The Supreme Court on Tuesday set aside the Delhi High Court's order that had restrained the central government from taking action against lawyer Gautam Khaitan under provisions of Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
A bench headed by Justice NV Ramana in the top court directed the High Court to decide the matter afresh.
The Centre had challenged the May 16 order of the Delhi High Court which stated that the Black Money Act that came into force on April 1, 2016, could not be applied retrospectively. The judicature had refrained the central government and the Income Tax Department from taking any action at this stage against Khaitan under the provisions of the Act.
"We are of the opinion that the petitioner (Gautam Khaitan) has made out a good prima facie case for grant of interim relief," the Delhi High Court had said.
"In the prima facie, we find ourselves unable to agree with the submission made on behalf of the official respondents (Centre and Income tax department)," the Delhi High Court further stated.
Khaitan, who is one of the accused in the Rs 3,600 crore AgustaWestland VVIP chopper scam, had claimed that the Centre's notification declaring the date of enforcement of the Act as of July 1, 2015, was ultra vires the Act and hence null and void. He is currently out on bail.
The accused was arrested by the Enforcement Directorate pursuant to an investigation under the Act, on January 26. As per the prosecution, he had deposited nearly Rs. 6,000 crore in offshore accounts.
A charge sheet has also been filed against Khaitan, for violation of provisions under the Prevention of Money Laundering Act, 2002.
( With inputs from ANI )