• UGI USER
  • Nov 23, 2023
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SUPREME COURT REVIEWING 2022 PMLA RULING

Why in the News ?

  • The Supreme Court bench, handling petitions challenging the 2022 ruling on the Prevention of Money Laundering Act (PMLA) and the Enforcement Directorate’s (ED) powers, clarified its role is to consider the need for a relook by a larger bench.
Source: UNODC

Merits Not Under Scrutiny

  • Limited Scope: Justice S K Kaul emphasized that the court isn’t delving into the merits of the matter but rather assessing whether a reexamination is warranted.
  • Potential Referral to 5-Judge Bench: The court is evaluating if the issue demands consideration by a five-judge bench, steering away from determining the case’s substance.

Dynamics and Legal System Insights

  • Dynamic Legal System: Justice Kaul highlights the legal system’s dynamic nature, subject to continuous reevaluation.
  • Subjective Opinions: Emphasizes judicial opinions as subjective, with the potential to change or sustain.

PMLA Concerns and Criticism

  • Critique of 2022 Judgment: Sibal criticizes the ruling, asserting it jeopardises PMLA’s essence, characterizes ED as an “unruly horse.”
  • Rights Violation: Sibal argues ED practices violate personal liberty, citing summons ambiguity.

Legal Interpretation Challenges and Precedents

  • Discrepancies in Judgment: Sibal notes discrepancies in 2022 ruling’s interpretation of PMLA.
  • Parallel with Customs Act: Justice Khanna draws parallels with a previous Constitution Bench ruling on the Customs Act.

The SC bench reviews the 2022 PMLA ruling, focusing on the potential need for a larger bench, considering legal dynamics, concerns about PMLA interpretation, and citing relevant precedents.