Discover the key details of the Supreme Court’s upcoming review of the Vijay Madanlal Choudhary ruling on the Prevention of Money Laundering Act (PMLA). Scheduled for May 7, the hearing will address critical aspects like the Enforcement Directorate’s powers and the presumption of innocence.

Introduction

On May 7, the Supreme Court of India will reconvene to hear appeals against the Vijay Madanlal Choudhary ruling, which upheld significant provisions of the Prevention of Money Laundering Act (PMLA). The petitions aim to challenge the earlier verdict, and the reconstituted bench is set to deliberate on pivotal issues.

Bench Reconstitution

Initially, the case was handled by a bench comprising Justices Surya Kant, C.T. Ravikumar (now retired), and Ujjal Bhuyan. Following Justice Ravikumar’s retirement, the bench has been reassembled with Justice N. Kotiswar Singh joining the team. The hearing is scheduled for 2:00 PM on May 7.

Background: The Vijay Madanlal Choudhary Ruling

 On July 27, 2022, a bench led by Justices A.M. Khanwilkar, Dinesh Maheshwari, and C.T. Ravikumar delivered the landmark ruling. This decision upheld key provisions of the PMLA, including:

1. Authority of the Enforcement Directorate: Sections 5, 8(4), 15, 17, and 19 grant powers for arrests, attachment, search, and seizure.

2. Reverse Burden of Evidence: Section 24 places the burden of proof on the accused, aligning with the Act’s objectives.

3. “Twin Conditions” for Bail: Section 45’s stringent bail requirements were reinstated by Parliament in 2018, overriding the Supreme Court’s earlier decision in Nikesh Tarachand Shah.

Grounds for Review

Eight petitions were filed seeking an immediate review of the ruling. Notable issues include:

• The Court’s finding that accused individuals need not receive a copy of the Enforcement Case Information Report (ECIR), akin to a First Information Report (FIR).

• The reversal of the presumption of innocence, which sparked widespread debate.

Timeline of the Review Process

1. August 25, 2022: A bench led by Chief Justice N.V. Ramana observed that certain conclusions warranted reexamination.

2. August 7, 2022: The Court granted an open hearing on the petitions.

3. October 16, 2022: The case was deferred due to Justice Surya Kant’s absence, after initially being scheduled for September 18.

What to Expect on May 7:

The reassembled bench, comprising Justices Surya Kant, Ujjal Bhuyan, and N. Kotiswar Singh, will address the critical review petitions. This hearing could have significant implications for the enforcement of anti-money laundering laws in India.

Conclusion

The Supreme Court’s review of the Vijay Madanlal Choudhary ruling marks a crucial moment for the interpretation of the PMLA. The decision will not only impact ongoing cases but also set a precedent for how financial crimes are prosecuted in India. Stay tuned for updates on this landmark case.