HC raps ED for 'mala-fide' probe, imposes ₹1L penalty

The Bombay High Court on Tuesday ruled that the Enforcement Directorate (ED) had launched a probe with "mala-fide intentions" into a contractual dispute and imposed a fine of ₹1 lakh each on the agency (ED) and the complainant in the case.

- Vinay Dalvi

MUMBAI:

"The present case before me is a classic case of oppression in the garb of implementation of the PMLA (Prevention of Money Laundering Act)," said the single judge bench of Justice Milind Jadhav.

"The action of the complainant as also ED to put the criminal system into motion is clearly mala-fide and calls for imposition of 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," said Justice Jadhav.

The bench was hearing a plea filed by developers Rakesh Jain and his son Akshay Jain, challenging the special PMLA court's order dated August 8, 2014, whereby the court took cognizance of the charge-sheet filed by ED against the Jains and issued processes against them.

The Jains argued that no offence was made out against them under sections 406 (criminal breach of trust), 418 (cheating with knowledge that wrongful loss would be caused), 420 (cheating) and 120B (criminal conspiracy) of the Indian Penal Code, 1860 and therefore the ED could not have initiated the money laundering probe.

The money laundering case stems from a first information report (FIR) registered at the Vile Parle police station based on a complaint by Gul Achhra, a representative of GK Solutions Private Limited.