ED cannot invoke provisions of PML Act with retrospective effect: Karnataka HC [Read Judgment]

The Karnataka High Court earlier this week held that the Enforcement Directorate (ED) cannot retrospectively invoke provisions of the Prevention of Money Laundering Act, 2002..A Bench of Chief Justice SK Mukherjee and RB Budihal on Monday allowed writ petitions challenging Enforcement Case Information Reports (ECIRs) issued by the ED in connection with alleged illegal mining..It was alleged in the ECIRs that the first petitioner had acquired 17.59 lakh MT of iron ore by extracting the same from outside the leased area, thereby committing offences under Sections 120B, 420, 411 of the Indian Penal Code and Section 13 of Prevention of Corruption Act..Senior Advocate Sudhir Nandrajog, appearing for the petitioners, argued that the offences were alleged to have been committed between June 21, 2007 and May 15, 2009. This, he argued, was before the amendment which brought these offences under the ambit of the PML Act came into force. This amendment came into force on June 1, 2009..Assistant Solicitor General Krishna Dixit, appearing for the respondents argued that the offences alleged are all civil in nature, and therefore PML Act could be invoked with retrospective effect..However, the Bench agreed with Nandrajog’s submissions, and held that the allegations were liable to be quashed, and that the ED could not have invoked the provisions of the Act retrospectively. The Bench held,.“This would would deny the writ petitioner the protection provided under clause (1) of Article 20 of the Constitution of India. Article 20 of the Constitution of India prohibits the conviction of a person or his being subjected to penalty for ex-post facto laws.”.Further, the Bench held,.“An ECIR can, only, be registered once there has been a conviction and a judicial conclusion has been arrived at as to the quantum of proceeds of that crime. It is only upon a conviction by a trial court in the predicate offence the accused could be investigated upon accordingly.”.Read the judgment:

ED cannot invoke provisions of PML Act with retrospective effect: Karnataka HC [Read Judgment]

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