Review of SC’s Vijay Madanlal Judgement | Day 1: Bench determines scope of issues in the review petition
Review of the SC’s ‘Vijay Madanlal’ judgementJudges: Surya Kant J, Ujjal Bhuyan J, N.K. Singh J
Today, a three-judge bench of Justices Surya Kant, Ujjal Bhuyan, and N. K. Singh heard preliminary arguments in a review petition filed by Karti P. Chidambaram challenging the Supreme Court’s judgement in Vijay Madanlal v Union of India (2022). The judgement upheld the Enforcement Directorate’s (ED) wide powers of investigation under the Prevention of Money Laundering Act (PMLA), 2002.
The Bench focused primarily on the scope of issues to be adjudicated in the petition, after the parties disagreed over whether all grounds raised in the review are open for consideration.
Background
On 27 July 2022, in Vijay Madanlal Choudhury v Union of India, a three-judge bench led by Justice A.M. Khanwilkar upheld several provisions of the Prevention of Money Laundering Act, 2002 (PMLA) that gave the Enforcement Directorate wide-ranging powers. The judgement drew sharp criticism for effectively exempting the ED from procedural safeguards available to the accused under the Code of Criminal Procedure, 1973.
The Court held that the ED is not bound to supply the Enforcement Case Information Report (ECIR) to the accused, calling it an “internal document.” It upheld the stringent bail provisions under Section 45 of the Act, which reverse the presumption of innocence and place the burden on the accused to prove a prima facie case for bail. The Court further ruled that ED officers are not “police officers,” and hence, statements made to them are admissible as evidence.
Soon after the verdict, on 23 August 2022, Congress MP Karti Chidambaram filed a review petition. On 25 August 2022, the Supreme Court agreed to hear the review extending the scope to “at least two” key questions.
The petition challenges the admissibility of confessional statements, the denial of ECIRs, the reversal of burden of proof and the constitutionality of amendments made through Money Bills. Five other review petitions filed by PMLA-accused persons including businessmen, politicians and individuals charged under drug and fraud cases were tagged with the matter by mid-2024. The case is now listed before a new three-judge bench led by Justice Surya Kant.
Full notice issued, entire matter must be heard
Additional Solicitor General S.V. Raju, appearing for the ED, argued that the petitioners were attempting to widen the scope beyond the two limited issues that were decided in August 2022.
In response, Senior Advocates Kapil Sibal and Abhishek Manu Singhvi, argued the petitioners were entitled to argue all 13 questions of law framed in their review petition, including the constitutional challenges to provisions of the PMLA. They submitted that the 2022 Order did not restrict the scope of the proceedings as it referred to “at least two of the issues” which required consideration. They contended that the entire matter remained open for adjudication and a full and unrestricted notice had been issued.
Bench: Will adopt a two-stage approach, keep all issues open for now
Justice Kant clarified that the Court would proceed without prematurely narrowing the scope of the hearing. Instead, the Bench would first hear arguments on the three preliminary issues framed by the respondents. These primarily concern the maintainability of the review petition.
Based on this, he observed, the Court would decide whether to delve into the remaining broader constitutional questions proposed by the petitioners. If the review is found maintainable, the Bench would frame the broader issues. “We are not going to close the door on any issue at this point,” Justice Kant observed.
The Bench was informed that related cases, including matters heard by Justice S.K. Kaul (which were left undecided due to his retirement), involved identical legal issues and could potentially be tagged with this matter. Justice Kant suggested that the review petitioners raise the issue before the Chief Justice.
The case will be substantially heard on 6 August 2025.