PMLA case: Supreme Court to first hear issue of maintainability of petitions seeking review of 2022 verdict

New Delhi: The Supreme Court on Thursday decided to first hear arguments on the issue of maintainability of petitions seeking a review of its 2022 verdict that upheld the Enforcement Directorate's powers to arrest, attach properties and carry out search and seizure under the Prevention of Money Laundering Act.

A bench of Justices Surya Kant, Ujjal Bhuyan and N Kotiswar Singh noted that the ED has proposed three preliminary issues that primarily deal with the question of the review petitions' maintainability.

The bench said the review petitioners have proposed 13 questions for its consideration.

"Since the proposed issues are arising in the review proceedings, we propose to firstly hear the parties on the issue of maintainability of the review petitions, followed by the hearing on the questions proposed to be raised on behalf of the review petitioners," the bench said.

The bench noted, eventually, the questions that might finally arise for consideration would also be determined by the court, if it holds that the review pleas are maintainable.

"They are justified in raising first of all preliminary issues whether the review is maintainable. All of us are well aware that review has its own limitations.... Sometimes we can have a different viewpoint but still, we cannot substitute," the bench said.

The court scheduled the matter for hearing on August 6.

On May 7, the Supreme Court had directed the Union government and others to redraft the issues to be decided in considering review petitions against the 2022 judgment.

The Centre had contended that the hearing of the review petitions cannot go beyond the two specific issues flagged by the apex court bench that issued notices on the petitions in August 2022.

Solicitor General Tushar Mehta had said the bench, which considered the review petitions for admission in August 2022, issued notices only on two aspects the supply of the ECIR copy to the accused and the reversal of the burden of proof under section 24 of the Prevention of Money Laundering Act .

The apex court had, in July 2022, upheld the ED's powers to arrest, attach properties involved in money laundering and carry out search and seizure under the PMLA.

In November 2017, a bench of Justices Sanjay Kishan Kaul and R F Nariman (both since retired) had held Section 45(1) of PMLA unconstitutional insofar as it imposes two further conditions for grant of bail to an accused saying this violates Articles 14 and 21 of the Constitution. 

This was overruled by a three-judge bench in July 27, 2022, judgment in the case Vijay Madanlal Choudhary vs Union of India. 

On a plea by Congress MP Karti Chidambaram and others, the apex court had on August 25, 2022 agreed to review its July 27, 2022.

The court had then flagged two main concerns, that is, non-providing of ECIR to accused at the time of arrest and negation of presumption of innocence.