Bombay High Court Penalizes Enforcement Directorate for Overreach in Realty Case

The Bombay High Court has imposed a penalty of ₹1 lakh on the Enforcement Directorate (ED) for initiating a money laundering investigation against real estate developer Rakesh Jain without adequate justification. Justice Milind Jadhav emphasized that central agencies must adhere strictly to legal protocols and avoid actions that could be perceived as harassment of citizens.

The court nullified the proceedings initiated by a special court in August 2014, which were based on a prosecution complaint filed by the ED against Jain. The origin of the ED's investigation was a complaint lodged at Vile Parle police station by a property purchaser, alleging breach of agreement and cheating by Jain. However, Justice Jadhav observed that the allegations did not substantiate a case under the Prevention of Money Laundering Act (PMLA), thereby rendering the ED's actions unwarranted.