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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Terror threat: Security heightened near key religious, heritage sites in Delhi
New Delhi (PTI): Security was tightened across key religious and heritage sites in Delhi on Saturday, including areas around the Red Fort and parts of Chandni Chowk, following intelligence inputs suggesting a possible terror threat, an official said.
Security agencies issued an alert on a possible explosion threat near Red Fort, a major tourist destination and high-security zone, after Central intelligence agencies indicated that Pakistan-based terror outfit Lashkar-e-Taiba (LeT) has allegedly kept prominent religious places in India on its target list.
Sources said specific inputs suggested that a temple in the Chandni Chowk area could be among the potential targets.
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While the intelligence inputs are being verified and assessed, security has been stepped up in and around sensitive religious places and crowded public areas, they added.
Intelligence agencies indicated that LeT could be attempting to carry out an Improvised Explosive Device (IED)-based attack. The alleged plan is reportedly linked to attempts by the terror group to avenge the February 6 blast at a mosque in Islamabad, Pakistan, sources said.
Central agencies and Delhi Police units are maintaining close coordination, and surveillance has been intensified through CCTV monitoring, vehicle checks and deployment of additional personnel at vulnerable points. Bomb disposal squads, dog squads and quick reaction teams have also been placed on standby at strategic locations, they added.
The alert comes in the backdrop of the deadly car explosion near the historic Red Fort on November 10, 2025, which killed at least 13 people and injured more than 20 others. The blast occurred when a car loaded with explosives detonated near Gate No 1 of the Red Fort metro station, igniting multiple vehicles nearby and causing panic in the densely populated area.
Security agencies have urged people to remain vigilant and immediately inform police or emergency services about any suspicious objects or activity. However, officials said there is no cause for panic and that the measures are precautionary in nature.
Further intelligence gathering and verification of inputs are underway, an official said.
