The Supreme Court issued a stern rebuke to five district magistrates of Tamil Nadu for their failure to appear before the Enforcement Directorate (ED) as directed in connection with an illegal sand mining case. The apex court fixed April 25 as the deadline for the collectors to respond to the ED’s summons.
A bench comprising Justices Bela M Trivedi and Pankaj Mithal expressed strong disapproval of the officers’ non-compliance, condemning their cavalier approach towards the court’s directives. The ED had issued fresh summons to the district collectors on March 1, but instead of appearing, they sent replies seeking postponement, citing their engagement with election-related duties ahead of the Lok Sabha elections.
During the hearing, the DMK government informed the court that the collectors were occupied with poll duties as their respective districts were scheduled to go to polls on April 19. However, the bench expressed dissatisfaction with this explanation, asserting that the officers’ disregard for the court’s order demonstrated a lack of respect for the judiciary, the law, and the Constitution of India.
The bench emphasised that the officers were expected to obey the court’s directive to appear before the ED in response to the summons. Their failure to do so, the court warned, would only lead to further complications for them. The bench strongly condemned such behaviour, underscoring the importance of upholding the rule of law and respecting the authority of the judiciary.
The Supreme Court on Tuesday pulled up five district collectors of Tamil Nadu for not appearing physically before the Enforcement Directorate despite orders in a money laundering probe in connection with alleged illegal sand mining.https://t.co/KMyFwOJQ40
— The Siasat Daily (@TheSiasatDaily) April 2, 2024
The apex court, on February 27, clarified that under Section 50 of the Prevention of Money Laundering Act (PMLA), the ED possesses the authority to summon individuals for evidence or to produce records during investigations or proceedings under the Act.
In light of this, the Supreme Court lifted the stay on the summons issued to the district collectors and directed them to comply with the ED’s summons promptly. The court’s ruling underscores the importance of respecting and responding to ED summons, highlighting the seriousness of the investigation into the alleged sand mining scam.
The Supreme Court’s observations are expected to have far-reaching implications for similar cases, particularly those involving challenges to ED summons. The court’s stance on the matter is likely to set a precedent for future legal proceedings involving the enforcement agency’s investigative powers.
The case stemmed from a challenge by the Tamil Nadu government before the Madras High Court against the ED’s summons to the district collectors. A division bench of the High Court had stayed the summons, prompting the ED to challenge this interim order before the Supreme Court.
The Supreme Court’s questioning of the Tamil Nadu government’s decision to file a writ petition before the Madras High Court further underscored the gravity of the situation. The court’s rebuke indicated its displeasure with attempts to impede the ED’s investigation into the alleged money laundering case.
The Madras High Court, in a significant development, stayed the operation of ED’s summons to district collectors of Ariyalur, Karur, Vellore, Thanjavur, and Tiruchi districts. A bench of Justices S.S. Sundar and Sunder Mohan expressed reservations regarding the jurisdiction of the ED to issue such summons, describing them as a “fishing expedition.” However, the court clarified that its interim order did not impede the ED’s ongoing investigation into the case.
The ED, in its defence, argued that approximately 24 lakh units of sand were illegally mined within a span of two years, amounting to a staggering Rs 4,730 crore. It accused the state government of obstructing the investigation into money laundering and proceeds of crime, citing FIRs registered across various districts. Furthermore, the ED highlighted the disparity between the permitted mining area and the actual impacted area, underscoring the extent of illegal sand mining activities.
The enforcement agency claimed to possess credible scientific evidence, including drone and LiDAR surveys, bathymetric surveys, and satellite imagery processing, indicating widespread illegal mining practices in Tamil Nadu. Seeking technical assistance from institutions such as the National Remote Sensing Centre, ISRO, and IIT-Kanpur, the ED emphasised the need for a comprehensive technical study to ascertain the full scope of illegal sand mining operations.
According to the ED’s estimates, the total value of illegally mined sand over the past year or two could amount to Rs 4,730 crore, significantly higher than the Rs 36.45 crore officially recorded. This revelation underscores the magnitude of the alleged scam and the urgent need for a thorough investigation and accountability.
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