Madras High Court Critiques ED's Role in RKM Powergen Case

The Madras High Court has leveled criticism against the Enforcement Directorate (ED) for overreaching in a case involving RKM Powergen Private Ltd. The court highlighted that the ED should not act as an omnipotent authority beyond its designated jurisdiction.

In a session presided over by Justices M S Ramesh and V Lakshminarayanan, the court reviewed a plea filed by RKM Powergen against the seizure of Rs 901 crore by the ED. This action was initially based on a 2014 CBI FIR concerning coal block allocations for a Chhattisgarh power plant.

The judges emphasized that, per Section 66(2) of the PMLA, the ED must defer to appropriate investigative agencies when encountering violations outside its mandate. The ED cannot pursue these investigations independently unless there's evidence of a predicate offence.

(With inputs from agencies.)