Bombay High Court’s ‘Strong Message’ To ED: Act As Per Law, Don’t Harass Citizens; Imposes 1 Lakh Cost
The Bombay High Court criticized the Enforcement Directorate (Ed) for overstepping its legal boundaries and harassing citizens, imposing a ₹1 lakh fine to send a strong message.

Justice Milind Jadhav emphasized that Central agencies must act within the law and not misuse their power. The court made these remarks while quashing proceedings initiated by the ED against a developer over a property dispute.

The case involved a purchaser alleging that the developer delayed handing over property possession, prompting a series of complaints. Despite earlier police findings that the matter was civil, the ED escalated the issue under the Prevention of Money Laundering Act (PMLA). The judge remarked, “It is seen that conspiracy of Money Laundering is hatched in secrecy and executed in darkness.

The present case before me is a classic case of oppression in the garb of implementation of PMLA,” Justice Jadhav found the ED’s actions along with the complainant’s, to be “malafide” and ruled that agreements between the developer and processor were routine business practices.

The court highlighted at the component misused the legal system to target the developer, suppressing prior findings that cleared the developer of wrongdoing. Calling for accountability, the court quashed the proceedings and reiterated the need for law enforcement agencies to act responsibly and avoid harassing individuals without proper grounds.

Source: – Live Law
By: – Rajat Ranjan
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