The Supreme Court on Tuesday postponed to July 31 the hearing of a series of review petitions challenging its 2022 judgment that upheld the Enforcement Directorate’s (ED) extensive powers under the Prevention of Money Laundering Act (PMLA), including arrest, property attachment, and search and seizure.
The bench of Justice Surya Kant and Justice Joymalya Bagchi adjourned the matter after Solicitor General Tushar Mehta, representing the Centre, informed the court of his unavailability on the previously scheduled date. Senior advocate Kapil Sibal, representing the petitioners, consented to the adjournment.
Background: Review of 2022 Verdict
In July 2022, the Supreme Court delivered a landmark ruling that affirmed the constitutional validity of various provisions of the PMLA. The court described money laundering as a serious economic offence and a global threat to financial systems, stating that stringent measures were justified.
The judgment upheld ED’s powers to arrest individuals, conduct searches, seize assets, and attach properties under the Act, without mandating the supply of the Enforcement Case Information Report (ECIR) — the ED’s version of an FIR — to the accused.
The verdict was widely criticised by civil rights groups and opposition parties, who claimed that the law was being misused for political vendetta. Over 200 petitions had been filed seeking clarity and relief from various provisions of the law.
Issues Under Review
In August 2022, the Supreme Court agreed to examine the review petitions and issued notice on two specific concerns:
- Whether the accused should be entitled to receive a copy of the ECIR.
- Whether the reverse burden of proof under Section 24 of the PMLA — requiring the accused to prove their innocence — is constitutionally valid.
In a hearing earlier this year, the Supreme Court directed both the Centre and the petitioners to clearly frame the issues to be deliberated in the review. The Centre maintained that the scope of the review should be confined to the two points on which notice was issued, while the petitioners sought a broader relook at the judgment and even suggested referral to a larger Bench.
Future Course
A three-judge Bench has now been reconstituted to hear the matter on July 31. The hearing is expected to be significant, as any modification or reconsideration of the 2022 ruling could have wide-ranging implications for ongoing and future investigations under the PMLA.
As the legal battle continues, the case remains a focal point in the ongoing debate over the balance between national security and civil liberties in the enforcement of economic laws.
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