The Supreme Court on Thursday agreed to hear a review petition against its July 27 judgment upholding the Constitutional validity of the Prevention of Money Laundering Act, 2002 (PMLA). The court said two aspects of the PMLA — not providing an Enforcement Case Information Report (ECIR) and reversal of the presumption of innocence — “prima facie” requires reconsideration.
“There is no need for elaborate arguments. We feel that only two aspects may be necessary to be re-looked into the judgment,” said Chief Justice of India NV Ramana.
The bench, also comprising Justices Dinesh Maheshwari and CT Ravikumar, said the court is completely in support of the prevention of black money and money laundering as the country cannot afford such types of offences.
Referring to the two aspects relating to not providing ECIR and reversal of the presumption of innocence, the bench said after reading the judgment, “prima facie” it feels that these are the two issues that require reconsideration.
The bench said that the object of the Act is noble and the offence of money laundering is serious. On July 27, the bench headed by Justice AM Khanwilkar upheld the PMLA rejecting around 200 petitions against the Act. The bench headed by CJI issued notice to the Centre on the review petition filed by Congress MP Karti Chidambaram, accused in the ED’s cases along with his father P Chidambaram.
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Two aspects of PMLA verdict need relook: SC
Incidentally, the PMLA was amended in 2012 with stringent provisions to strengthen the powers of the ED by then Finance Minister Chidambaram.
Appearing for Karti, senior advocate Kapil Sibal said he has a lot of submissions to make in the matter. “We are feeling these are the two issues which can be re-looked,” the bench observed, adding, “We will issue notice.” Solicitor General Tushar Mehta, appearing for the Centre, said this is not a standalone provision for India and the country is part of a large global structure.
“We are part of a larger global structure and our law will have to be in tune with that larger global structure and that we have explained and the bench had very kindly examined that our law is in tune with not only that structure but our Constitution as well,” he said.
“Any deviation would risk India as a nation to be sent back to the other list where we will not be able to get certain financial assistance,” Mehta argued, adding there may be global repercussions as well. The bench told Mehta that the court is not opposing the actions of the Government to stop money laundering or bring back the black money or control its circulation as these offences are very serious.