The Enforcement Directorate has received the go-ahead for filing an appeal against a recent Karnataka High Court order quashing all the action taken against former State Minister G. Janardhana Reddy, his wife and two mining companies owned by them and the attachment of their assets worth ₹884 crore in a money laundering case.
In view of the order dated March 13, the Directorate had sought a legal opinion. It is learnt that the authorities concerned have now cleared the proposal to file the appeal.
The Karnataka High Court held that the Enforcement Case Information Report (ECIR) could be registered by the Directorate only when there was a conviction and a judicial conclusion had been arrived at as to the quantum of proceeds of that crime. It then quashed the action initiated against the writ petitioners. “It is only upon a conviction by a trial court in the predicate offence, the accused could be investigated upon accordingly. We, therefore, allow all these writ petitions and quash the action initiated against all these writ petitioners by the enforcement authorities,” it said.
