New Delhi, April 2 -- The Supreme Court on Tuesday affirmed the extensive authority of the Directorate of Enforcement (ED), stating that the central agency has the right to summon "anyone for any information". The statement was made in the context of the court's criticism of four District Collectors from Tamil Nadu for not personally responding to a summons from the ED, in relation to a money laundering investigation linked to alleged illicit sand mining.
The court has now instructed these officials to personally present themselves before the ED on April 25.
A bench of Justice Bela M Trivedi and Justice Pankaj Mithal criticised the officials for their "cavalier approach", indicating a lack of respect for the court, law, and the Constitution.
The bench expressed its disapproval, stating that such disregard for court orders could lead to serious consequences. They emphasised that the officials were expected to comply with the court's directive to respond to the ED's summons.
Senior advocates Kapil Sibal and Amit Anand Tiwari, representing the Tamil Nadu government, explained that the officials were preoccupied with maintaining public order and implementing social security schemes. They also mentioned the upcoming Lok Sabha elections in Tamil Nadu on April 19, which required the officials' attention.
However, the bench insisted that the officials should have made an appearance before the investigative agency and provided their reasons for non-compliance. They granted the officials one final chance to appear before the ED in relation to the money laundering investigation.
Justice Trivedi clarified that Section 50(2) of the PMLA empowers the ED to summon "any person" deemed necessary for providing evidence or producing records during "any investigation or proceeding" under the statute. Section 50(3) stipulates that the summoned individual is "bound to attend in person or through authorised agents" and is required to provide truthful statements and produce the necessary documents.
The court scheduled the case for hearing on May 6.
Previously, on February 27, the Supreme Court had ordered the five district collectors to appear before the ED as part of the ongoing investigation.
Last year, on November 28, the Madras High Court had put a stay on the summons issued by the central investigative agency, which had requested the presence of the district collectors of Vellore, Tiruchirappalli, Karur, Thanjavur, and Ariyalur for its ongoing probe. The ED had appealed to the Supreme Court against this order, arguing that the lack of cooperation was hindering its investigation.
The Supreme Court had subsequently suspended the high court's order that provided relief to the district collectors. It described the plea from Tamil Nadu and its officials as "strange and unusual", suggesting it could potentially obstruct the ED's investigation into the money laundering allegations related to the FIRs. with agency inputs
Published by HT Digital Content Services with permission from Millennium Post.