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In a relief to former Minister for Secondary Education and Home of Uttar Pradesh Rangnath Mishra in a 2012 money laundering case, the bench of Justice Arvind Kumar Mishra and Justice Jayant Banerji of Allahabad High Court has stayed any coercive action, including attachment, by the Enforcement Directorate (ED) till the disposal of Mishra's appeals and stay applications by the AppellateTribunal.

Mishra was the Minister for Secondary Education and Home in the Mayawati government of Uttar Pradesh from 2007 to 2011.

The Court has also directed all the concerned parties to maintain status quo on the subject matter of attachment orders till Mishra's case is taken up for consideration by the Tribunal.

Mishra had filed a writ petition challenging ED's one order under Section 8(3) of the Prevention of Money Laundering Act, 2002 dated December 13, 2021 and the consequential notices for eviction. 

Mishra had alleged that against ED's earlier attachment and other orders an appeal is pending in the Appellate Tribunal, however, due to the non-functioning of the Tribunal at present, no order including hearing of the interim application has been passed.

He had mainly argued that because the tribunal is not working currently, therefore, the status quo should be maintained and no further action should be taken against him.

Mishra had also contended that ED's December 13 order was illegal because as per the provisions of the PMLA, the attachment proceedings should be completed within 180 days which had already over when the ED passed the impugned order.

Consequently, the court decided to direct for the status quo, without expressing any opinion on the merits of the rival contention of the parties. 

Furthermore, Mishra has been also directed not to create any third-party rights or create any lease/tenancy or any encumbrance in the disputed property.

After a complaint with the Lokayukta, a case of disproportionate assets was registered against Mishra by Vigilance in 2012. After which the ED had registered a case against him in August 2014 under the Money Laundering Act.

It was alleged that the former minister had declared his income as one crore 50 lakh 90 thousand 964 rupees and spent Rs 6 crore 25 lakh 73 thousand 925 rupees. As a result, in January 2020, ED had attached Mishra's Prayagaraj situated 2 properties worth Rs 5 crores. According to the ED, Mishra had made these properties in the name of himself and his family members in the year 2010 while being a minister in the government.

Cause Title: Rangnath Mishra and Anr. v. Directorate Enforcement, Ministry Of Finance, GOI and Anr.