Advertisment

Why Did Bombay HC Slam ED with Rs 1 Lakh Fine? | Know Why

The case dates back to August 2014, when the ED filed a prosecution complaint against real estate developer Rakesh Jain under anti-money laundering laws.

author-image
Pratidin Time
New Update
Why Did Bombay HC Slam ED with Rs 1 Lakh Fine? | Know Why

Why Did Bombay HC Slam ED with Rs 1 Lakh Fine? | Know Why

In a major setback for the Enforcement Directorate (ED), the Bombay High Court on Tuesday imposed a Rs 1 lakh fine on the agency for launching a money laundering probe against a Mumbai-based real estate developer without ‘proper application of mind.’ The court’s strong remarks have sparked a debate on investigative overreach and the misuse of power by central agencies.

Advertisment

What Went Wrong for the ED?

The case dates back to August 2014, when the ED filed a prosecution complaint against real estate developer Rakesh Jain under anti-money laundering laws. The probe stemmed from a police complaint lodged at Vile Parle police station by a property purchaser, who alleged breach of agreement and cheating.

However, Justice Milind Jadhav, while quashing the ED’s summons, ruled that no case of money laundering was made out against Jain. The court slammed the agency for exceeding its jurisdiction, emphasizing that it was "high time" such harassment of citizens stopped.

A ‘Strong Message’ from the Court

Justice Jadhav didn’t hold back, stating that a "strong message" was needed to prevent enforcement agencies from taking arbitrary actions. He underscored the importance of agencies operating strictly within the legal framework to maintain credibility and prevent misuse of power.

Why This Matters

The ruling raises serious concerns about the ED’s handling of cases and reinforces the judiciary’s role in keeping investigative agencies in check. With increasing instances of alleged overreach, this verdict serves as a reminder that even powerful agencies must remain accountable.

So, was this a wake-up call for the ED? Only time will tell. But for now, the Bombay High Court has made it clear—reckless probes won’t go unpunished.

Enforcement Directorate (ED) Bombay High Court