S. 50 PMLA not to be Invoked against Unsuspecting Citizens: Delhi Court reprimands ED, calls act “High-Handed”

The court said that Section 50 cannot be used for purposes unrelated to the collection of evidence or proceedings qua proceeds of crime
PMLA - Unsuspecting Citizens - Delhi Court - ED - High-Handed - taxscan

The Delhi Rouse Avenue Court criticized the Enforcement Directorate ( ED ) for its conduct, emphasizing that as an investigative body, it must abide by legal principles and avoid appearing overbearing towards ordinary citizens not under suspicion.

Special Judge Vishal Gogne of Rouse Avenue Court rebuked the ED for using Section 50 of the Prevention of Money Laundering Act (PMLA) to take statements from private doctors consulted by an accused, Amit Katyal, during his interim bail in a money laundering case, a move made to oppose Katyal’s plea for extending his bail.

The court clarified that Section 50 should only be utilized for evidence collection or proceedings related to crime proceeds. It highlighted the unfairness of subjecting private doctors, like those from Apollo Hospital and Medanta Hospital, to rigorous legal procedures without any evidence linking them to money laundering allegations against Katyal.

The court stressed the importance of upholding citizens’ rights and criticized any authoritarian approach that disregards civil liberties.

Furthermore, the court cautioned the ED against overstepping its authority and reminded it to respect court orders and exercise restraint in handling personal data, especially when unrelated to criminal proceedings.

The Judge also noted that while Katyal sought an extension of interim bail, his improved health status indicated that surrendering was appropriate, denying his plea for further extension.

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