Issue at Core
- Allegation: ED sealed private premises (residence + office) when locked, during a search attempt.
- Legal Question: Does the PMLA empower ED to bar access to private property in absence of actual search or seizure?
Relevance : GS 2(Separation of Powers), GS 4(Ethics – Probity ,Transparency)
Judicial Concerns
- Judicial Satire on Executive Expansion:
Justice M.S. Ramesh noted that it is ED officials who are “evolving“, not just the law (PMLA). - Lack of Statutory Basis:
- Court questioned which provision of PMLA permits “sealing” of locked premises.
- Notices pasted by ED amounted to de facto sealing – citizens couldn’t re-enter their homes without fear of action.
- Violation of Rights:
- Right to Residence & Livelihood (Art. 21) under threat when access to private premises is restricted without due process.
Legal & Constitutional Principles
- PMLA, 2002 – Section 17:
- Permits search and seizure; breaking open locks is allowed.
- But no explicit provision for sealing locked premises without executing a search.
- Due Process Doctrine:
- Any infringement of property or liberty must be just, fair, and reasonable.
- Notices threatening re-entry without permission fail the test of procedural fairness.
Governance & Accountability Angle
- Executive Overreach:
- Raises red flags about the unchecked discretionary powers of investigative agencies.
- Need for Institutional Boundaries:
- Agencies must operate within legislative limits; judicial oversight acts as a vital safeguard.
- Public Trust in Rule of Law:
- Arbitrary sealing or coercive tactics may erode faith in legal institutions.
Quick Revision on ED:
Enforcement Directorate (ED) – Key Points
- Established: 1956 (as ‘Enforcement Unit’ under Department of Economic Affairs).
- Current Parent Ministry: Department of Revenue, Ministry of Finance.
- Mandate: Enforces economic laws and combats financial crimes.
Major Laws Administered
- Foreign Exchange Management Act (FEMA), 1999 – civil law.
- Prevention of Money Laundering Act (PMLA), 2002 – criminal law.
Functions
- Investigation of offences related to:
- Money laundering
- Foreign exchange violations
- Attachment/confiscation of property derived from crime.
- Prosecution of offenders under PMLA.
Powers under PMLA
- Search, seizure, arrest, and attachment of property.
- Can conduct raids, freeze assets, and file prosecution complaints in special PMLA courts.
- Needs “reasons to believe” recorded in writing.
