The Supreme Court on Tuesday dismissed a plea filed by lawyer Gautam Khaitan, an accused in the AgustaWestland VVIP chopper scam, challenging the validity of a provision in the Prevention of Money Laundering Act (PMLA). The court sharply criticised the trend of affluent accused persons questioning the legality of laws mid-trial, instead of facing prosecution.
A bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi turned down Khaitan’s challenge to Section 44(1)(c) of the PMLA, which requires that a predicate offence and the related money laundering offence be tried together by a designated special court.
Expressing displeasure, the bench remarked:
“Just because I am rich I will challenge the validity of the law… this practice must stop.”
CJI Kant noted a “unique trend” where wealthy and influential accused, instead of undergoing trial like any ordinary citizen, approach the top court to question statutory provisions.
“If you are an accused, face the trial like any other ordinary citizen,” the CJI said bluntly.
Section 44(1)(c) of the PMLA provides that if a court, other than the designated PMLA court, takes cognisance of a scheduled offence, the matter must be transferred to the PMLA court for consolidated trial along with the money laundering charge. The provision seeks to avoid conflicting decisions and streamline the adjudication process.
Khaitan’s counsel, senior advocate Siddharth Luthra, argued that the provision’s constitutional validity required independent examination.
However, the bench declined to hear the matter separately, noting that several review petitions are already pending in the Vijay Madanlal Choudhary v. Union of India case, where the Supreme Court’s interpretation of key PMLA provisions is under reconsideration.
“Since the issue relating to the validity of provisions of the PMLA is under consideration in certain review petitions, it appears to us that the legality of Section 44(1)(c) shall be examined in the course of those proceedings. We see no reason to entertain a separate writ petition,” the court said.
The bench dismissed Khaitan’s petition, while leaving the legal question open. It allowed Luthra to seek intervention in the ongoing review proceedings.
Gautam Khaitan is facing prosecution under the PMLA in connection with alleged kickbacks in the ₹3,600 crore AgustaWestland helicopter deal. He was earlier arrested by the Enforcement Directorate for purportedly playing a key role in routing illicit payments and creating offshore structures.
The trial in the case is currently ongoing.
