The Supreme Court announced on Thursday that it will consider whether to revisit its 2022 ruling that affirmed the extensive powers of the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA). This decision includes the authority to arrest individuals, attach properties, and conduct searches and seizures. The hearing is scheduled for the end of April or the beginning of May.
This announcement came from a bench comprising Justices Surya Kant and N Kotiswar Singh, who noted that the matter was initially supposed to be heard by a three-judge bench and had been incorrectly listed before them. Solicitor General Tushar Mehta, representing the Centre, concurred with the bench’s view and requested the postponement of the hearing.
Senior Advocate Kapil Sibal, arguing on behalf of the petitioners, emphasized the urgency of the matter and advocated for a swift hearing by the appropriate three-judge bench. Justice Surya Kant expressed confusion over the administrative error that led to the mislisting and reassured that a specific date would be provided soon, though not before the end of April.
The Supreme Court’s decision to reconsider comes in response to a batch of pleas challenging the July 27, 2022, verdict. These pleas specifically question the provisions allowing the non-disclosure of the Enforcement Case Information Report (ECIR) to the accused and the reversal of the presumption of innocence in PMLA cases.
In the 2022 ruling, the Court had defended these powers as essential to combat the global threat of money laundering, which jeopardizes the functioning of financial systems. The Court had stated that the ED’s functions under the PMLA were distinct from traditional police activities, noting that the ECIR does not equate to an FIR under the Criminal Procedure Code (CrPC), and that disclosing the ECIR was not mandatory unless at the time of arrest.
Additionally, the Court had upheld Section 45 of the PMLA, which stipulates that offences under this act are cognisable and non-bailable, with strict conditions for granting bail, describing these provisions as reasonable and not arbitrary.
