petitioners, including Karti Chidambaram and former Jammu and Kashmir Chief Minister Mehbooba Mufti, highlighted issues like the lack of a clear procedure for initiating investigations and the non-disclosure of ECIR contents to the accused.

The Centre defended the PMLA provisions, asserting that the law aims to prevent money laundering, regulate related activities, and confiscate proceeds of crime. It emphasized that the PMLA is essential for adhering to international treaties and global best practices in the fight against money laundering. The Directorate of Enforcement is currently investigating approximately 4,700 cases under the PMLA.

(With inputs from agencies.)