MUMBAI: Bombay HC imposed exemplary cost of Rs 1 lakh on ED for abusing process of law and converting a civil dispute between two parties into a criminal case and invoking money laundering charges. HC said ED acted in a mala fide manner and levied an equal fine on the complainant in the case.
“There is no element of cheating as alleged by complainant or ED. If there is no cheating involved, there are no proceeds of crime,” HC said, allowing ED a time to challenge the decision in SC.
Complainant Gul Achhra purchased a premises in Malad from Rakesh Jain in 2007 for setting up a hotel. He entered into another agreement with Sadguru Enterprises for creating amenities for hotel & paid Rs 4.27 crore.
HC said there is nothing prohibiting a developer from entering into a sale agreement and allowing execution of a simultaneous deal for providing amenities in the same premises. The complainant referring to payment made to Sadguru, alleged that Jain purchased flats from this ‘proceeds of crime’.
A mere breach of promise, agreement or contract does not ipso facto constitute an offence of criminal breach of trust, HC said.
Achhra’s complaints with EOW and Malad police were not taken up as they said it was a civil dispute. He approached the magistrate court which directed cops to probe the case. HC noted that Achhra suppressed findings of EOW and Malad cops and wanted the case to be filed at Vile Parle. A series of legal fights on several counts subsequently ensued. HC said, The complainant was not deprived of his property, hence invoking a criminal case is a abuse of the process of law.”
