Madras HC directs ED to submit DVAC FIRs justifying Tasmac raids under PMLA
The Madras High Court has directed the enforcement directorate to submit the copies of the FIR registered by the directorate of vigilance and anti-corruption (DVAC) which formed basis for the central agency to hold the search and seizure from the premises of the Tamil Nadu State Marketing Corporation Limited (Tasmac) under the Prevention of the Money Laundering Act (PMLA).
The direction was issued by a division bench of justices SM Subramaniam and K Rajasekar on Tuesday while hearing the petitions filed by Tasmac and the state government against the recent ED raids. Asking the ED to submit the FIRs on Wednesday, the bench adjourned the hearing, accordingly.
Advocate General (AG) PS Raman, representing the state, and senior counsels Vikram Chaudhary and Vikas Singh, appearing for the Tasmac, questioned as to why the ED has not submitted the FIRs, which it stated formed the basis for the search and seizure, despite a direction issued already by the court.
“There are 42 FIRs registered since 2009. Which are the FIRs, based on which, the ED has proceeded,” asked the AG, adding that there is not a single FIR against the Tasmac.
Vikas Singh said the central agency is bound to furnish the copies of the FIR relating to the predicate offence to the accused persons in the case it has registered and so far, it has not done so.
“They say the Enforcement Case Information Report cannot be shared because it is an internal document but why can’t they furnish the FIRs which are the basis for the ED case,” he asked.
Chaudhary noted the ED has failed to follow the safeguards and mandate of the PMLA by not filing the documents related to the case with the adjudicating authority within the stipulated time frame.
“Non-compliance of section 17 (2) of PMLA, relating to sending the materials to the adjudicating authority within the stipulated time frame, vitiates action under section 17 (1) which authorises the authority to hold search and seizure,” he told the bench.
Chaudhary also said the ED had launched the probe and marched into the office of Tasmac but it had neither gone into the house of the accused persons in the case registered by the DVAC nor summoned them.