Bombay HC warns ED on harassing people, fines ₹1 lakh

The Bombay High Court on Tuesday imposed a fine of ₹1 lakh on the Enforcement Directorate (ED) for initiating a money laundering investigation against a real estate developer without a ‘proper application of mind’, as per reports.

Justice Milind Jadhav reportedly emphasised the need for central agencies to operate strictly within the legal framework to prevent harassment of citizens.

The court quashed the summons issued in August 2014 by a special court against Mumbai-based developer Rakesh Jain, based on a prosecution complaint filed by the ED under anti-money laundering laws. Justice Jadhav remarked that a ‘strong message’ was necessary to deter such actions by agencies, as per reports.

The ED had initiated the probe following a police complaint lodged at the Vile Parle police station by a property purchaser alleging breach of agreement and cheating. 

However, Justice Jadhav concluded that no case was made out against Jain, invalidating the money laundering charges. The court criticised the ED for overstepping its authority, asserting it was ‘high time’ such agencies ceased harassing citizens, suggested reports.