Team TrickyScribe: Bombay High Court issued a scathing critique of the Enforcement Directorate (ED) on Tuesday, emphasizing the need for central agencies to operate within the bounds of law and avoid harassment of citizens. Justice Milind Jadhav imposed an exemplary cost of ₹1 lakh on the ED, sending a clear message that law enforcement must act with accountability.
Justice Jadhav: ED’s Conduct Lacks Legal Basis
Highlighting the misuse of authority, Justice Jadhav stated, “A strong message needs to be sent to law enforcement agencies like the ED that they cannot act without application of mind and harass citizens.” The court noted that offenses under the Prevention of Money Laundering Act (PMLA) often involve conspiracies executed in secrecy but stressed that such cases require lawful investigation.
Case Background: Developer vs. Complainant
The matter pertained to a city-based developer accused of misusing ₹4 crore paid for renovating two floors of a building in Malad, Mumbai. The complainant alleged fraud when the developer delayed possession and the Occupancy Certificate (OC). Despite police investigations labeling the issue as civil, the complainant escalated the matter to the ED, leading to criminal proceedings.
High Court: Allegations and ED’s Actions Were Malafide
The High Court quashed the ED’s proceedings, labeling the agency’s actions and the complainant’s allegations as malafide. Justice Jadhav observed that simultaneous agreements between developers and purchasers for renovations are standard practice in Mumbai and cannot be deemed illegal.
Suppressed Findings: Complainant’s Sinister Motive
The complainant’s decision to ignore earlier police findings and approach a different jurisdiction reflected a “sinister motive,” according to the court. Justice Jadhav imposed an additional ₹1 lakh cost on the complainant for abusing the judicial system to serve personal interests.
Court’s Verdict: Upholding Developer’s Rights
With these observations, the court quashed all proceedings against the developer, reiterating the importance of lawful conduct by law enforcement and individuals alike. The judgment reinforces that misuse of legal mechanisms will not be tolerated.
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