Supreme Court review its verdict on PMLA

In news– Underlining its support for a law against money laundering, the Supreme Court has recently agreed to reconsider its previous verdict upholding key provisions of the Prevention of Money Laundering Act(PMLA), 2005.

The Supreme Court’s earlier ruling on PMLA-

In Vijay Madanlal Choudhary & Ors v Union of India, a judgment delivered in July 2022, the Supreme Court upheld the key provisions of the PMLA.

In the 540-page ruling, the SC accepted the government’s arguments on virtually every aspect that was challenged by the petitioners: from reversing the presumption of innocence while granting bail to passing the amendments as a Money Bill under the Finance Act to defining the contours of the powers of the Enforcement Directorate (ED).

What is the Prevention of Money Laundering Act(PMLA), 2005?

It is a criminal law of the Parliament of India passed by the NDA government in 2002 to prevent money laundering and confiscate property derived from the laundered money.
Sec. 3 of PMLA defines offence of money laundering as whosoever attempts to indulge or knowingly assists in any process connected with the proceeds of crime and projecting it as untainted property shall be guilty of offence of money-laundering.
It prescribes obligation of banking companies, financial institutions and intermediaries for verification and maintenance of records of the identity of all its clients and also of all transactions and for furnishing information of such transactions in prescribed form to the Financial Intelligence Unit-India (FIU-IND).
PMLA empowers certain officers of the Directorate of Enforcement to carry out investigations in cases involving offence of money laundering and also to attach the property involved in money laundering.
PMLA envisages designation of one or more courts of sessions as Special Court or Special Courts to try the offences punishable under PMLA and offences with which the accused may, under the Code of Criminal Procedure 1973, be charged at the same trial.
PMLA allows the Central Government to enter into an agreement with the Government of any country for enforcing the provisions of the PMLA and exchange of information for the prevention of any offence under PMLA.

How is a judgement reviewed?

A ruling by the Supreme Court is final and binding. However, Article 137 of the Constitution grants the SC the power to review its judgments or orders.
A review petition must be filed within 30 days of pronouncement of the judgment.
Except in cases of death penalty, review petitions are heard through “circulation” by judges in their chambers, and not in an open court.
Lawyers make their case through written submissions and not oral arguments. The judges who passed the verdict decide on the review petition as well.
The SC rarely entertains reviews of its rulings. A review is allowed on narrow grounds to correct grave errors that have resulted in a miscarriage of justice.
“A mistake apparent on the face of record” is one of the grounds on which a case for review is made.
This mistake must be glaring and obvious such as relying on case law that is invalid.