LI Network
Published on: November 28, 2023 at IST 13:29 IST
The Madras High Court has issued an interim stay on the Enforcement Directorate’s (ED) summons directed at district collectors in connection with an alleged sand mining money laundering case.
The division bench, comprising Justice SS Sundar and Justice Sunder Mohan, issued these interim orders in response to a series of pleas challenging the validity of the ED’s summons to District Collectors in Tamil Nadu.
The court has granted a three-week period for the Enforcement Directorate to provide a response to the case.
It was emphasized that the offenses under the MMDR Act were not categorized as scheduled offenses under the Prevention of Money Laundering Act (PMLA), and hence, the ED lacked jurisdiction in this regard. it was further contended that the powers of the ED were not limitless and that the authority to issue summons was confined to scheduled offenses under the PMLA.
He asserted that the ED had overstepped its authority in this case, necessitating judicial intervention. Dave also highlighted that if the agency required cooperation from the officers, a formal request should have been made rather than issuing summons.
Conversely, ASG ARL Sundaresan, representing the ED, clarified that the officers were summoned solely for assistance, with no intention of conducting a fishing or roving inquiry.
Sundaresan challenged the maintainability of the petitions, arguing that none of the petitioners were accused in the case, and thus, efforts to impede the investigation should be dismissed.
Sundaresan further argued that rampant illegal mining in Tamil Nadu, constituting offenses under various sections of the IPC and the Prevention of Corruption Act, justified the ED’s jurisdiction to investigate. He accused the State and its officers of attempting to shield potential offenders.
According to Sundaresan, Section 50 of the Act empowered the Directorate’s officers to issue summons to any person, whether a private individual or a public officer. Acceptance of the State’s contention, as per the ED, would render all acts related to enforcing criminal provisions and civil law useless.
Case Title: State of Tamil Nadu v Enforcement Directorate