sc-moves-pmla-review-hearing-to-sept-18

The Supreme Court has postponed its review of the Prevention of Money Laundering Act (PMLA) judgement to September 18. The decision to defer was made due to the absence of one of the judges from the three-judge bench assigned to the case.

Senior Advocate Kapil Sibal, representing the petitioner, argued that the court's earlier judgement upholding various provisions of the PMLA requires a fresh look. Sibal highlighted concerns that the judgement needs to be reconsidered in light of new arguments.

The Supreme Court had initially set out to review two key issues related to the PMLA. During the previous hearing, Sibal emphasised the need for a thorough re-evaluation of the judgement. The court has assured that all parties involved will have a chance to present their arguments comprehensively.

Solicitor General Tushar Mehta opposed the review, arguing that the PMLA is consistent with the guidelines of the Financial Action Task Force (FATF). He asserted that the PMLA is not an isolated law but rather aligns with international standards for combating money laundering. The court has decided that the review petition, filed by Congress MP Karti Chidambaram among others, will be heard in an open court.

In July 2022, the Supreme Court had upheld several provisions of the PMLA, granting the Directorate of Enforcement significant powers. These include the authority to arrest, conduct searches, and seize assets.

The court also clarified that the Enforcement Case Information Report (ECIR) is not equivalent to a First Information Report (FIR) and that ED officers do not function as police officers.

Earlier, in March 2022, the court had reserved its order on multiple petitions challenging the PMLA provisions. Petitioners, including Karti Chidambaram and former Jammu and Kashmir Chief Minister Mehbooba Mufti, raised issues such as the lack of a clear process for initiating investigations and the non-disclosure of ECIR details to the accused.

The Centre defended the PMLA, stating that it is crucial for preventing money laundering, regulating related activities, and confiscating the proceeds of crime. The government emphasised that the PMLA is vital for meeting international obligations and global standards. Currently, the Directorate of Enforcement is investigating around 4,700 cases under the PMLA.