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‘In support of money laundering act but…’: SC on Karti Chidambaram plea
This comes a month after the ED's coercive powers to arrest suspects in cases were upheld by the top court.
Nearly a month after the Supreme Court upheld the stringent provisions of the Prevention of Money Laundering Act (PMLA) and the Enforcement Directorate powers on arrest, a petition - filed by Congress MP Karti Chidambaram - challenging the key judgment came up for a hearing on Thursday. The top court - during the hearing - underlined: "The objective of preventing black money and money laundering is nobel, and this court is in support of the government's endeavor. But certain aspects will need a relook."
The court has agreed to reconsider two crucial aspects of the PMLA.
The plea by the Congress leader - who has also been under the scanner of probe agencies - was heard in an open court. The Congress MP - among other opposition leaders - has been alleging misuse of central probe agencies by the BJP.
Advocate Kapil Sibal - appearing for Karti - on Thursday in the court questioned the July judgment over validating retrospective effect of the money laundering law.
The central government asked the Supreme Court to issue limited notice and decide the review petition as an appeal. Solicitor General Tushar Mehta insisted that major deviation will thwart efforts to stop money laundering.
Issuing a notice to the Centre on Karti's plea against the July 27 PMLA judgment the top court said that "prima facie, the issues of not providing ECIR (Enforcement Case Information Report) to accused and the reverse burden of proof will require a reconsideration."
The powers under the money laundering act for search, seizure, summon, arrest and bail were challenged in the petition. On Wednesday, a short order passed on the matter said: “The application for oral hearing is allowed. List the matter in the Court on August 25.”
Headed by Chief Justice Ramana, a three-judge bench - while striking down two offensive provisions on prosecution and confiscation under the Prohibition of Benami Property Transactions Act, 1988 - referred to the July 27 judgment. Certain aspects of the judgment required further exposition in an appropriate case as they created scope for arbitrary application, the bench had said.
