Uttarakhand High Court stays ED order to attach property linked to Congress leader

The Uttarakhand High Court on Friday stayed a provisional attachment order issued by the Enforcement Directorate (ED) against 101 Bighas of land worth over 70 crore of Shrimati Poorna Devi Memorial Trust, which runs the Doon Institute of Medical Sciences [Shrimati Poorna Devi Memorial Trust Versus State Of Uttarakhand].According to the ED, the trust is controlled by the family and friends of Harak Singh Rawat, who is a Congress leader and was previously a minister in the BJP government. The action was taken by ED under the Prevention of Money Laundering Act (PMLA) on January 20. The central agency has alleged that the Congress leader’s wife Deepti Rawat purchased the land in Dehradun at an insignificant amount as part of a conspiracy..Dealing with the trust’s petition challenging the action, Justice Pankaj Purohit observed that there was prima facie a non-compliance with Section 5(1)(b) of PMLA, which requires a reasoned belief that the property in question is likely to be concealed or transferred in a manner that could frustrate confiscation proceedings. The Court said that a provisional attachment order could not have been issued without satisfying Section (1)(b) of PMLA.“From the reading of the impugned order, it is reflected that the first ingredient contained in Section 5(1)(a) of Act of 2002 is made out, but so far as the provision of Section 5(1)(b) of Act of 2002 is concerned, it is nowhere reflected from the order impugned that there is reason to believe to the respondent-Deputy Director, Enforcement Directorate, that the property in-question, is likely to be concealed, transferred or dealt with in any manner which may result in frustrating any proceedings relating to confiscation of such proceeds of crime under this Chapter,” it added..The Court rejected the argument that petition was not maintainable and said the matter requires deliberation. It directed the ED to file a counter affidavit within two weeks and listed the matter for hearing on May 14.“Till the next date of listing, effect and operation of the impugned Provisional Attachment Order No.01 of 2025 dated 20.01.2025 issued by the Deputy Director Enforcement Directorate, Dehradun, shall remain stayed,” the Court ordered..Advocates Shaurya Dhoundiyal and Priyanshu Gairola represented the petitioner. Advocates SC Dumka and SB Dobhal represented the State of Uttarakhand. Advocate Monika Pant represented the ED..[Read Order]