By Dr. Dilip K. Sheth, Chartered Accountant
BACKGROUNDOn 27th July, 2022, the Supreme Court of India gave a landmark ruling in the case of
Vijay Madanlal Choudhary vs. Union of India [2022] 140 taxmann.com 610 (SC) on various aspects and concepts involving dicey provisions of The Prevention of Money Laundering Act, 2002 (“PMLA”). This decision put to rest raging controversies on various issues agitated in a huge batch of petitions, appeals and cases.
DICEY ISSUESThe issues agitated before and examined by the Supreme Court covered as many as twenty significant aspects of PMLA. Some of these had arisen from decisions of various High Courts rendered a long time ago and were pending the final decision of the Apex Court. Few crucial aspects related to parameters of the concept of money-laundering, punishment for money-laundering, confirmation of provisional attachment, search and seizure, arrest, the burden of proof, bail, powers of authorities regarding summons, production of evidence and Special Courts.
These aspects were agitated before the Supreme Court in as many as over 240 civil and criminal writ petitions, appeals and special leave petitions (SLPs) including transferred petitions and cases.
APPROACH OF THE SUPREME COURTThe Supreme Court was seized of various civil and criminal writ petitions, appeals, SLPs, transferred petitions and transferred cases raising various questions of law. Such questions pertained to constitution
