 "Enforcement Directorate")
A court in Delhi on Tuesday said the Enforcement Directorate (ED) had overreached its powers by recording statements of doctors at private hospitals under Section 50 of the Prevention of Money Laundering Act, 2002 (PMLA) without any evidence of their involvement in money laundering activities.
According to a report by Bar and Bench, Special Judge (PC Act) Vishal Gogne of the Rouse Avenue Courts emphasised the importance of upholding the rule of law and protecting the rights of ordinary citizens against undue coercion by government agencies.
“As an agency answerable to the law and the courts, the ED cannot arrogate powers unto itself. While a government agency too is expected to be a votary of civil rights, the court will certainly not remain amiss in highlighting and rejecting an entirely high handed act of the ED,” said Judge Gogne.
Background of case: The court's observations were made in response to a plea filed by businessman Amit Katyal seeking an extension of interim bail.
While the court denied the extension of bail to Katyal, it strongly criticised the ED's conduct in recording statements of doctors from Apollo and Medanta Hospitals. The court emphasised that Section 50 of the PMLA has no application in verifying medical documents for interim bail proceedings and faulted the ED questioning private practitioners while avoiding government doctors.
Judge Gogne stated that citizens possess rights that must be upheld by the state. He cautioned against invoking arguments that undermine the constitutional framework and violate citizens' rights. The court also emphasised that while government agencies have a duty to uphold civil rights, they must not overstep their authority, particularly when dealing with law-abiding citizens.
Furthermore, the judge warned against the misuse of stringent laws and agencies, noting that they often end up targeting ordinary citizens rather than fulfilling their intended purpose. He criticised the ED's use of Section 50 of the PMLA against law-abiding doctors as a departure from the law's intended purpose, urging investigation agencies to exercise restraint and adhere to constitutional principles.
