The Madras High Court has halted the Enforcement Directorate’s (ED) summons to five District Collectors in Tamil Nadu regarding an alleged money laundering investigation linked to illegal sand mining. The court has stayed the summons for three weeks, but has not halted the ED’s investigation. The Collectors and the state government have been given three weeks to respond to the ED’s queries.
The petition to invalidate the ED’s summons was filed by the state Public Department Secretary on behalf of the Collectors of Ariyalur, Vellore, Thanjavur, Karur, and Tiruchirapalli districts. The summons required the Collectors’ personal presence on different dates to provide information about sand mining operations within their jurisdictions. The ED issued these summons under the Prevention of Money Laundering Act (PMLA).
The petition argued that the ED’s extensive and arbitrary practice of summoning district collectors under the guise of conducting an investigation is unjust. The state government supported the petition, claiming that the ED does not have unlimited powers and that these summons go against the spirit of federalism.
The ED had alleged that illegal sand mining worth Rs 4,500 crore had taken place in Tamil Nadu, and it believed that the proceeds were laundered. It claimed to have the power to summon collectors and cited a survey by an expert from the Indian Institute of Technology (IIT) to support its claims. However, the judges had previously observed that the agency has limited powers.
The ruling DMK party accused the BJP of misusing central agencies like the ED to target political opponents in states ruled by the opposition. The DMK also highlighted the low conviction rate in ED cases. The BJP denied these allegations and stated that when those targeted join their party, they become “whitewashed saints overnight.”
Although this is an interim order, it is considered a significant political victory for the opposition. The issue is expected to escalate into a lengthy legal battle, with the ED likely to challenge the court’s decision.
