Tue Jan 21 17:16:18 UTC 2025: ## Bombay High Court Fines ED Rs 1 Lakh for Improper Money Laundering Probe

**Mumbai, [Date]** – The Bombay High Court today levied a Rs 1 lakh fine on the Enforcement Directorate (ED) for launching a money laundering investigation against a Mumbai-based real estate developer, Rakesh Jain, without sufficient justification. The court deemed the ED’s actions an instance of harassment and a misuse of the Prevention of Money Laundering Act (PMLA).

Justice Milind Jadhav, in a strongly worded judgment, criticized the ED for initiating the probe based solely on a police complaint alleging breach of contract and cheating. The court found no evidence to support money laundering charges against Jain, quashing the summons issued by a special court in 2014.

Justice Jadhav emphasized the need to deter central agencies from exceeding their authority and harassing citizens. He described the actions of both the complainant and the ED as “malafide” and warranting exemplary costs. The judge stated that a money laundering offense requires a deliberate design and motive to illegally enhance gains, a factor absent in Jain’s case. The court characterized the case as “oppression in the garb of implementing the PMLA.”

In addition to the fine imposed on the ED, the court also fined the original complainant Rs 1 lakh. Both fines are to be paid to respective law libraries within four weeks.

The ED has been granted a one-week stay on the judgment to allow for a potential appeal to the Supreme Court.

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