NGT Cannot Direct ED to Investigate, Rules Supreme Court
The Supreme Court has clarified that the National Green Tribunal (NGT) does not have the authority to direct the Enforcement Directorate (ED) to initiate proceedings under the Prevention of Money Laundering Act (PMLA) in cases related to alleged environmental violations.
A bench of Chief Justice D.Y. Chandrachud and Justice K. Vinod Chandran observed that the NGT Act, 2010, empowers the tribunal to deal with issues related to environmental protection and conservation of forests and natural resources, but not to order prosecution under money laundering laws. The power to initiate such proceedings, the court stated, rests only with PMLA courts and constitutional courts.
The ruling came in a case involving Seapol Gupta Export Ltd., where the NGT had ordered an ED probe. The Supreme Court struck down the order, adding that the NGT had no jurisdiction to make such a direction. The bench also set aside the penalty imposed on the company.
However, the court clarified that it was not ruling on whether any offence had actually been committed, as that determination fell outside the scope of the proceedings before it. The bench also noted that no First Information Report (FIR) had been registered in the matter.
Key Takeaways:
- Only PMLA courts or constitutional courts can order ED investigations.
- NGT’s jurisdiction is limited to environmental protection and conservation issues.
- Penalty imposed on the petitioner company has been cancelled.
