2023 (7) TMI 1299 - HC - Money Laundering

Constitutional Validity of section 19 of PMLA - release on interim bail - HELD THAT - Since the constitutional validity of Section 19 of the PMLA has been upheld by Hon ble Supreme Court in Vijay Madanlal Choudhary s case 2022 (7) TMI 1316 - SUPREME COURT therefore prayer of the petitioners with regard to challenge to the same cannot be considered only because of the fact that a review petition before Hon ble Supreme Court is pending. Therefore the prayer as made by the petitioners to this effect is rejected. The petitioners have further sought quashing of orders Annexures P-18 P-20 and P-21 whereby they were remanded to custody of the respondent No.2 and then to judicial custody and have further prayed for their release by way of granting them interim bail - Arguments on this point have been heard. Order on these point stands reserved.

Summary

Issues Involved:
The petitioners challenged the vires of Section 19 (1) of the Prevention of Money Laundering Act, 2002 and sought to quash the orders remanding them to custody and requested interim bail.

Challenge to Vires of Section 19 (1) of PMLA:
The petitioners challenged the vires of Section 19 (1) of the PMLA and also sought to quash the orders remanding them to the custody of the Enforcement Directorate and judicial custody. The respondents argued that the vires of this section had already been upheld by the Supreme Court in a previous case. The petitioners mentioned a pending review petition against the Supreme Court's judgment. The Court noted the Supreme Court's observation upholding the vires of Section 19 and stated that the precedential value of the judgment would not be diminished by a pending review petition. Consequently, the petitioners' challenge to the constitutional validity of Section 19 was rejected.

Quashing of Remand Orders and Interim Bail:
The petitioners further sought to quash the orders remanding them to custody and requested interim bail. The Court heard arguments on this matter and reserved the order.

Conclusion:
The Court rejected the petitioners' challenge to the vires of Section 19 (1) of the PMLA due to the Supreme Court's previous ruling upholding its validity. The Court also reserved the order on the petitioners' request to quash the remand orders and grant interim bail.