The Supreme Court has agreed to list for hearing a series of review petitions challenging its July 2022 judgment that upheld the Enforcement Directorate’s broad authority to arrest suspects, attach assets, and conduct searches under the Prevention of Money Laundering Act.
A bench comprising Chief Justice Surya Kant, Justice Joymalya Bagchi, and Justice V Mohana reached the decision following submissions by senior advocate Kapil Sibal, who appeared for review petitioner Karti Chidambaram. Sibal highlighted that notices on the review applications were issued in August 2022 and required prompt judicial consideration.
Addressing the procedural scheduling, Chief Justice Kant noted that reassembling the original bench would necessitate reorganizing three existing benches because the constituent judges currently sit in different combinations. To prevent further delay given the urgency, the three-judge bench determined that it will hear the proceedings directly, with the exact schedule to be announced at a later date.
Scope And Maintainability Of Review
The top court previously indicated on July 31 that it will first address preliminary arguments regarding whether the review petitions are maintainable before evaluating substantive legal questions. Review petitioners have submitted 13 legal queries for consideration, while the Enforcement Directorate has raised three preliminary objections centered on maintainability.
Justice Kant observed in prior proceedings that review actions operate within defined legal boundaries, noting that while different viewpoints may exist, the court cannot simply substitute its earlier opinion without meeting specific review criteria.
The central government, represented by Solicitor General Tushar Mehta, has argued that the scope of the review must remain confined to the two issues specified when notices were issued in August 2022. Those specific matters involve whether the Enforcement Directorate must furnish a copy of the Enforcement Case Information Report to an accused individual and the statutory reversal of the burden of proof under Section 24 of the anti-money laundering law.
Background Of 2022 Ruling
The original July 2022 judgment resolved a batch of more than 200 petitions challenging various provisions of the 2002 law. In that ruling, the apex court affirmed the statutory powers of the financial investigative agency, holding that money laundering poses a serious threat to global financial systems and cannot be treated as an ordinary criminal offense.
The court established that officials operating under the anti-money laundering statute do not constitute police officers and that an Enforcement Case Information Report is not equivalent to a First Information Report under the Code of Criminal Procedure. Consequently, the court ruled that providing a copy of the report to suspects is not mandatory prior to action, provided the grounds for arrest are disclosed at the time of detention. The court also sustained Section 45 of the statute, ruling that its strict twin conditions for granting bail are non-arbitrary and constitutional.
