ECIR On Case Against Goyal, Wife Quashed

According to a bench of justices Revati Mohite-Dere and Prithviraj K. Chavan, all pending proceedings and actions relating to the Goyals’ case were quashed because the investigation and proceedings emanating from the ECIR against him were illegal and contrary to law.

On 24 January, the division bench had granted interim relief of no coercive action till 31 January to Goyal and his wife pertaining to the money laundering case.

Goyal had filed a petition before high court seeking to quash the ECIR report . Goyals said that the ECIR “cannot be sustained" with regard to the mandate of the Prevention of Money Laundering Act, and will have to be quashed as is no predicate offence.

Back in February 2020, the ED took cognizance of an FIR lodged by MRA Marg police station in Mumbai, based on a complaint filed by travel agency Akbar Travels against Jet Airways, Naresh and wife. In 2021, a closure report was filed in the case and the court accepted it despite ED's opposition. Although the ED's counsel countered, the Court on Wednesday asked what would happen if the offence that led to the registration of an ECIR had been closed.

Karan Kadam, counsel appearing for Naresh Goyal said that "there is no predicate offence as required, for the probe agency to investigate the said ECIR."

Kadam also submitted that the complaint lodged with the MRA Marg Police Station, Mumbai had resulted in filing of a 'C' Summary Report by the police. Adding even the protest petition filed by the ED was rejected and that the said order has been confirmed by this Court as well as the Apex Court.

The order relies on various decisions of the Apex Court and Delhi High Court in similar matters where the position of law has been declared by the Courts and have held that when a person is finally discharged/acquitted of the scheduled offence or the criminal case against him is quashed by the Court Of competent jurisdiction, there can be no offence of money-laundering (scheduled offence) against him that survives.

On 21 February, court had asked the central agency as to why the case cannot be quashed as the scheduled offence has been already set aside by the court.