SC to review money laundering verdict tomorrow

India

oi-Deepika S

New Delhi, Aug 24: The Supreme Court will hear Congress MP Karti Chidambaram’s plea challenging review of its PMLA judgment which upheld the powers of the Enforcement Directorate (ED) to arrest, investigation, and attachment of property under the PMLA Act.

“The application for an oral hearing is allowed. List the matter in the Court on August 25, 2022”, said a bench comprising Chief Justice NV Ramana and Justices Dinesh Maheshwari and CT Ravikumar.

Kari Chidambaram has filed an application seeking a stay of the operation of the July 27, verdict.

According to Karti Chidambaram, the verdict has an error apparent and is against the provisions of the Constitution. The top court had on Tuesday in a verdict on the application of provisions of Benami Transactions (Prohibition) Amendment Act, 2016 observed that its judgement on the Enforcement Directorate’s powers under the Prevention of Money Laundering Act (PMLA) to take possession of a property before trial in exceptional cases leaves scope for arbitrary application.

A three-judge bench headed by Chief Justice N V Ramana has said that the ratio concerning Section 8(4) laid down by the PMLA judgement needs further explanation.

In its July 27 verdict, the apex court has said that the direction under Section 8(4) for taking possession of the property in question before a formal order of confiscation is passed should be an exception and not a rule.

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“In Vijay Madanlal Choudary & Ors v. Union of India, this court dealt with confiscation proceedings under Section 8 of the Prevention of Money Laundering Act, 2002 (PMLA) and limited the application of Section 8(4) of PMLA concerning interim possession by the authority before the conclusion of the final trial to exceptional cases.

“The court distinguished the earlier cases in view of the unique scheme under the impugned legislation therein. Having perused the said judgment, we are of the opinion that the aforesaid ratio requires further expounding in an appropriate case, without which, much scope is left for arbitrary application,” the bench, also comprising Justice Krishna Murari and Justice Hima Kohli has said.

On July 27, the top court upheld the ED’s powers relating to arrest, attachment of property involved in money laundering, and search and seizure under the PMLA that were challenged by multiple petitioners including politician Karti Chidambaram.

The Centre has been insisting money laundering is an offence that is committed not only by unscrupulous businessmen but also by terror organisations, posing a grave threat to national security.