The division bench of the Karnataka High Court recently ruled that the Enforcement Directorate (ED) cannot retrospectively invoke provisions of the Prevention of Money Laundering Act, 2002.
The division bench comprising of Chief Justice SK Mukherjee and Justice RB Budihal was hearing 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 s. 13 of Prevention of Corruption Act.
Before the High court, 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.
The respondents, on the other hand, argued that the offences alleged are all civil in nature, and therefore PML Act could be invoked with retrospective effect.
Allowing the writ petitions, the Bench held that the allegations were liable to be quashed, and that the ED could not have invoked the provisions of the Act retrospectively.
“This 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”, the bench said.
“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,” the bench also added.
Read the full text of the Judgment below.
