The Supreme Court on Monday quashed a money-laundering case against former Indian Administrative Service officer Anil Tuteja and his son Yash Tuteja in the alleged Rs 2,000-crore Chhattisgarh liquor scam, reported Live Law.
The Enforcement Directorate had initiated proceedings in the case under the Prevention of Money Laundering Act during the tenure of the previous Bhupesh Baghel-led Congress government in Chhattisgarh.
The central agency alleged that a syndicate comprising state government officials, politicians and other individuals had conspired to ensure that a state-run company procured liquor only from those who paid it a commission of Rs 75 per case of country liquor. It alleged that the syndicate pocketed more than Rs 2,000 crore that would have otherwise gone to the state exchequer.
Hearing the case on Monday, a bench of Justices Abhay Oka and Ujjal Bhuyan observed that there was no offence against Anil Tuteja and Yash Tuteja under the anti-money laundering law.
The top court said that the complaint on the basis of which the Enforcement Directorate initiated an investigation was based on an apparent offence under the Income Tax Act, reported Live Law.
The Enforcement Directorate’s first information report had also charged Tuteja and his son with an offence under section 120B (criminal conspiracy) of the Indian Penal Code. The bench, however, said that for criminal conspiracy to be treated as a scheduled offence in this case, the conspiracy needed to have been an offence under the Prevention of Money Laundering Act.
“Since there is no predicate offence, there are no proceeds of crime and a money laundering offence hence does not exist,” the court observed.
Additional Solicitor General SV Raju, appearing for the Enforcement Directorate, argued that it was premature to quash the complaints since a special court is yet to take cognisance of the case. The top court responded saying that this was “immaterial”, since the agency’s complaint is untenable as a money-laundering offence.
Former Chief Minister Bhupesh Baghel cited the ruling as evidence of the Bharatiya Janata Party-led Union government misusing central agencies to target Opposition-ruled states, reported PTI.
“Shameful political misuse of ED has been proved and the Modi government has been exposed,” the Congress leader said. “Today’s decision of the Supreme Court has proved that at the behest of BJP, the ED has been conspiring to defame the Opposition parties by making every case a case of money laundering.”
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!