The Delhi High Court issued notice on the ED's plea to remove a trial court's remarks in the Delhi Excise Policy case. The HC observed the remarks were prima facie "foundationally misconceived" as the ED was not a party to the proceedings.
The Delhi High Court on Tuesday issued notice on a plea filed by the Enforcement Directorate seeking the expunging of certain observations made against the agency in a trial court order related to the Delhi Excise Policy case. The court, after hearing submissions, indicated that it would pass an order on the plea.
The matter was heard by Justice Swarana Kanta Sharma, who noted that the remarks recorded against the ED appeared prima facie "foundationally misconceived", particularly when such observations were made at the stage of considering discharge applications. The court also observed that the ED was not a party before the trial court when the comments concerning its investigation were made.
ED Challenges Trial Court Order
The ED has approached the High Court seeking deletion of several paragraphs from the February 27, 2026 order of the trial court that discharged 23 accused persons in the case registered by the Central Bureau of Investigation in connection with alleged irregularities in the formulation and implementation of the Delhi Excise Policy 2021-22.
Courtroom Submissions
Appearing for the ED, Additional Solicitor General SV Raju submitted that the trial court had made sweeping observations regarding the ED's investigation under the Prevention of Money Laundering Act even though the agency was not a party to the proceedings and had no opportunity to present its case. He argued that the remarks were recorded while deciding discharge applications in the CBI case and therefore fell outside the scope of issues before the trial court.
Senior Advocate Vikram Chaudhari, appearing in the matter, made submissions opposing the ED's plea. He submitted that the observations made by the trial court formed part of its reasoning while examining the overall circumstances surrounding the case and therefore could not be selectively removed. He further contended that the trial court had considered the material placed before it and the remarks were part of its analysis while deciding the discharge applications.
Grounds for ED's Plea
The ED, however, argued that the impugned observations amounted to unwarranted criticism of the agency's investigation and could prejudice the ongoing money laundering proceedings being conducted under the PMLA.
The agency has contended that the trial court, while deciding the discharge applications in the CBI case, went beyond the scope of the proceedings and made extensive comments on the functioning and powers of the ED without examining the material collected by it.
The petition, filed under Section 528 of the Bharatiya Nagarik Suraksha Sanhita (earlier Section 482 of the Code of Criminal Procedure), seeks expunging of several paragraphs of the trial court's order, including paragraphs 109, 1048 to 1052, 1062, 1083, 1106 and 1124 to 1132.
According to the ED, the remarks were recorded "behind the back" of the agency and violate the principles of natural justice.
The ED has also objected to certain observations in the order relating to arrests and prosecution under the PMLA and remarks suggesting that investigative agencies should not enter the "electoral arena" in matters relating to alleged illegal funding or campaign expenditure, which it says were unnecessary for deciding the discharge applications.
Relying on the judgment of the Supreme Court of India in Vijay Madanlal Choudhary v. Union of India, the ED has argued that the offence of money laundering is an independent offence and that investigation under the PMLA can proceed irrespective of the stage of investigation or trial in the predicate offence.
After hearing the submissions of the parties, the High Court issued notice in the matter and stated that an order would be passed on the ED's plea. (ANI)
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