The Supreme Court questions Tamil Nadu’s writ petition challenging Enforcement Directorate’s summons to district collectors in a money-laundering case. Justices express concern over state’s involvement, emphasize individual challenges. Next hearing set for February 26 in the alleged sand mining scam case.
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NEW DELHI: On 23rd February, the Supreme Court has raised questions regarding the State of Tamil Nadu’s filing of a writ petition before the Madras High Court challenging the Enforcement Directorate’s (ED) summons to five district collectors in connection with a money-laundering case. Justices Bela M Trivedi and Pankaj Mithal expressed their concerns, questioning the legitimacy of the state’s intervention in the matter.
The bench emphasized that the district collectors themselves could have challenged the summons in their personal capacity, as government servants are duty-bound to respond to such summons and cooperate with investigations.
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Justice Trivedi remarked-
“How State can file writ petition? Under which law? Against the ED? How State is interested and can file such petitions? … District collectors can file in individual capacity. Government servants have to respond. How can you say you will not?! ED can probe with regard to scheduled offences as per Section 50 (PMLA).”
The summons under scrutiny were issued in connection with the ED’s probe into an alleged illegal sand mining scam in Tamil Nadu. In November 2023, the Madras High Court issued an interim order staying the operation of these summons, prompting the ED to appeal the decision before the Supreme Court.
While the Supreme Court initially expressed inclination to lift the High Court’s interim stay, it eventually issued notice in the matter. The Court has sought responses from both the Tamil Nadu government and the five district collectors involved. The case is scheduled to be heard on Monday, February 26.
Representing the ED before the Supreme Court, Additional Solicitor General SV Raju argued for the removal of the stay. On the other side, Senior Advocates Mukul Rohatgi and Amit Anand Tiwari appeared for the Tamil Nadu government and the district collectors, respectively.
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Rohatgi argued that the district collectors are entitled to seek relief in court, similar to how the ED has filed petitions against the Tamil Nadu government, asserting that the collectors are not involved in any criminal activities.
“Order was passed in November. We are in February. They are not involved, and not supposed to cooperate if the ED acts without jurisdiction. This is an issue of federalism!”
– Rohatgi submitted.
Tiwari added that the ED’s summons did not allude to a criminal or scheduled offence, raising concerns about the jurisdiction of the investigation.
He stated-
“The ED’s summons did not allude to a criminal or scheduled offence.”
In November 2023, the Tamil Nadu government and the five collectors jointly filed ten writ petitions challenging the ED’s summons and its authority to investigate such offences without the consent of the State government. The High Court, in its opinion, considered the ED’s summons as part of a “fishing expedition” suggesting that the ED had no jurisdiction to issue summons to any of the State’s district collectors. However, the High Court clarified that it had not imposed any stay on the ED’s ongoing investigation in the case.
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The High Court had also dismissed objections raised by the ED regarding the locus standi of the Tamil Nadu government to file a petition challenging the ED’s issuance of summons.
