In a significant crackdown on environmental crime-linked financial fraud, the Enforcement Directorate (ED) has formally initiated legal proceedings against a prominent Punjab-based distillery and its promoters. The federal agency filed a prosecution complaint before the special Prevention of Money Laundering Act (PMLA) court in Jalandhar on Tuesday.
Charges and Accused in the Money Laundering Case
The complaint targets Malbros International Private Limited, a company controlled by the Malhotra family. Among the individuals named is Gautam Malhotra, the son of former Shiromani Akali Dal (SAD) legislator Deep Malhotra. Other related persons connected to the firm have also been implicated in the court documents.
This legal action stems from a protracted investigation into allegations that the company engaged in severe environmental damage to conceal its operational costs, thereby generating illicit profits.
The Core Environmental Crime and ED's Investigation
The money laundering probe originated from a criminal complaint filed by the Punjab Pollution Control Board (PPCB). The board accused Malbros International of blatantly violating the Water (Prevention and Control of Pollution) Act, 1974.
The primary allegation is that the company, operating a distillery near Zira, bypassed pollution treatment norms by persistently and covertly injecting untreated industrial effluents directly into deep aquifers. This was allegedly done using a method called reverse boring, which caused severe groundwater contamination while saving the company substantial waste treatment costs.
The ED stepped in to trace the proceeds of this crime. In a major move preceding Tuesday's complaint, the agency had provisionally attached immovable properties worth Rs 79.93 crore belonging to the company, alleging these assets were acquired with the proceeds of crime generated from evading environmental compliance.
Searches, Seizures, and Legal Path Ahead
The investigation saw aggressive action from the ED last year. On June 16, 2023, the agency conducted coordinated searches at six locations linked to the company and its directors. During these raids, authorities seized Rs 78.15 lakh in cash from the premises of the company and its directors.
The filing of the prosecution complaint (equivalent to a chargesheet) before the special PMLA court in Jalandhar marks the culmination of the ED's investigation phase. It now allows the court to take cognizance of the charges and proceed with the trial against the accused company and individuals.
This case highlights the increasing focus of central agencies on green crimes, treating environmental degradation not just as a regulatory violation but as a predicate offence for serious financial crimes like money laundering. The outcome will be closely watched by industries in the state and environmental regulators across the country.
