The Supreme Court on Wednesday quashed the Enforcement Case Information Report (ECIR) registered against retired Indian Police Service (IPS) officer MS Jaffar Sait, thereby ending the money laundering proceedings initiated against him by the Enforcement Directorate (ED).
A Bench comprising Justices Abhay S Oka and Ujjal Bhuyan noted procedural lapses in the Madras High Court’s handling of the case. The Division Bench of the High Court had quashed the ECIR on August 21, 2024, after the ED conceded that the predicate offence—necessary for a money laundering charge under the Prevention of Money Laundering Act (PMLA)—had already been quashed in 2019. However, the matter was listed for re-hearing just two days later, on August 23, without formally notifying the involved parties.
The Supreme Court, which had stayed the High Court’s subsequent order on September 6, 2024, sought a report from the Registrar General of the Madras High Court to examine the irregularities. The report confirmed that a final order was indeed passed on August 21 and only oral directions had been given to relist the case.
Criticising the procedural lapse, the apex court stated: “Elementary principles of natural justice required the Bench to issue notice to the parties, especially the appellant, to show cause as to why the final order should not be recalled.”
The case against Sait, linked to the alleged illegal acquisition of a Tamil Nadu Housing Board plot in 2011, was initially filed by the Directorate of Vigilance and Anti-Corruption (DVAC). With that corruption case already quashed, the Supreme Court ruled there was no basis to maintain the ECIR.
However, the Court clarified that the ED could seek restoration of the ECIR if the order quashing the predicate offence is reversed in the future.
Senior Advocate Gopal Sankarnarayanan represented Sait, while Advocate Zoheb Hossain appeared for the ED.
