Mehaboob Allabaksh Dundasi Vs Directorate of Enforcement (Karnataka High Court)
The Karnataka High Court considered three connected petitions filed by a common petitioner challenging two predicate criminal proceedings under the IPC and one proceeding initiated by the Enforcement Directorate (ED) based on those predicate offences. The predicate offences arose from allegations that compensation for land acquired by the Karnataka Industrial Areas Development Board had been fraudulently disbursed a second time for the same lands through the alleged connivance of Board officials, landowners and other persons, resulting in wrongful disbursement of approximately Rs. 20 crore of public funds. The petitioner contended that he had no direct role in the alleged offences, that he was implicated only through statements of co-accused and a few witnesses, and that there was no incriminating material warranting continuation of the prosecution. He also argued that if the predicate offences were quashed, the ECIR and proceedings initiated by the Enforcement Directorate would automatically fail.
The High Court examined the charge sheets and investigation material and found that several witnesses had referred to the petitioner’s alleged involvement, including evidence relating to transactions and acquisition of assets. The Court observed that these allegations and supporting material gave rise to serious disputed questions of fact, which could only be examined during a full-fledged trial. The Court held that evaluating the reliability of witness statements, documentary evidence, and the petitioner’s defence at the stage of a petition under Section 482 CrPC would amount to conducting an impermissible mini-trial.
