Supreme Court seeks Centre’s response on ED’s power to seize property without judicial oversight
New Delhi: The Supreme Court on December 12 sought the Union government’s response to a petition filed by K. C. Veerendra Puppy, a sitting Karnataka MLA, challenging the Enforcement Directorate’s (ED) power under the Prevention of Money Laundering Act (PMLA) to seize and retain property for up to 180 days without judicial oversight.
Veerendra Puppy is a member of the Karnataka Legislative Assembly from the Chitradurga Assembly constituency in Chitradurga district and was elected in the 2023 Karnataka Legislative Assembly elections on an Indian National Congress ticket.
A Bench comprising Justices P. S. Narasimha and A. S. Chandurkar issued notice on the plea and tagged it with other pending petitions questioning the constitutional validity of the PMLA’s adjudication framework.
The petitioner has specifically challenged Sections 20 and 21 of the PMLA, which empower the ED to seize, freeze, and retain property for up to 180 days without furnishing reasons or granting the affected person an opportunity to contest the action during that period. She has also questioned the composition of the PMLA Adjudicating Authority, contending that it lacks members with judicial training.
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During the hearing, Justice Narasimha flagged a possible infirmity in the law, observing that complex issues relating to property rights and constitutional safeguards are being decided by authorities without a judicial background.
Appearing for the MLA, Senior Advocates Mukul Rohatgi and Ranjit Kumar argued that the current statutory framework allows the ED to operate without effective accountability, leading to arbitrary exercise of power. The petitioner claimed that all her assets, including bank accounts, fixed deposits, jewellery, and vehicles, were seized or frozen without justification and without an opportunity to be heard.
Rohatgi submitted that the challenge rests on two principal grounds: first, the ED’s power to retain property and documents for 180 days without disclosing “reasons to believe”; and second, the constitution of the Adjudicating Authority, which currently comprises a single member who is not legally trained.
He further pointed out that, as per data available on the ED’s official website, nearly 99 percent of attachment and retention orders are upheld by the Adjudicating Authority, suggesting that it functions as a mere approving body rather than an independent adjudicatory forum.
The petition argues that these provisions violate Articles 14 and 21 of the Constitution, depriving individuals of equality before law and personal liberty. It contends that adjudication occurs only after the expiry of the 180-day period, when the ED seeks confirmation of retention, leaving affected persons without any remedy in the interim.
Describing the situation as a legal “vacuum” that enables arbitrary and excessive seizures, the plea urges the Court to mandate disclosure of reasons and provide for early judicial review. It also seeks directions requiring that every bench of the PMLA Adjudicating Authority include at least one judicial member.
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The MLA has relied on a 2023 Sikkim High Court judgment in Eastern Institute for Integrated Learning in Management University v. Joint Director, Enforcement Directorate, which directed that PMLA benches must include judicial members. That ruling is presently under challenge before the Supreme Court and has been linked with the present case.
The petition also cites the Supreme Court’s 2025 ruling in Arvind Kejriwal v. Directorate of Enforcement, which held that when executive action affects personal liberty, the “reasons to believe” must be recorded and communicated to the affected person. The petitioner argues that this safeguard should extend to property seizures, which can severely impact livelihood and reputation.
The matter will now be heard along with other pending challenges to the PMLA, including those questioning the validity of Section 6 of the Act.
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Real Madrid fines Valverde and Tchouaméni half a million euros each for altercation
Barcelona (AP): Real Madrid slapped players Federico Valverde and Aurélien Tchouaméni with half-a-million-euro ($588,000) fines on Friday for their altercation during practice.
The massive fines came a day after the midfielders tussled when the team trained. Valverde said in a post on social media on Thursday that no punches were thrown. But Valverde knocked his head on a table and he suffered a small cut that required a brief hospital visit.
On social media, Valverde initially called it a “meaningless fight” with a teammate and said “everything has been blown out of proportion."
His employers, however, considered it a significant enough breach of team discipline to nail both Valverde and Tchouaméni with fines that bite even the bank account of a top soccer player. The half-a-million euro penalties reflect the reputational damage the club was enduring in a chaotic end to a disappointing season.
In a statement, the 15-time European champion said its disciplinary action was concluded after both players expressed to the club “their complete remorse for what happened and apologized to one another.”
Madrid added they also apologized to their teammates, the coaching staff and club supporters, as well as showing their willingness to accept whatever disciplinary action the club deemed “opportune.”
Tchouaméni was back training with Madrid on Friday, two days before they play at Barcelona in a clasico. Madrid has to win otherwise Barcelona will be crowned La Liga champion.
After being notified of the fine, he posted a public apology to the club and its fans on social media.
“What happened this week in training is unacceptable,” Tchouaméni wrote. "I say this while thinking about the example we are expected to set for young people, whether in football or at school.
“Above all, I am sorry for the image we projected of the club.”
Valverde was not at practice due to the head knock.
Both players are set to play in the World Cup next month, with Tchouaméni playing for France and Valverde for Uruguay.
Chaotic end to a poor season
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The run-in between the players, who for seasons have played side by side in Madrid's midfield, came after they argued this week in previous training sessions. But tempers boiled over on Thursday. Spanish media was rife with reports that the players previously disagreed over the club's decision to let coach Xabi Alonso go after just months on the job.
It was not the only altercation involving Madrid players during training this week. Álvaro Carreras confirmed he was in a “minor” incident with a teammate. Spanish media said he and fellow defender Antonio Rüdiger got into a scuffle.
Álvaro Arbeloa, the coach who was promoted from Madrid's reserve team when Alonso was fired in January, will face tough questions on what went wrong inside the changing room when he gives a press conference on Saturday ahead of the clasico at Camp Nou.
Madrid is facing a second consecutive campaign without a major trophy amid rumors in the Spanish media that club president Florentino Pérez is considering bringing back Jose Mourinho to straighten out his underperforming team.
