[PMLA judgment] Not providing ECIR, reversal of presumption of innocence need relook: Supreme Court issues notice on review plea

The Supreme Court on Thursday issued notice to the Central government in the review petition challenging its July 27 verdict upholding the validity of provisions of the Prevention of Money Laundering Act (PMLA) [Karti Chidambaram vs ED]..A Bench of Chief Justice of India (CJI) NV Ramana with Justices Dinesh Maheshwari and CT Ravikumar said that while the objective of PMLA is noble and the offence of money laundering is serious, certain aspects of the judgment would need a relook.In its order, the Court noted that "at least" two aspects require to be reconsidered by it."Having heard learned Senior counsel appearing on behalf of the petitioner as also learned Solicitor General appearing on behalf of the respondent, prima facie, we are of the view that at least two of the issues raised in the instant petition requires consideration. In view of the above, issue notice to the respondent," the order said.The two issues which the Court cited orally during the hearing are:- Providing the accused with a copy of the Enforcement Case Information Report (ECIR)- Reversal of presumption of innocence."We are completely in support of prevention of black money or money laundering. Country cannot afford such offence. Object is noble. (But) no providing of ECIR and reversal of presumption of innocence which are two issues which needs reconsideration as per us," the CJI remarked..Solicitor General (SG) Tushar Mehta, however, opposed the same."Error in judgment cannot be a ground of review. This is not a standalone provision and we are part of the larger global structure and Supreme Court held it is in tune with international and constitutional scheme," he said."We are not opposing government to stop money laundering or bringing back black money and these are serious offences," the CJI said."But this will have global repercussions," the SG replied."It is a serious thing, we are not doubting the objective of the government. But there are prima facie issues. We issue notice. Let writ petitions be heard along with review," the CJI stated..The Court then issued notice to the Central government and ordered that interim protection granted to accused-petitioners would stand extended for 4 weeks. "List after 4 weeks and place before the CJI," the Court ordered..The Supreme Court had on Wednesday allowed an open court hearing in the review petition filed by Congress lawmaker Karti Chidambaram challenging the top court's July 27 verdict.The verdict saw stringent bail conditions in money-laundering cases being upheld, in variance with earlier Supreme Court decisions.The Court had also upheld the validity of Sections 3 (definition of money laundering), 5 (attachment of property), 8(4) [taking possession of attached property), 17 (search and seizure), 18 (search of persons), 19 (powers of arrest), 24 (reverse burden of proof), 44 (offences triable by special court), 45 (offences being cognizable and non-bailable and twin conditions for grant of bail by court) and 50 (statements made to ED officials).The judgment under review also held that the supply of ECIR under PMLA proceedings is not mandatory, since it is an internal document and cannot be equated to a First Information Report (FIR)."ECIR cannot be equated with FIR and ECIR is an internal document of ED.Supply of ECIR to accused is not mandatory and only disclosure of reasons during arrest is enough. Even the ED manual is not to be published since it is an internal document," the judgment had said.However, the Court had held that the validity of amendments made to the PMLA in 2019 through a money bill has to be decided by a larger bench of seven judges, before which the same question is already pending..The judgment was panned by many in the legal community as denuding the fundamental right to liberty under Article 21 of the Constitution.Interestingly, another three-judge Bench of the apex court had on Tuesday said that the ratio of the PMLA verdict with regard to Section 8(4) of PMLA has left scope for arbitrary application.A Bench of Chief Justice of India NV Ramana and Justices Krishna Murari and Hima Kohli said that the ratio concerning Section 8(4) laid down by the PMLA judgment in Vijay Madanlal Choudary & Ors v. Union of India would need further expounding to prevent arbitrary application.The observations were made in a judgment striking down various provisions of the Benami Transactions (Prohibition) Act of 1988 and the 2016 amendments to the 1988 Act as unconstitutional..[Follow our coverage of today's hearing].[Read Order]