Reach Dredging Limited Vs Directorate of Enforcement (Jammu & Kashmir High Court)
Summary: The Jammu & Kashmir and Ladakh High Court dismissed a petition filed by M/S Reach Dredging Limited challenging summons dated 17.09.2025 issued by the Directorate of Enforcement and the underlying proceedings, including the Enforcement Case Information Report (ECIR). The dispute arose from FIR No.7/2025 registered by Police Station, Anti-Corruption Bureau, on 18.04.2025 for offences under Section 5(1)(d) of the J&K Prevention of Corruption Act and Section 120-B of the RPC. The petitioner contended that the Enforcement Directorate could assume jurisdiction under the Prevention of Money Laundering Act, 2002 only where a scheduled offence existed and that Section 13(1)(d) of the Central Prevention of Corruption Act, 1988 ceased to have a corresponding provision in the Central Prevention of Corruption Act, 1988 after Section 13(1)(d) of the Central Act was omitted by the Prevention of Corruption (Amendment) Act, 2018.
The petitioner submitted that the alleged predicate offence was committed after the Letter of Intent was issued on 15.09.2018, whereas Section 13(1)(d) of the Central PC Act had already been omitted with effect from 26.07.2018. According to the petitioner, there was therefore no corresponding Central provision which could attract Section 2(2) of the PMLA and convert the offence under Section 5(1)(d) of the J&K PC Act into a scheduled offence. Consequently, it was argued that the ED lacked jurisdiction to register the ECIR or issue summons under Section 50 of the PMLA.
