Srinagar, Mar 02: The Court of Chief Judicial Magistrate (CJM) Srinagar has dismissed an application filed by the Directorate of Enforcement (ED) seeking modification of charges in a case investigated and prosecuted by the Central Bureau of Investigation (CBI).
The court observed that the ED has no locus standi to seek, as it sought addition of Sections 411 and 414 IPC in the case titled CBI vs. Mohammad Saleem Khan & Ors.
During the proceedings, Farhat Zia Soharwardy, CGSC, UOI and Special Public Prosecutor for the Central Bureau of Investigation, represented the CBI.
The case pertains to FIR No. 05/2015 registered by the CBI under Sections 120-B, 406 and 409 of the Ranbir Penal Code (RPC). The accused include Mohammad Saleem Khan, Ahsan Ahmad Mirza, Bashir Ahmad Misgar and Dr. Farooq Abdullah, while two accused have already been granted pardon during trial.
The ED had moved an application in terms of liberty granted by the High Court of J&K and Ladakh, seeking addition of offences by invoking powers under Section 216 CrPC. However, the court observed that the ED is neither the investigating agency nor the prosecuting agency in the instant case and cannot assume the role of investigating authority regarding predicate offences.
The court held that the essential ingredient for the ED to exercise jurisdiction under the Prevention of Money Laundering Act (PMLA) is the existence of a scheduled (predicate) offence, which must be investigated and established by a competent agency. Since the CBI did not incorporate any such offence in its charge sheet, the ED cannot suo motu seek addition of charges.
The court also noted that the application filed by the ED was vague and sought contradictory reliefs, at places referring to IPC provisions that stand repealed with effect from July 1, 2024.
Relying upon judicial precedents including Vijay Madanlal v. Union of India and M/S Prakash Industries Limited v. Union of India, the court observed that the ED cannot presume commission of a predicate offence and initiate action on that basis.
Accordingly, the application filed by the ED was dismissed.
Meanwhile, after hearing arguments on charge and discharge, the court found that a prima facie case is made out under Sections 120-B, 406 and 409 RPC against the accused persons. The court directed that charges be framed and listed the matter for March 12, 2026. Statements of the approvers will be recorded after framing of charges.
