‘Limited ambit is whether 2022 verdict requires reconsideration’

The Supreme Court on Wednesday said its “limited ambit” was whether the 2022 verdict that had upheld the Enforcement Directorate’s (ED) powers to arrest and attach property involved in money laundering was required to be reconsidered by a larger bench of five judges.

While the Centre told the apex court that the Prevention of Money Laundering Act (PMLA) was an “important legislation” for the nation, the petitioners’ side claimed the ED has become an “unruly horse” and can go anywhere it wanted.

A three-judge bench headed by Justice Sanjay Kishan Kaul was hearing the pleas seeking reconsideration of the July 27, 2022 verdict by a three-judge bench on certain parameters.

In that verdict, the top court had upheld the ED’s powers of arrest, attachment of property involved in money laundering, search and seizure under the PMLA.

“Whether there is a need at all for having a review or not having a review. That is the limited ambit,” the bench, also comprising justices Sanjiv Khanna and Bela M Trivedi, observed on Wednesday.

“We have to also see whether...the matter needs to go to five-judges,” the bench said.

Senior advocate Kapil Sibal, who opened the arguments from the petitioners’ side, said the issues were so fundamental to the rule of law that they were required to be reconsidered.

“I am not here to convince your lordships whether the judgement is right or wrong. I am here to only prima facie suggest to your lordships that the issues are so fundamental to the rule of law that this whole issue requires to be reconsidered. That is the limited argument I am going to make,” he said.

At the outset, Solicitor General Tushar Mehta, appearing for the Centre, said when the matter was heard on October 18, the petitioners’ had started arguing on a “wide canvass” and he had objected to it saying there were no pleadings except the challenge to sections 50 and 63 of the Act.

While section 50 of the PMLA deals with powers of authorities regarding summons, production of documents and to give evidence

etc, section 63 pertains to

punishment for false information or failure to give information. Mehta said they have received an amendment petition which virtually challenges everything under the PMLA and says that the 2022 verdict needs to be reconsidered.