On 27 July 2022, the Supreme Court of India in Vijay Madanal Choudhary v Union of India, upheld the validity of various provisions of the Prevention of Money Laundering Act, 2002 (‘the Act’). Here is a summary of the findings and reasoning of the Court on key provisions of the Act.
On 27 July 2022, the three-judge bench headed by J. Khanwilkar upheld the constitutional validity of various provisions of the Prevention of Money Laundering Act, 2002. Through a series of articles and podcasts, we explain and explore the fallout of the judgment for money-laundering trials across the country as well as the criminal justice system at large.
This justification when viewed with reference to the definition of money laundering and wide list of predicate offences in the Act is lacking. Money laundering as a separate offence is best used to tackle criminal activity by organised groups involving large proceeds.
In the last ten years, the ED has recorded almost 5500 cases under the Act and more than Rs. 1,00,000 crores worth of property has been attached. On the other hand, only twenty three persons have been convicted under the Act since the ED took jurisdiction.
The law and the criminal justice system, we are told, is logical and dispassionate. There is no space in it for the emotions and vulnerabilities of its stakeholders. Consider the life of a ‘prisoner’; incarceration isolates them from everyday life and restricts their autonomy so severely as to be dehumanising. Coupled with the experience of being isolated from their loved ones, feelings of powerlessness, anger and humiliation are common.