The Supreme Court recently quashed an Enforcement Case Information Report (ECIR) against former Director General of Police (DGP) MS Jaffar Sait in a money laundering case. The apex court held that the Madras High Court made a mistake by rehearing the matter after previously allowing Sait's quashing petition without issuing any notice to the concerned parties.
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A bench comprising Justice Abhay S Oka and Justice Ujjal Bhuyan allowed Sait's appeal against the Madras High Court's decision to relist his petition. The Supreme Court also concluded the proceedings in Criminal OP No. 17762 of 2024, which was Sait's quashing petition before the High Court.
The Supreme Court criticized the Madras High Court for failing to follow basic principles of natural justice.
"If the division bench intended to recall the order, elementary principles of natural justice required the division bench to issue notice to the parties and especially the appellant calling upon him to show cause why the final order should not be recalled. It was inappropriate on the part of the division bench to have straightaway listed the petition for fresh hearing," the Court held.
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The Supreme Court also noted that since the predicate offence had already been quashed against all accused, the only viable option left was to quash the ECIR as well.
Background of the Case
The case against MS Jaffar Sait involved allegations of illegally acquiring a plot from the Tamil Nadu Housing Board in 2011. A corruption case filed by the Directorate of Vigilance and Anti-Corruption (DVAC), which served as the predicate offence for the money laundering case, was quashed by the Madras High Court in 2019.
Sait's quashing petition at the High Court challenged the ECIR filed by the Enforcement Directorate (ED) on June 22, 2020. The Madras High Court’s division bench, comprising Justice SM Subramaniam and Justice V Sivagnanam, initially quashed the ED's complaint on August 21, 2024. However, just two days later, on August 23, 2024, the same bench listed the case for re-hearing without notifying the parties, later reserving its judgment.
On September 6, 2024, the Supreme Court stayed the High Court proceedings and instructed the Registrar General of the Madras High Court to verify the case records. On September 30, 2024, the Supreme Court criticized the Madras High Court's conduct as “absolutely wrong.”
The Registrar General's report confirmed that the division bench had passed a final order on August 21, 2024, allowing the writ petition. However, the case was relisted on August 23, 2024, following oral instructions given on August 21, 2024.
"The petition was first allowed and then relisted for hearing. From the report of the Registrar General of the High Court we have no manner of doubt that the petition was allowed but the reasoned order was not uploaded," the Court observed.
The Supreme Court also clarified that if the order quashing the predicate offence is later overturned, the ED may apply for a recall of the Supreme Court’s order and seek restoration of the ECIR.
Senior Advocate Gopal Sankaranarayanan represented MS Jaffar Sait, while Advocate Zoheb Hossain appeared for the Enforcement Directorate.
Case no. – Diary No. 39548/2024
Case Title – MS Jaffar Sait v. Directorate of Enforcement
