ED Probe Agency Fined Rs 1 Lakh by Court
Bombay High Court Imposes Cost on Enforcement Directorate
The Bombay High Court recently made a significant decision by imposing a cost of Rs 1 lakh on the Enforcement Directorate (ED) for initiating a money laundering probe against a realty developer without proper application of mind. The court emphasized that central agencies like the ED must conduct themselves within the framework of the law to avoid harassing citizens.
Quashing of Summons Issued to Realty Developer
The High Court’s ruling came in response to the process (summons/notice) issued to Mumbai-based real estate developer, Rakesh Jain, by a special court in August 2014 based on a prosecution complaint filed by the anti-money laundering agency. The court found that no case was made out against Jain and that the money laundering charges did not stand. Justice Milind Jadhav, the presiding judge, stated that it was high time for central agencies like the ED to stop taking the law into their own hands and harassing citizens.
Exemplary Costs Imposed
The court highlighted that the actions of both the complainant and the ED were malicious and called for the imposition of exemplary costs. Justice Jadhav emphasized the need to send a strong message to law enforcement agencies, reminding them to conduct themselves within the boundaries of the law and refrain from harassing citizens without proper application of mind.
Costs to be Paid to the HC Library and Kirtikar Law Library
In its ruling, the court directed the Enforcement Directorate to pay the Rs 1 lakh cost to the HC library within four weeks. Additionally, a cost of Rs 1 lakh was imposed on the original complainant, which would be paid to the city-based Kirtikar Law Library. The court underlined the seriousness of money laundering offenses, stating that they involve a deliberate disregard for the interests of the nation and society as a whole.
Stay on Judgment for Appeal
Upon the request of the ED advocate Shriram Shirsat, the High Court stayed its judgment for one week to allow the agency to file an appeal in the Supreme Court. The court’s decision serves as a reminder to all law enforcement agencies to act responsibly and within the confines of the law to ensure justice and fairness for all citizens.