Supreme Court Flags “Disturbing Features” In ED's Arrest Of Ex-IAS Officer In Chhattisgarh Liquor Scam

The Supreme Court on Friday (December 6) highlighted “disturbing features” of the arrest of former IAS officer Anil Tuteja by the Enforcement Directorate (ED) in a money laundering case connection with the Chhattisgarh liquor scam and

A bench comprising Justice Abhay S. Oka and Justice Augustine George Masih noted that Tuteja was taken by ED from the ACB office, interrogated throughput the night and then shown as arrested only at 4 am in the morning.

“We must record a very disturbing feature of the case. The petitioner on the 20th of April 2024 around 4:30 p.m. was sitting in the ACB office at Raipur. Firstly, he was served summons directing him to appear before the ED at 12:00 p.m. Another summons was served while he was in the ACB office calling upon him to appear before the ED at 5:30 p.m. Thereafter he was taken to the office of ED in a van. He was questioned by ED all night and was shown as arrested at 4:00 a.m.”, the Court highlighted.

The Supreme Court had in October pulled up the ED over the manner in which Tuteja was summoned and arrested. Justice Oka had questioned the urgency shown by the ED in issuing multiple summonses and conducting an interrogation overnight, stating such practices were “unpardonable.”

Today, Additional Solicitor General (ASG) SV Raju informed the Court that remedial measures have been taken to prevent such practices. “The facts are glaring. However, learned ASG submits that remedial measures have been taken by the ED to ensure that such incidents are avoided. There is a press release to that effect issued on 29.10.2024”, the Court recorded.

The press release referred to a Bombay High Court judgment dated April 15, 2024, in Ram Kotumal Issrani v. Directorate of Enforcement. The court had directed the ED to issue internal guidelines regarding the timings for recording statements under Section 50 of the PMLA. The guidelines emphasize that statements should generally be recorded during office hours and discourage late-night interrogations, except in exceptional circumstances.

The Court also allowed Tuteja to withdraw his plea challenging the arrest, granting him liberty to apply for bail.

Senior Advocate Abhishek Manu Singhvi for Tuteja argued that the Supreme Court had previously quashed the prosecution complaint filed by the ED in the first Enforcement Case Information Report (ECIR) on April 8, 2024. He contended that the ED, three days later, registered a new ECIR based on the same set of facts and material. Singhvi stated, “They can't have new information in such a short time.”

Justice Oka questioned whether the ED could rely on the same material from the first ECIR, which had been quashed, to justify the registration of a second case.

ASG Raju submitted that during the investigation into the second ECIR, all relevant documents, including statements recorded under Section 50 of the PMLA, 2002, were obtained from the investigating officer of the first ECIR. He argued that material collected remains on record and can form the basis of further proceedings.

Justice Oka noted that the quashing of the first ECIR was based on the absence of a predicate offence. However, he said that the court was not determining the legality of the investigation but whether the arrest was illegal.

After arguments, Singhvi sought permission to withdraw the petition, stating he had a strong case for bail. The bench allowed the withdrawal with liberty to apply for bail and directed that the concerned court to give necessary priority to the bail applications.

Background

Tuteja is one of the accused in the Chhattisgarh Liquor Policy scam, which allegedly involved manipulation in liquor distribution and the collection of illegal commissions from distilleries. He had been granted anticipatory bail in 2020. The Enforcement Directorate also launched an investigation into related money laundering offenses under the Prevention of Money Laundering Act (PMLA), 2002. The Chhattisgarh High Court on August 20, 2024 had dismissed Tuteja's plea to quash the arrest.

Case no. – SLP(Crl) No. 12124/2024

Case Title – Anil Tuteja v. Union of India

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