CHENNAI: The Madras High Court (MHC), on Tuesday, granted an interim stay on the summons issued by the Enforcement Directorate (ED) to five district collectors to investigate the alleged illegal sand mining in Tamil Nadu even as it allowed the central agency to proceed with the probe.

A division bench comprising Justices SS Sundar and Sundar Mohan granted the interim stay on the petition filed by state public department secretary K Nanthakumar. Directing the state government and the five district collectors to file their reply affidavit to the objection petition filed by the ED, the bench posted to December 21, further hearing of the case.

The ED, which is probing ‘illegal’ sand mining under the Prevention of Money Laundering Act apprised the court that it is in possession of credible scientific evidence. Such evidence established rampant illegal mining in the jurisdiction of various district collectors including the five officials to whom summons had been issued.

The bench said the ED can go ahead with its probe into the alleged sand mining in the state.

The ED has resorted to a ‘fishing and roving’ enquiry and issued summons to district collectors. Sand, a minor mineral, is a subject matter under the Constitution over which the state exercises exclusive power — K Nanthakumar, secretary - TN public department

‘Fishing and roving’ enquiry charge is an assumption and is false. On the contrary, the Directorate is in direct possession of enough crucial evidence of proceeds of crime generated out of criminal activity — ARL Sunderesan,

Additional Solicitor General (for ED)

Summons not within the agency’s jurisdiction, appear to be part of an attempt to investigate the possibility of identifying any proceeds of crime as a result of any activity not so far registered by the state authorities — Justices SS Sundar and Sundar Mohan,

Madras High Court

However, a Supreme Court order has laid out that under the Prevention of Money Laundering Act (PMLA), the ED cannot prosecute an offence unless “proceeds of crime”, as defined under the Act, exist.

The top public department official filed the plea on behalf of the district collectors of Ariyalur, Vellore, Thanjavur, Karur and Tiruchy. The petition sought to quash the summons issued by the ED which asked them to appear in person on various dates with details related to sand mining in their respective districts.

On November 27, the bench reserved orders, after hearing arguments of senior advocate Dushyant Dave, appearing for the state government and Additional Solicitor General ARL Sunderesan for the central agency.