New Delhi, May 04, 2025
The Supreme Court has restructured a three-judge bench to review its 2022 decision affirming the Enforcement Directorate’s (ED) authority under the Prevention of Money Laundering Act (PMLA). The newly formed bench, comprising Justice Surya Kant, Justice Ujjal Bhuyan, and Justice N. Kotiswar Singh, will hear petitions challenging the verdict that upheld the ED’s powers of arrest, property attachment, search, and seizure in money laundering cases.
The case is scheduled for hearing on May 7, 2025.
The reconstitution follows the retirement of Justice CT Ravikumar, who was part of the earlier bench alongside Justices Surya Kant and Ujjal Bhuyan. On March 6, Justice Kant clarified that the matter was incorrectly listed before a two-judge bench and assured that a new three-judge panel would be formed to address the issue promptly.
In July 2022, the Supreme Court upheld key provisions of the PMLA, emphasizing that money laundering poses a significant threat to global financial systems and is not an “ordinary offence.” The court validated the ED’s powers and ruled that the Enforcement Case Information Report (ECIR) is not equivalent to an FIR under the Code of Criminal Procedure (CrPC). It further stated that providing an ECIR copy to the accused is not mandatory, provided the ED discloses the grounds for arrest at the time of detention.
However, in August 2022, the court agreed to revisit the verdict, noting that two aspects—non-disclosure of the ECIR and the reversal of the presumption of innocence—warranted reconsideration. The 2022 ruling addressed over 200 petitions challenging various PMLA provisions, with critics, including opposition parties, alleging misuse of the law to target political opponents.
The court also upheld Section 45 of the PMLA, which imposes stringent twin conditions for bail, deeming it reasonable and free from arbitrariness.
The upcoming hearing is expected to scrutinize these contentious issues, potentially reshaping the legal framework governing the ED’s operations under the PMLA.
