2 hrs ago
Supreme Court Reserves Verdict on PMLA Property Attachments
The Supreme Court is deciding who should approve property seizures under a money-laundering law.
The Enforcement Directorate can temporarily attach property when it suspects money laundering.
Another authority must decide whether that attachment should continue.
The petitioners say this authority should include a legally trained judicial member.
They worry that decisions affecting people’s property may not be fair without one.
The ED says the law allows some cases to be handled by one or two members.
It also says not every case involves difficult legal questions.
The judges have finished hearing arguments but have not yet announced their decision.
They asked the ED to provide information about how many attachment cases are being handled.
The Supreme Court reserved its verdict on whether a single-member, non-judicial PMLA authority can confirm ED property attachments.
The case concerns Sections 6 and 8 of the Prevention of Money Laundering Act, 2002.
Petitioners argued that a judicial member is needed when attachment decisions have civil consequences.
The Enforcement Directorate said Section 6 permits single- or two-member benches and not every case requires a judicial member.
The court directed the ED to file details within two days on the number of attachments before the authority.
- Who
- A Supreme Court bench led by Chief Justice Surya Kant, the petitioners including M/s Karvy Realty (India) Ltd., and the Enforcement Directorate.
- What
- The court reserved its verdict on whether a single-member, non-judicial PMLA adjudicating authority can confirm provisional property attachments.
- Where
- Before the Supreme Court.
- When
- The arguments concluded on Tuesday; the verdict was reserved afterward.
- Why
- The court must decide whether the composition of the adjudicating authority complies with the PMLA and safeguards judicial independence when property rights are affected.
Petitioners
Enforcement Directorate
Need for a judicial member
Petitioners
A judicial member, including someone qualified for appointment as a district judge, is needed as an institutional safeguard when attachment orders have civil consequences.
Enforcement Directorate
Section 6 allows the adjudicating authority to function through single- or two-member benches, and not every matter requires a judicial member.
Character of the authority
Petitioners
Allowing a non-judicial single member to decide property attachments could undermine the authority’s judicial character and the separation of powers.
Enforcement Directorate
The statutory provisions should be read harmoniously, allowing the authority to operate in the manner contemplated by Section 6.
Workload and meaningful review
Petitioners
A large number of cases being decided within the 180-day period could raise concerns about whether each matter receives meaningful consideration.
Enforcement Directorate
The ED cited around 400 attachments in a year while defending the statutory framework and the use of smaller benches.
Key facts
- Law involved
- Prevention of Money Laundering Act, 2002
- Key provisions
- Sections 6 and 8
- Agency involved
- Enforcement Directorate
- Statutory period
- Attachment proceedings must be adjudicated within 180 days
- Reported annual attachments
- The ED told the court that around 400 attachments took place in a year
- Next filing
- The ED must file attachment figures within two days
- Petitioner
- M/s Karvy Realty (India) Ltd.
Quotes
Chief Justice Surya Kant
Chief Justice of India and member of the Supreme Court bench hearing the PMLA challenge
“Even if you have 100 matters, why should you have only one officer to adjudicate?”
thestatesman.com
Sources
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