Setback for Karti Chidambaram, SC upholds right to arrest under PMLA

In a major victory for the Enforcement Directorate, the Supreme Court on Wednesday upheld the validity of various provisions of the Prevention of Money Laundering Act.

A bench headed by Justice AM Khanwilkar pronounced its verdict on a batch of petitions highlighting issues related to rigorous provisions enunciated under the PMLA. The petitions had also questioned the alleged unbridled power given to Enforcement Directorate to convert any offence into a money-laundering offence.

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The petitions, including one by Congress MP Karti Chidambaram who is facing Enforcement Directorate proceedings under the PMLA, had alleged that the law is violative of the constitutional guarantee under Articles 20 and 21 of the right against self-incrimination and right to liberty. 

The bench, also comprising justices Dinesh Maheshwari and CT Ravi Kumar, delved into aspects like power to conduct raids and make immediate arrests, non-supply of Enforcement Case Information Report (the equivalent of an FIR) to the accused, attachment of properties immediately after registration of a case, tough bail conditions and lack of an oversight mechanism.

In its ruling, the bench said that the ECIR be equated with the FIR as it is an internal document of the Enforcement Directorate. The court further said that only disclosure of reasons during an arrest is enough; the supply of ECIR to the accused is not mandatory. 

The judges also highlighted that the argument about the proportionality of punishment under the PMLA act with respect to scheduled offences is wholly unfounded and rejected.

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• Prevention of Money Laundering Act
• karti chidambaram
• sc pmla
• supreme court