Bombay HC Fines ED ₹1 Lakh For Malafide Money Laundering Probe Against Developer
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Mumbai: The Bombay High Court imposed a ₹1 lakh fine on the Enforcement Directorate (ED) on Tuesday for initiating a baseless money laundering probe against Mumbai-based real estate developer Rakesh Jain, stressing the need for central agencies to operate within legal boundaries.
Justice Milind Jadhav criticized the ED for its actions, stating they were “clearly malafide” and lacked legitimate grounds. The court dismissed the money laundering charges against Jain and quashed the summons issued by a special court in August 2014. The probe stemmed from a police complaint accusing Jain of breach of agreement and cheating.
Emphasizing accountability, Justice Jadhav remarked, “The ED must conduct themselves within the parameters of the law and not harass citizens.” The court ordered the agency to pay ₹1 lakh to the High Court library within four weeks.
Additionally, a fine of ₹1 lakh was imposed on the original complainant, a property purchaser, to be paid to the Kirtikar Law Library in Mumbai. The judgment described the case as an example of “oppression under the guise of implementing the Prevention of Money Laundering Act (PMLA).”
Following a request from ED advocate Shriram Shirsat, the High Court granted a one-week stay on its ruling to allow the agency to appeal to the Supreme Court.
