Kashmir Impulse Desk
Srinagar, Aug 24
The High Court of Jammu and Kashmir and Ladakh has upheld the Enforcement Directorate’s jurisdiction to investigate a money-laundering case linked to alleged corruption in a dredging and construction project at Hokersar Wetland.
Justice Sanjay Dhar dismissed a petition by Reach Dredging Limited, which had challenged summons issued by the ED and the underlying Enforcement Case Information Report, finding no merit in the company’s plea.
The case stems from a 2018 tender issued for construction of a channel across Hokersar Wetland, including side-slope protection and dredging of drainage and escape channels. Reach Dredging was awarded the contract in 2019 after submitting the lowest bid and completed the work in 2020, according to the court record.
The Anti-Corruption Bureau subsequently registered a case under the J&K Prevention of Corruption Act and the Ranbir Penal Code.
The ED later summoned the company under the Prevention of Money Laundering Act.
Reach Dredging argued that the offence cited in the J&K corruption case was no longer a scheduled offence under the PMLA after amendments to the central anti-corruption law in 2018.
The ED argued that the relevant provision of the J&K law corresponded to Section 7 of the amended Prevention of Corruption Act, which remains a scheduled offence under the PMLA.
The High Court accepted the ED’s position, holding that the 2018 amendment did not remove the corresponding offence from the statutory framework.
It said the amended Section 7 covered conduct previously dealt with under the omitted provision.
