Supreme Court slams TN Collectors for not appearing before ED; orders them to appear after LS polls

The Supreme Court on Tuesday expressed strong disapproval at the conduct of District Collectors in Tamil Nadu who failed to adhere to the summons issued by Enforcement Directorate (ED) despite the top court directing them to appear before the central agency. [Directorate of Enforcement vs State of Tamil Nadu and ors]..A bench of Justices Bela M Trivedi and Pankaj Mithal said such a "cavalier attitude" cannot be typically tolerated.However, considering the schedule of upcoming Lok Sabha elections, the Court said they can appear after the polling is held in Tamil Nadu. "In our opinion, such cavalier approach and disdainful attitude of the District Collectors may land them into a difficult situation. When the Court had passed the order directing them to appear in response to the summons issued by the ED, they were expected to obey the said order and remain present before the ED. By not following the order, they have created an impression that they do not have respect either for the Court, or for the law, much less for the Constitution of India. Such an approach is strongly deprecated"."Since the learned senior counsel, Mr. Sibal, on instructions has stated that the respondents – District Collectors are collecting the data as desired to be furnished in response to the summons of the ED, from the concerned Offices and the Departments, we deem it appropriate to give them one more chance to appear before the ED in response to the summons issued by the ED under Section 50 of the PMLA".The Court asked the officers to remain present before the ED on April 25. While listing the matter for compliance on May 6, the Court warned of strict action in case of any further non-compliance. .The Court was hearing an appeal filed by the ED against the Madras High Court's decision to stay its summons to the five district collectors in Tamil Nadu in connection with a probe into an alleged sand mining scam.In its interim order, the High Court had opined that the ED's summons appeared to be part of a "fishing expedition", and that, prima facie, the ED had no jurisdiction to issue the summons to any of the State's district collectors.However, the High Court had clarified that it has not imposed any stay on ED’s ongoing investigation in the case.The High Court had also dismissed objections raised by the ED on whether the Tamil Nadu government had the locus standi to file a petition to challenge the ED's issue of summons.This order was then challenged before the Supreme Court.The Supreme Court had in February lifted the stay, and remarked that it was "strange" and "unusual" for the Tamil Nadu government to have moved the High Court challenging the ED summons in the first place.Pertinently, the bench had held that prima facie, under Section 50 of the Prevention of Money Laundering Act (PMLA), accused persons must respect and respond to summons issued by the ED, and appear as and when called to produce evidence in accordance with the law.Accordingly, in its order passed previously, the Supreme Court had directed that the district collectors summoned by the ED should appear before the central agency..During the hearing today, Senior Advocate Kapil Sibal, representing the Tamil Nadu government, said the officers were busy in connection with the upcoming Lok Sabha elections.It was also submitted that a review application had been moved against the order lifting the stay on summons issued to them by ED.However, the Court said such defiance of the direction to appear before the ED will land the officers in trouble. They should have respected the court order, it added"This kind of situation will land you in trouble," said the bench, adding the officers should have appeared before the central agency and helped it..However, Sibal said the State has already said they do not have the information being sought by the central agency."I do not understand why [it is] necessary when they have said they do not have data. What is the point of making them appear," he said, adding that the State was in the midst of elections.Observing that the officers have to comply with the ED summons, the Court then said they can appear after the Lok Sabha elections in Tamil Nadu..After the order was passed, Sibal submitted that even authorised agent can be sent on behalf of the officers."ED can call anybody then ... Not how we understand the law. Authorised agents can be sent."The Court in response said,"Yes they can. Read PMLA. You have been given sufficient time".Senior Counsel Amit Anand Tiwari also appeared for the State of Tamil Nadu. Advocate Zoheb Hussain appeared for the ED..[Read order]