ED withdraws press release against FIITJEE after Delhi High Court objection

The Enforcement Directorate (ED) recently told the Delhi High Court that it will withdraw its press release alleging that entrance coaching institute FIITJEE is engaged in large-scale fraud and ₹206 crores were recovered from it as proceeds of crime..ED’s counsel made the statement before Justice Purushaindra Kumar Kaurav on May 6 during the hearing of the plea filed by FIITJEE and its founders seeking, among other reliefs, quashing of the press release published on ED's website on April 26.“Mr [Anupam S] Sharma, learned counsel for respondent- Directorate of Enforcement, on instructions, submits that the Department shall take appropriate steps to withdraw the Press Release (PR) in question from the website without being any orders on the merits or conformity of the PR with Office Memorandum, 2010 or otherwise,” the Court recorded in its order as it disposed of the plea. .Notably, the High Court, in the previous hearing of the case on March 18, had made a prima facie observation that the press release cast “judgmental aspersions” on FIITJEE. Justice Kaurav had recorded that the Ministry of Home Affairs (MHA) memorandum of 2010 states that the police should not make opinionated or judgmental statements when briefing the media.On May 6, the ED said that it will withdraw the press release. .The ED’s press release alleged that FIITJEE had collected ₹206 crore as proceeds of crime without rendering any service, and that incriminating documents revealed a systematic scheme to siphon funds. It was FIITJEE’s case that the press release, based on a preliminary analysis report, was issued before any show-cause notice was issued to them. The coaching institute argued press release was widely shared in the media and it branded them “guilty in the public eye, amounting to a media trial”.“The fallout has been devastating – franchisees withdrew, banks refused loans, investors distanced themselves, employees were demoralised, students lost trust, and the Petitioners’ decades of goodwill were irreparably ravaged,” FIITJEE stated. .Senior Advocate Jayant Mehta, with advocates Shiv Sapra, Aviral Tripathi, Vanshay Kaul of Kochhar & Co, along with Malak Bhatt, Sudhir Katpalia, Dilip Arya, Sidhika Nagrath, Saahil Bahety and Chhavi Tokas, appeared for FIITJEE. Advocates Anupam S Sharrma, Harpreet Kalsi, Vashishth Rao, Abhiyant Singh, Amisha P Dash and Mayank Tyagi represented ED..[Read Order]