Supreme Court Sets July 31 to Review 2022 Ruling on Enforcement Directorate’s Powers

Swift Summary:

• The Supreme Court of India has scheduled a hearing on July 31, 2025, to review its 2022 verdict upholding the Directorate of Enforcement’s (ED) powers under the Prevention of Money Laundering Act (PMLA).
• The initial hearing was postponed when Solicitor General Tushar Mehta requested an adjournment due to his unavailability. Senior advocate Kapil Sibal had no objection to the revised schedule.
• Key issues flagged for review were whether supplying an ECIR copy to the accused should be mandatory and the reversal of burden of proof under Section 24 of PMLA.
• In July 2022, the Supreme court deemed money laundering a global financial threat and validated several provisions under PMLA, including ED’s search, seizure, arrest, and attachment powers. It stated that authorities under PMLA are “not police officers as such” and emphasized that ECIR is distinct from an FIR in criminal proceedings. Disclosing grounds for arrest was considered sufficient rather of obligatory sharing of ECIR copies.

indian Opinion Analysis:
The upcoming review presents crucial questions on procedural fairness within india’s anti-money laundering framework while balancing enforcement against individual rights. By examining specific aspects like requiring disclosure of ECIR copies and shifting burdens in legal proceedings, judicial scrutiny could refine legal safeguards central to maintaining public trust in governance tools like PMLA-especially amid allegations from opposition claiming misuse for political purposes. This decision has implications both domestically regarding government accountability and internationally regarding India’s position on countering financial crimes effectively while respecting due process norms.

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