Team Blitz India
NEW DELHI: The Supreme Court observed on February 26 that all states governments are obligated to comply with federal laws, including the Prevention of Money Laundering Act (PMLA) and directed the Tamil Nadu Government to provide an explanation for its opposition to Enforcement Directorate’s (ED) investigation into alleged illegal sand mining in the state.
A state Government should assist the federal agency in looking into allegations of money laundering instead of countering it, observed Justices Bela M Trivedi and Pankaj Mithal.
“State Government officials should assist the ED if there are allegations of sand mining and money laundering…As a general proposition, we are saying if the state machinery is asked for help, it should do so in finding out if there are offences,” the Bench said.
The Bench was hearing an appeal filed by ED against the Madras High Court order passed in November 2023, staying the summons issued to five district collectors of the state in connection with alleged illegal sand mining. The high court passed the stay order after the state government filed a petition, complaining against ED’s summons to its officers.
Last week, the Bench pressed the MK Stalin government to justify how the state government was aggrieved by the summons to the district collectors by a Central agency that was looking into allegations of money laundering.
