Calcutta HC turns down ED plea to freeze Rashmi Metaliks' assets

Kolkata, Aug 12

A single judge bench of the Calcutta High Court turned down the plea from the Enforcement Directorate (ED) to freeze the assets of Rashmi Metaliks Limited and also gave a clean chit to the company in a money laundering case filed against it by the central agency.

Calcutta High Court's single-judge bench of Justice Moushumi Bhattacharya observed that the ED raids in multiple premises of the company and subsequent freezing of bank deposits worth Rs 95 crore were conducted after seven years from the date on which all pending proceedings in the matter were stayed by the Supreme Court.

Justice Bhattacharya also observed that the impugned orders cannot be sustained either in law or in fact.

"This court is therefore inclined to hold that the ED could not have initiated any action against the petitioners during the subsistence of the order of stay of the pending proceedings against the petitioner no. 1 by the Supreme Court dated 14th December, 2015," Justice Bhattacharya's order said.

The single-judge bench also maintained that the prayer for stay made on behalf of the Enforcement Directorate was considered and refused given the findings and observations made in the judgment," read the court order.