'ED is not a super cop who has the right to investigate every case', know on which case Madras High Court reprimanded

News Topical, Digital Desk : While hearing a case, the Madras High Court reprimanded the Enforcement Directorate (ED). The court said that the ED is not a roaming weapon or drone that attacks any criminal case at its own will, nor is it a super cop who has the right to investigate every case.

A division bench of Justices MS Ramesh and V Lakshminarayanan ruled that the ED's powers under the Prevention of Money Laundering Act (PMLA) can be used only if there is an unjust crime or some ill-gotten gains from that crime. The court quashed the ED's order to freeze fixed deposits of Rs 901 crore of RKM Powergen Private Limited.

What did the Madras High Court say?

"Under PMLA, the existence of a premeditated offence is necessary. When there is no premeditated offence, it is improper to take action under PMLA," the bench said. The court compared the jurisdiction of the ED to a limpet mine which needs a ship to operate it. "The ship is the basis of the offence and the proceeds of the crime," the court said.

In which case did the court give this decision?

The court's decision came on a petition filed by RKM Powergen Private Limited, challenging the ED's order to freeze its fixed deposits on January 31. Senior advocate B. Kumar, appearing for the company, said that the ban disregards earlier court orders and lacks new facts.

RKM was allotted the Fatehpur East coal block in 2006. The Supreme Court cancelled the allocation in 2014. The CBI initially filed an FIR but the case was closed in 2017. The ED nevertheless initiated a PMLA probe in 2015 and put a freeze on RKM’s accounts, which was earlier revoked by the Madras High Court.

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