Is The Enforcement Directorate Entitled To Maintain Writ Petition Against State Government: Kerala HC

CASE BACKGROUND

• Under the Prevention of Money Laundering Act, on Wednesday, the High Court of Kerala held that the State Government, in spite of being a statutory body, can prefer a writ petition by the Enforcement Directorate.
• This observation was made under a plea filed which challenged the state’s notification under Article 226 of the Indian Constitution.
• It consisted of requesting the judicial commission to look into a series of allegations of falsified statements which were implicating that the Chief Minister was involved in the gold smuggling case.

QUESTIONS RAISED

• Tushar Mehta, the Solicitor General of India, appeared and submitted on behalf of the petitioner that subject matter of the inquiry being relevant to the entries reckoned into List-I of the Seventh Schedule to the Constitution, hence, the State becomes incompetent to order an inquiry under the same section.
• It was in this manner contended that State's order dated 7th May 2021 was inacceptable for the explanation that only the Central Government could establish a legal commission.
• The State contended that the Enforcement Directorate is just a Department of the Central Government, and a Department of the Center can't record a writ appeal, for it is anything but a juristic individual which can sue or be sued, depending on the choice delivered by the Supreme Court.
• Assaulting the viability of the appeal, the State additionally presented that in case it is a situation where the Center is bothered by the reproved notice, it can approach under Article 131 of the Constitution.

CASE PERCEPTIONS

• The Court concurred with the State that the ED is a legal body set up by the Central Government under Section 36 of the Foreign Exchange Management Act, 1999.
• Also, the Bench noticed that in the very choice referred to by the State to dismiss the practicality of the request, the Supreme Court had explained that where an authority under the Government, going as a legal position sues or seeks after additional procedures in its name, it won't be a suit or procedure by the State/Union of India, but by the legal authority thus.
• Along these lines, the appeal was conceded, and interim relief was allowed to the Directorate.

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