The Supreme Court of India has agreed to hear a batch of review petitions challenging its landmark 2022 judgment in Vijay Madanlal Choudhary v. Union of India, which upheld several key provisions of the Prevention of Money Laundering Act, 2002 (PMLA) and validated the extensive powers of the Enforcement Directorate (ED).
The review petitions question the constitutional validity of various aspects of the 2022 ruling, including the ED’s powers to arrest individuals, attach properties alleged to be proceeds of crime, conduct searches and seizures, and rely on statements recorded during investigations. The petitioners have also raised concerns regarding procedural safeguards available to accused persons under the anti-money laundering framework.
The original judgment, delivered by a three-judge bench in July 2022, upheld multiple provisions of the PMLA, including Sections 3, 5, 17, 24, and 45. The Court had ruled that the Enforcement Case Information Report (ECIR) is an internal document and need not be supplied to the accused in the same manner as a First Information Report (FIR). It also sustained the stringent bail conditions under Section 45 and the reverse burden of proof under Section 24.
Following the verdict, several review petitions were filed by politicians, businesspersons, and other individuals facing proceedings under the PMLA. Petitioners have argued that the judgment granted disproportionate investigative powers to the ED while diluting constitutional safeguards relating to personal liberty, fair procedure, and protection against self-incrimination.
The Supreme Court has now constituted a fresh three-judge bench to hear the review petitions. The Court’s decision to revisit the matter is significant because the 2022 ruling has served as the principal authority governing PMLA investigations and prosecutions across the country.
The outcome of the review proceedings could have far-reaching implications for anti-money laundering enforcement in India. Any modification or clarification of the 2022 judgment may affect ongoing investigations, arrests, bail proceedings, and the scope of powers exercised by the Enforcement Directorate.
While the Court has agreed to hear the review petitions, it has not expressed any opinion on the merits of the challenges. The proceedings will determine whether any aspects of the landmark PMLA judgment warrant reconsideration.