The Supreme Court in a recent order junked a review petition filed by the Enforcement Directorate (ED) against the top court's 2023 judgment which held that for invoking Prevention of Money Laundering Act (PMLA) under Section 120B of the Indian Penal Code (IPC), a criminal conspiracy must be linked to a money laundering offence.
In November 2023, the Supreme Court had ruled that for a PMLA case to be initiated on allegations of a criminal conspiracy, the alleged conspiracy must be linked with a money-laundering offence included under the PMLA. Thus, ED has to establish a case of money laundering and show proceeds of crime to charge someone in criminal conspiracy case under PMLA. Notably, the ED has levelled the same charge of criminal conspiracy against Delhi CM Arvind Kejriwal in the alleged Delhi liquor policy scam. To prove the case against him, according to the top court's verdict it is crucial that ED establishes proceeds of crime and thus a money laundering offence.
A bench of Justices Abhay S Oka and Pankaj Mithal dismissed the review petition observing that no ground for review was made out to reconsider the November 2023 verdict.
"We have perused the Judgment and Order dated 29th November 2023 which has been sought to be reviewed. There is no error apparent on the record. Even otherwise, there is no ground for review. Review Petitions are dismissed," the bench held in March 19 order.
The apex court had ruled that by allowing criminal conspiracy to be a scheduled offence by itself, without any link to any money laundering offence, would make the PMLA meaningless and redundant. The court reasoned that if a standalone allegation of criminal conspiracy is allowed to be a sufficient ground to launch a PMLA probe, then any offence under the IPC could attract PMLA.
In another significant development on interpretation and implementation of PMLA, the top court recently rejected another review petition moved by the Centre against a Supreme Court verdict in Pankaj Bansal Case which made it mandatory for the ED to furnish written grounds of arrest to persons arrested in PMLA.
Another division bench of Justice AS Bopanna and PV Sanjay Kumar earlier this month dismissed a review petition moved by Centre, stating that the decision in the Pankaj Bansal verdict does not contain any error.
In October 2023, the top court set aside the arrest of Pankaj Bansal and Basant Bansal in the money laundering case against the real estate group M3M and made it mandatory for ED officials to provide written grounds for arrest.