In a notable judgment, the Bombay High Court imposed a Rs 1 lakh fine on the Enforcement Directorate (ED) on Tuesday, criticizing the agency for initiating a money laundering investigation against Mumbai realtor Rakesh Jain without sufficient grounds. Justice Milind Jadhav of the single bench stated that this case should serve as a stark reminder to law enforcement agencies about adhering strictly to legal boundaries and not harassing citizens.
The court’s decision came after it found that the summons and notices issued to Jain by a special court in August 2014, based on the ED’s prosecution complaint, were groundless. The ED had accused Jain of money laundering following a complaint at the Vile Parle police station by a property buyer who alleged breach of agreement and cheating.
Justice Jadhav highlighted that no credible case of money laundering was established against Jain and criticized the ED’s actions as “malafide,” emphasizing the need for law enforcement to operate within the confines of the law. He remarked, “It is high time that central agencies like the ED stopped taking the law into their own hands.”
Moreover, the court not only fined the ED but also imposed an additional Rs 1 lakh cost on the original complainant, which is to be paid to the Kirtikar Law Library in Mumbai. Justice Jadhav stressed that money laundering involves deliberate criminal intent and significantly harms the national and societal interest. He described the current case as an “oppression in the garb of implementing the PMLA (Prevention of Money Laundering Act).”
The court has allowed the ED a one-week stay on the judgment to enable the agency to appeal to the Supreme Court, following a request from ED advocate Shriram Shirsat.
