SC junks fresh petition seeking reconsideration of court ruling on PMLA

The Supreme Court on Friday rejected a plea seeking reconsideration of a July verdict where it upheld the key provisions of the Prevention of Money Laundering Act (PMLA).

Two-judge bench comprising Chief Justice of India UU Lalit and justice Bela M Trivedi dismissed the plea which challenged the constitutional validity of Section 37 of the Act that stipulates the power of the chairperson of the PMLA Authority to transfer cases.

"As soon as you have a problem with a provision you assail the Act. It is not as if you face a trial. It is only a prima facie case," the CJI verbally observed.


The plea also made a reference towards sending the July verdict to a larger bench for consideration. The bench of CJI Lalit and justice Trivedi refused to entertain the plea, calling it "misconceived".

A bench of justices AM Khanwilkar, Dinesh Maheshwari and CT Ravikumar in its July 27 ruling had upheld the constitutional validity of the provisions of the PMLA, calling it a "unique and special legislation" and underlining the powers of the Enforcement Directorate to hold inquiries, arrest people and attach property. Justice Khanwilkar has since retired.

The court had in August agreed to hear Congress MP Karti Chidambaram's review plea, and had sought the government's response.