In a case alleging financial irregularities on the part of Harish Fabiani and other officers of Indiabulls Housing Finance Limited (IHFL), the Delhi High Court on Monday barred the Directorate of Enforcement (ED) from initiating any coercive action against them [Harish Fabiani and Ors v. Enforcement Directorate and Ors].
In a case involving the ED's investigation into offences alleged in a first information report (FIR) filed at the Wada Police Station in Maharashtra's Palghar district, a Division Bench comprising Justices Siddharth Mridul and Anup Jairam Bhambhani issued the decision. Today, it was made clear that the protection is only being provided to officials who appeared before the Court in the current petition.
Even though the Palghar FIR was stayed by the Bombay High Court in April last year, the ED registered an Enforcement Case Information Report (ECIR) based on the same FIR and is continuing its probe, according to Fabiani and others.
The FIR was filed by one Ashutosh Kamble, who claimed to be one of IHFL's stockholders and alleged that the company's promoters and directors were involved in money laundering and accounting problems.
The Bombay High Court questioned the complainant's credibility and ordered a halt on all actions stemming from the FIR.
The ED has registered an ECIR based on which summons are being issued and a Look-Out Circular (LOC) has been opened against Fabiani, who is a non-resident Indian(NRI), according to Senior Advocate Rajiv Nayar, who is representing Fabiani and others.
The appeal has questioned the viability of various parts of the Prevention of Money Laundering Act (PMLA) that are currently pending before the Supreme Court, according to ED lawyer Amit Mahajan. As a result, the Bench in this matter should await the decision.
Despite Nayar's request for a stay on the LOC imposed against Fabiani, the Court denied the relief and sent notice to the ED and others on the ECIR's quashing.
The respondents have been given two weeks to submit their responses. After then, you have a week to file your counter-affidavit.
On March 16, the matter will be heard again.