The Mumbai-based mortgage lender had approached the court with the contention that the central agency had continued its proceedings with the Enforcement Case Information Report (ECIR), despite the fact that the First Information Report (ECIR) was filed.FIR), on which the former was based, was already struck down by the Bombay High Court on May 4, 2022.
“It is the case of the petitioners… that the various petitioners in the respective writ petitions are not even accused in the said FIR and, therefore, there is no predicament and, therefore, the question of setting aside the said ECIR does not arise against them, “A division bench of Justices Mukta Gupta and Anish Dayal said in the 28-page order.
The court was hearing 10 petitioners who wanted to quash the ED proceedings.
On May 4, the Bombay High Court allowed Indiabulls Housing Finance’s plea to quash an FIR lodged against the company by one of its shareholders, alleging theft of funds. The court had also quashed the magistrate’s order to initiate action against the company, while allowing the plea for quashing of the FIR.
However, the ED continued its proceedings against Indiabulls Housing Finance and its employees based on that FIR.
Senior advocates Kapil Sibal, Mahesh Jethmalani and Vikram Nankani, appearing for the company and its employees, argued that the ED proceedings emanated from an FIR lodged at Palghar police station in Maharashtra on the complaint of one of its shareholders.
However, since that FIR was quashed, the petitioners were included in the ECIR by the ED without any underlying offense against them.
Countering this, Additional Solicitor General SV Raju, appearing for the ED, argued that the FIR still stands as it has been quashed in respect of the petitioners only – and not as a whole.