Madras High Court Bars ED Action in Tamil Nadu Sand Mining Case

In a significant development, the Madras High Court has intervened in the Enforcement Directorate’s (ED) actions against contractors and machinery suppliers involved in alleged illegal sand mining in Tamil Nadu. The court has ordered the ED to halt any further proceedings based on its Enforcement Case Information Report (ECIR) and has quashed provisional property attachment orders against the petitioners.

Legal Battle Unfolds

A division bench comprising Justices M S Ramesh and Sunder Mohan issued these directives following a batch of petitions filed by individuals, including contractors K Rethinam, P Karikalan, and S Ramachandran. These petitions sought to nullify the ECIR registered under the Prevention of Money Laundering Act (PMLA) on September 11, 2023.

Court’s Decision

Crucially, the bench ruled that offences under the Mines and Minerals Act, cited in the case, do not qualify as scheduled offences under the PMLA. Therefore, the ED was instructed to cease action against the petitioners until all statutory requirements are met.

Impact and Background

The Enforcement Directorate had alleged illegal sand mining amounting to Rs 4,730 crore and issued summonses to district collectors and various contractors. Earlier, the Madras High Court had stayed these summonses, describing the ED’s actions as a ‘fishing expedition’ lacking substantial evidence.

Supreme Court Intervention

Following appeals by the ED, the Supreme Court lifted the stay and directed officials to cooperate with the investigation. Subsequently, the affected contractors approached the Madras High Court seeking relief from the ECIR and property attachments.

Conclusion

This legal battle underscores the complexities and legal nuances involved in high-profile cases like illegal mining. The Madras High Court’s recent orders provide temporary relief to the accused parties while highlighting the need for thorough adherence to legal procedures in such investigations.