Bombay HC slams ED for citizen harassment, imposes Rs 1 Lakh penalty
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The Bombay High Court on Tuesday reprimanded the Enforcement Directorate (ED) for harassing citizens, directing the agency to operate strictly within legal boundaries. Justice Milind Jadhav imposed a penalty of Rs 1 lakh on the ED for initiating a money-laundering investigation against a real estate developer, Rakesh Jain, without sufficient evidence.
In his judgment, Justice Jadhav emphasized the need for law enforcement agencies like the ED to act in accordance with the law and avoid unjustly harassing individuals. He stressed that a strong message needed to be sent to the ED, stating that the agency must act within the parameters of the law and not take matters into their own hands.
The court's ruling came as it quashed an order from a special Mumbai court in August 2014, which had issued a “process” against Jain under the Prevention of Money Laundering Act (PMLA) following an application by the ED.
Justice Jadhav noted that it is well-established that money laundering is a deliberate offense aimed at financial gain, to the detriment of national and societal interests. He stated that the case against Jain represented a "classic case of oppression under the guise of PMLA enforcement."
The ED had initiated its investigation based on a complaint from a property purchaser who accused Jain of cheating and breaching an agreement. However, the court found no substantive evidence to support the charges and ruled that the money-laundering allegations were baseless.
The High Court granted the ED four weeks to file an appeal, staying its judgment during this period.
