The Union Government informed the Supreme Court that the scope of review petitions challenging the Vijay Madanlal Choudhary judgment—which upheld key provisions of the Prevention of Money Laundering Act (PMLA), 2002—must be confined to two specific issues flagged during the admission stage.
A bench comprising Justices Surya Kant, Ujjal Bhuyan, and N Kotiswar Singh briefly heard the review petitions today. These petitions were filed following the July 27, 2022 verdict, which validated contentious PMLA provisions related to arrest, seizure, burden of proof, and bail conditions.
Union Government: Review Petitions Can’t Go Beyond Two Points
At the outset of the hearing, Solicitor General Tushar Mehta submitted that during the admission of review petitions in August 2022, the bench issued notice on only two limited aspects:
- The supply of the Enforcement Case Information Report (ECIR) to the accused, and
- The reverse burden of proof under Section 24 of the PMLA.
Although the order didn’t explicitly mention these points, the Solicitor General emphasized that the Union had submitted an affidavit the next day clarifying the Court’s oral observations. This affidavit has remained unchallenged by the petitioners, he said, asserting that review proceedings should not extend beyond these two issues. He further argued that the petitions were, in effect, appeals in disguise, and therefore not maintainable.
Kapil Sibal Challenges Government Stand
Senior Advocate Kapil Sibal, appearing for the petitioners, contested the Union’s position, asserting that the Court’s order should be read as it is, without being overridden by any affidavit. Sibal also referred to a judgment by Justice Oka supporting the accused’s right to receive relevant documents, including the ECIR.
Bench Sets Timelines for Formulating Issues
Justice Surya Kant noted dissatisfaction with the draft issues prepared by the petitioners, urging the counsels to improve their submissions. The Court directed both sides to circulate properly framed issues for review and scheduled the matter for further hearings on August 6 and 7, 2025.
Additionally, at Sibal’s request for a preliminary procedural hearing, the bench agreed to list the matter on July 16, 2025 at 2:30 PM to finalize the issues.
Background: The Controversial VMC Judgment
The Vijay Madanlal Choudhary ruling by a bench of Justices A.M. Khanwilkar, Dinesh Maheshwari, and C.T. Ravikumar had upheld several crucial provisions of the PMLA, including:
- Sections 5, 8(4), 15, 17, and 19 – Powers of the Enforcement Directorate (ED) to arrest, attach properties, and conduct searches and seizures.
- Section 24 – Reverse burden of proof, upheld on grounds of having a “reasonable nexus” with the Act’s objectives.
- Section 45 – Twin bail conditions, restored through legislative amendment after being struck down in the Nikesh Tarachand Shah judgment.
After this verdict, eight review petitions were filed, including one by Karti P. Chidambaram, challenging various aspects of the judgment. With Justice Khanwilkar’s retirement, then Chief Justice N.V. Ramana presided over the review admission bench. On August 25, 2022, the Court issued notice and orally flagged concerns regarding the ECIR and burden of proof.
Despite several listings and adjournments, this is the first substantial hearing since the notice was issued.
Case Title: Karti P. Chidambaram v. The Directorate of Enforcement | RP(Crl) 219/2022 & Connected Matters