The Supreme Court of India is set to hear a series of review petitions on August 6, 2025, challenging its 2022 ruling that upheld the sweeping powers of the Enforcement Directorate (ED) under the Prevention of Money Laundering Act, 2002 (PMLA).
Petitioners Seek Reference
Petitioners have urged the Court to refer the matter to a larger constitutional bench, citing serious constitutional questions arising from the judgment in Vijay Madanlal Choudhary v. Union of India. The original verdict, delivered by a three-judge bench, endorsed the ED’s authority to conduct arrests, raids, and asset attachments without adhering to conventional procedural safeguards under the Code of Criminal Procedure (CrPC).
Landmark Ruling Draws Constitutional Scrutiny
The ruling also declared that the PMLA is not a penal statute, a position that has attracted criticism from legal experts and civil rights activists. Critics argue this interpretation shields the law from essential legal protections afforded to individuals under criminal jurisprudence.
Retrospection
Petitioners contend that the judgment has far-reaching consequences. They have raised concerns over the retrospective application of certain provisions, the broad definition of “proceeds of crime,” and the reversal of the burden of proof, which they argue erodes the presumption of innocence.
Given the potential infringement on fundamental rights, the petitioners maintain that the issue requires reconsideration by a larger, constitution bench of the Supreme Court. The Court has agreed to consider this request, opening the door to a possible re-examination of the foundational interpretation of the PMLA.
Nationwide Impact Expected
The decision in the upcoming review could significantly affect how money laundering cases are investigated and prosecuted across India. It may also redefine the contours of the ED’s authority and the balance between enforcement and civil liberties.
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