The Telangana High Court has quashed the Enforcement Directorate (ED) proceedings against Max Mantena, an irrigation project construction company, in connection with a money laundering case. Justice M. Laxman, who presided over the matter, considered the action against Mantena a misuse of the law, taking into account the evidence and circumstances, IANS reported.
The court stated that if these proceedings continue, it would amount to perpetuating injustice against the petitioner. M.S. Raju, the promoter of the Mantena group, who was named as the prime accused by the ED, has been proven innocent.
The court observed that the ED had initiated this case based on an FIR related to the e-tender issued by the Economic Investigation Department (EOW) in Bhopal. However, the EOW's own case could not be substantiated. It is worth noting that all the accused in the e-tender case had been acquitted by the trial court.
Justice Laxman wrote in the judgement dated August 8 that despite the ED's suspicion of rigging in the e-tender since 2016, involving an amount of Rs 80,000 crore, no evidence was found to support this claim. No tampering in the e-tender case has been proven to the extent that it could be believed that any criminal income was obtained.
The Judge emphasised that only property (money) acquired directly or indirectly through a crime can be considered criminal proceeds.
"To establish the proceeds of a crime, it must first be proven that a crime occurred. Adequate grounds must exist to bring any money or property under the purview of the Hawala Act (PML Act). Mere suspicion cannot be the basis for belief."
The High Court emphasised that in this case, the underlying crime itself was not proven.
The ED’s claims were rooted in FIR, dated April 10, 2019, filed by the EOW Bhopal, alleging unauthorized access and manipulation of e-tender processes. The case pertained to an irrigation department tender worth Rs 1,030 crore, in which Max Mantena had participated. While the ED alleged the misuse of digital signatures and tender rigging amounting to Rs 80,000 crore since 2016, the court concluded that these claims lacked adequate substantiation. Nevertheless, the ED registered the current case under the Hawala Act based on these suspicions and materials. The EOW filed two charge sheets, and the trial court acquitted all the accused, a decision that went unchallenged. As a result, the acquittal order has been finalised.
The ED also failed to present any evidence supporting its claims of alleged scams after 2016, nor did it request a comprehensive investigation. This led petitioner Max Mantena to seek the quashing of the ED's case before the Telangana High Court.
The High Court has now clarified that any petitions related to this matter should cease.