Chhattisgarh govt files suit before Top Court challenging PMLA provisions
CJI led bench has ordered that the state's plea shall be listed for hearing on May 4, 2023.
State of Chhattisgarh has approached the Supreme Court challenging a few provisions of the Prevention of Money Laundering Act, 2002 (PMLA).
The matter was mentioned before a bench comprising Chief Justice of India DY Chandrachud and Justices PS Narasimha and S Ravindra Bhat by Senior Advocate Mukul Rohatgi.
"This suit raises some important constitutional questions on PMLA", Rohatgi told the Court.
CJI thus ordered to list the same on May 4, 2023 while refusing to see any urgency in the matter.
The original suit filed under Article 131 of the Constitution of India has challenged the recent searches being conducted by the Enforcement Directorate (ED) in the state.
It raises constitutional questions regarding sections 17 (Search and seizure), 50 (Powers of authorities regarding summons, production of documents and to give evidence, etc.), 63 (Punishment for false information or failure to give information, etc.) and 71 (Act to have overriding effect) and seeks a declaration that they are ultra vires of the Constitution.
Notably, in July last year, a bench headed by Justice AM Khanwilkar had upheld the constitutional validity of various provisions of the Prevention of Money Laundering Act, 2002. Over 200 petitions were filed challenging the provisions of the Act. It was argued before the court that the powers of Enforcement Directorate to arrest, force confessions, and seize property were unbridled.
Court had further held that the supply of Enforcement Case Information Report under PMLA proceedings is not mandatory since ECIR is an internal document and cannot be equated to FIRs.