Newsletter - August , 2024

The Supreme Court aligns the Prevention of Money Laundering Act, 2002 (PMLA) with the edicts laid down in the Constitution of India

[Prem Prakash v. Union of India Through the Directorate of Enforcement, (SLP (Crl.) No. 5416/2024)]

Adding to the rights of accused against arbitrary and adverse effects on their fundamental and legal rights, the Supreme Court while hearing the instant case under the PMLA laid down the following:
❖ Section 45 PMLA which talks of offences to be cognizable and non bailable, can be relaxed when the accused has already been in custody for a considerable period of time with no surety of trial concluding in a short span of time;
❖ Article 21 is a higher constitutional right and it must be seen that statutory provisions align with the constitutional mandate; and
❖ Incriminating statement given by the accused while in judicial custody is hit by Section 25 of the Indian Evidence Act, 1872 and not admissible. The Apex Court also stated it violates Article 20(3) of the Constitution.

Supreme Court Upholds NCDRC Ruling: Reinforcing the rights of the Private Limited Company as a Consumer under the Consumer Protection Act of 2019

[Omkar Realtors and Developers Pvt. Ltd. Kushalraj Land Developers Pvt. Ltd. & Anr., (Civil Appeal No. 858 of 2023)]

In a recent Supreme Court ruling, the Court dismissed an appeal filed by a real estate developer challenging the National Consumer Disputes Redressal Commission’s (NCDRC) order. The NCDRC had directed the appellant to refund the amount paid by the complainant/allottee. In this case, the allottee was not an individual but a private limited company, which was also a real estate developer. The judgment reinforced the principle that a legal entity can still have consumer status under certain conditions, ensuring fairness and transparency