Law

“A Strong Message Needs To Be Sent…”: Bombay HC Imposes Rs 1 Lakh Penalty On ED

Bombay HC

The Bombay High Court on Tuesday said that central agencies such as the Enforcement Directorate (ED) must stop harassing citizens and conduct themselves within the framework of the law.

The Scroll reported that Justice Milind Jadhav imposed costs of Rs 1 lakh on the probe agency for initiating a money-laundering probe against a real estate developer without adequate supporting material.

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Justice Jadhav said, “I am compelled to levy exemplary costs because a strong message needs to be sent to the law enforcement agencies like ED that they should conduct themselves within the parameters of law and that they cannot take law into their own hands without application of mind and harass citizens.” Justice Jadhav said.

Judge Jadhav made the observations while quashing a Mumbai special court’s order from August 2014 that issued a “process” against real estate developer Rakesh Jain. The Court, under the Prevention of Money Laundering Act, passed the order on an application filed before it by the Enforcement Directorate.

The single-judge bench of the Bombay HC said: “By now, it is settled that an offence of money laundering is committed by a person deliberately with the aim to increase gains, disregarding the interest of the nation and society.”

“It is seen that conspiracy of money laundering is hatched in secrecy and executed in darkness,” the judge said. “The present case before me is a classic case of oppression in the garb of implementation of PMLA.”
The ED had launched a money-laundering probe against Mr Jain based on a police complaint filed against him by a property purchaser who claimed cheating and breach of agreement.

Jadhav ruled that no case was made against Jain, and therefore, the money laundering charges did not stand. The Court has stayed its judgement, giving the central agency four weeks to file an appeal.

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