'Can't Put All People Behind Bars': CJI to ED on Indiscriminate Use of PMLA

The Supreme Court warned the ED against "indiscriminate" use of the Prevention of Money Laundering Act.

The Supreme Court on Wednesday, 15 December, warned the Enforcement Directorate against "indiscriminate" use of the Prevention of Money Laundering Act, saying the law will lose its relevance.

A bench, headed by Chief Justice NV Ramana and comprising Justices A.S. Bopanna and Hima Kohli, made strong remarks on the financial probe agency on the plea filed by Patna-based Usha Martin Ltd against attachment of its properties worth Rs 190 crore, on allegations of an iron ore sale scam.

Justice Bopanna noted, "If you (ED) indiscriminately use the PMLA, it will lose its relevance."

The bench told the ED counsel, "You are diluting the Act. Not just this case."

Citing issues if the law were to be used as a weapon even in cases where small amount of money is involved, the bench said, "If you start using it as a weapon against a 10,000 rupees case and 100 rupees case, what will happen?"

Emphasising on reasonable use of law, it told the ED counsel, "You can't put all people behind bars. You have to use it reasonably."

The Chief Justice said, "If you want to use it in every case, it doesn't work... This is not the way it works."