TN moves HC against ED summons to district collectors

Chennai: Tamil Nadu government on Friday challenged the Enforcement Directorate’s (ED) summons to 10 district collectors over alleged irregularities in sand mining, saying the agency has no jurisdiction in this matter and the action is “illegal, arbitrary, and unconstitutional.”

The petitions filed on behalf of the district collectors, who have been issued individual summons by the ED after a comprehensive raids on sand mining quarries, opens yet another battle between the State and Union Governments.

The development also comes at a time at least two DMK Ministers – K Ponmudy, and Anitha R Radhakrishnan – are on the radar of the ED even as another Minister V Senthil Balaji is currently cooling his heels at the Puzhal Central Prison after he was arrested in a money laundering case.

Another minister, E V Velu, and Arakkonam MP S Jagathrakshakan have come under the radar of the Income Tax department in the last two months.

The petition filed by the government argued that as far as the investigation relating to money laundering in relation to a predicate offence arising out of and within the territorial limits of a state is concerned, an investigation without the consent of the concerned state is violative of basic structure of federalism and separation of powers.

“…therefore such enquiry, investigation etc by the Respondent (ED) can be carried out only at the request of the state agencies/ state government, or by or under the directions of the Hon'ble Constitutional courts,” the petition read.

The summons by the ED to the district collectors after the Chief Engineer of the Public Works Department (PWD) appeared before the ED in connection with the raids on sand quarries and properties related to its owners and contractors.

The government said it raises the issue of action taken by the authorities under the PMLA when they evidently lack jurisdiction to deal with the subject matter in question, namely mining leases for sand excavation.

“The petition raises serious issues as to why the powers are exercised under the PMLA act only in certain States in respect of alleged offences under the Mines and Minerals Act, especially minor Minerals, when no such action is initiated in other states - Gujarat, Maharashtra, Madhya Pradesh, and Uttar Pradesh,” the government asked.

The government also raised serious issues as to the misuse of the authority and the processes - purportedly taken under the PMLA - to pressurize and thereby demoralise the state administration from discharging their “functions and duties, without any just cause and reasons.”

The petition also accused the ED of adopting pick-and-choose approach, in violation of the principles of federalism, and called the summons as arbitrary, without jurisdiction and violative of Article 14 and Article 21 of the Constitution.