ED not a drone to attack at will on any criminal activity: Madras HC
Chennai (PT): The Madras High Court has observed that the ED was not a "drone" to attack at will, and nor was it a "super cop" to investigate anything and everything which comes to its notice.
A division bench of Justice M S Ramesh and Justice V Lakshminarayanan made the observations while hearing the plea by city-based RKM Powergen Private Ltd challenging the Enforcement Directorate (ED) seizing Rs 901 crore of its fixed deposits in connection with a PMLA case.
The ED action came on the basis of an FIR registered by the CBI in 2014 over the allocation of coal blocks for a power plant in Chhattisgarh earlier.
The agency filed a closure report in 2017 saying it found no irregularities in the allocation of coal blocks.
The CBI court did not agree with the closure report and wanted further probe in some aspects.
In 2023, CBI filed a supplementary final report, which found that there were sufficient incriminating materials warranting prosecution under sections of IPC and Prevention of Corruption Act.
Later, the ED conducted searches in the premises of directors and holding companies associated with RKMP. On January 31,2025 a freezing order was passed wherein the fixed deposit to the tune of Rs 901 crore was frozen by the ED. The company challenged the said order and the court set it aside.
The bench said that a careful perusal of Section 66(2) of PMLA points out that if during the course of investigation, the ED comes across violations of other provisions of law, then it cannot assume the role of investigating those offences also.
It is to inform the appropriate agency, which is empowered by law to investigate that offence. If that agency, on the intimation from the ED, commences investigation and registers a complaint, then certainly the ED can investigate into those aspects also, provided there are "proceeds of crime".
"In case, the investigating agency does not find any case with respect to the aspects pointed out by the ED, then the ED cannot suo motu proceed with the investigation and assume powers. The essential ingredient for the ED to seize jurisdiction is the presence of a predicate offence. It is like a limpet mine attached to a ship. If there is no ship, the limpet cannot work. The ship is the predicate offence and "proceeds of crime". The ED is not a loitering munition or drone to attack at will on any criminal activity," the bench said.
It further said that a perusal of the papers show that no complaint had been lodged with respect to any of the aforesaid alleged criminal activities. "The ED is not a super cop to investigate anything and everything which comes to its notice."
There should be a "criminal activity" which attracts the schedule to PMLA, and on account of such criminal activity, there should have been proceeds of crime, it said.
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Bommai condemns Goa CM's statement on Mahadayi river project
Gadag (Karnataka), Jul 27 (PTI): BJP leader and former Karnataka Chief Minister Basavarj Bommai on Sunday condemned Goa Chief Minister Pramod Sawant's statement on the Mahadayi river project, as he also questioned the Congress' moral right to speak on the issue.
He claimed that whatever progress has been made on the Mahadayi issue, it happened under the BJP government.
Addressing the Goa Assembly last week, Sawant claimed that the Centre would not approve the Mahadayi project.
He also said the Goa government would file a contempt petition in the Supreme Court against Karnataka for carrying out activities aimed at diverting Mahadayi river water.
Bommai said, "There is no need to politicise the Mahadayi project issue. We are all united as this is an issue concerning the state. I condemn the statement made by the Chief Minister of Goa. There is no need to play such a big political game over one state's interests. He must act in accordance with the law, and hence I condemn his remarks."
Speaking to reporters here, he questioned the moral standing of Congress leaders in Karnataka on the Mahadayi issue.
"Congress leader Sonia Gandhi herself during the Goa polls said that not a single drop of Mahadayi water would be given to Karnataka. What moral right does Congress have to speak on this issue?" he asked.
Dubbing the Goa CM's statement an "insult to the people of Karnataka", CM Siddaramaiah had earlier hit out at the BJP stating "Why has the Centre not officially communicated its concerns? Is this how federalism works under the BJP? Are we being punished for not surrendering to the BJP?"
Bommai accused the Congress party of building a barrier to prevent Mahadayi water from flowing into the Malaprabha river, thereby obstructing the interlinking canal work initiated during the BJP regime and this was the only "contribution" Congress made to the Mahadayi project.
"Whatever progress has been made on the Mahadayi issue, it happened under the BJP government. The Congress, which constituted the tribunal, did not even provide it an office for four years. It was the BJP government that gave it an office. Though the tribunal gave a verdict, it was not notified. The NDA government under Prime Minister Narendra Modi issued the notification," he said.
It was the central NDA government that prepared the DPR for the Mahadayi project and got it approved. "It was also the BJP government that secured environmental clearance. The only thing the Congress did was to block the interlinking canal works started during the BJP tenure by constructing a barrier to prevent Mahadayi water from reaching the Malaprabha river," he said.
Goa has been opposing Karnataka's Kalasa-Banduri project in the Mahadayi river basin.
The Kalasa-Banduri project by the Karnataka government proposes diverting Mahadayi river water into the Malaprabha river to enhance the drinking water supply in parts of Dharwad, Belagavi, Bagalkote, and Gadag districts.
The Mahadayi river flows through Karnataka and Goa before joining the Arabian Sea. Known as the Mandovi in Goa, it is one of the state's two major rivers.
The diversion of Mahadayi water has long been a point of contention between Karnataka and Goa, with the latter claiming "it would severely impact the state's flora and fauna."
Speaking about the urea shortage in the state, Bommai said the government could have averted the crisis.
"Rainfall began early this year, and fertilizer should have been supplied where needed. Buffer stock should have been maintained, the management has not been proper," he said.
Noting that the state government has now submitted to the Centre for additional urea fertilizer supply, he said, "We (BJP) too will speak with the Union Minister for Agriculture and Fertilizers to get more supply. But more importantly, the fertilizer that is already arriving must be distributed properly by the Agriculture Department and the concerned ministers."
