New Delhi: The family of a Mumbai businessman who died during an Enforcement Directorate (ED) raid at his office has not alleged foul play, ThePrint has learnt. The post-mortem report is awaited but, according to the police, it appeared to be a case of cardiac arrest.
On Friday, Dinesh Nandwana, the promoter and chairman of Mumbai-based firm Vakrangee, died when a team from the anti-money laundering agency was carrying out a search at his office in Andheri.
The episode came a day after the director of Bhopal-based Jayshri Gayatri Food Products, a suspect in another ED probe, tried to end her life.
A senior inspector from the Maharashtra Industrial Development Corporation (MIDC) police station confirmed to ThePrint that Nandwana’s family had not held the ED responsible for the 62-year-old’s death, so far.
“The family informed us about the history of (Nandwana’s) ailment. They didn’t give any complaint, or did not allege any harassment that could have led to his death,” the senior police officer said. “It was the ED that informed us about Nandwana’s condition, and he was taken to the hospital.”
Asserting that the autopsy would confirm the cause of death, the officer said, it prima facie appeared to be a case of cardiac arrest.
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‘All protocols followed’
According to ED officials, a team from the Jalandhar zone was conducting searches at Nandwana’s office Friday as part of a money laundering probe in which it found the involvement of his firms. They refused to divulge further details of the case, citing the nascent stage of investigation.
The search proceedings were initially attended by the chief financial officer (CFO) of the company before Nandwana reached office around 11 a.m.
“All necessary protocols and procedures were followed by officers in part of the searches, and our officers accompanied Mr Nandwana when he complained of unease,” an ED official told ThePrint.
Nandwana had a history of heart disease, had undergone surgery in the past, and had stents in his heart, according to the police officer quoted above.
Calls for greater accountability
The death caused a stir, with many on social media calling for greater accountability from the central agencies.
In a post on ‘X’ (formerly Twitter), Aarin Capital chairman Mohandas Pai said searches without evidence “an assault on citizen rights”.
Dinesh Nandwana, founder of tech firm Vakrangee, dies during ED search in Mumbai The Indian Express. Searches without solid evidence is an assault on citizen rights Needs relook @narendramodi @FinMinIndia @PMOIndia @AmitShah https://t.co/80pqLtOQIK
— Mohandas Pai (@TVMohandasPai) February 1, 2025
While the Central Bureau of Investigation (CBI) and police require a search warrant under Section 96 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), it can carry out raids without a warrant in urgent matters under Section 185. However, for this, it needs to be cleared by an investigating officer or the in-charge of the police station where raids have to be carried out.
On the other hand, sources in the ED said that searches are carried out in “strict compliance” of Section 17 of the Prevention of Money Laundering Act (PMLA) that gives power to its officers to enter and search any building or facilities related to person or firm against whom they have “reasons to believe” of involvement in money laundering.
“The search proceedings begin only after an officer, at least led by an assistant director- level officer, gives in writing reasons to believe to persons whose premise or facilities are searched. Searches take place in strict compliance with Section 17 of the PMLA,” an ED official said.
“In the particular case, the search was conducted based on development in an ongoing investigation, and it was ED officers themselves who informed local police about the unfortunate incident.”
Recently, ED officials highlighted that the mechanism has been further strengthened and a nod is required from joint director- and special director-level officers before the searches are carried out.
Even Income Tax officers can carry out raids without a warrant under Section 132 of the I-T Act, but with the approval of a senior officer.
“No one conducts raids without carrying out background checks and available evidence. The ground for a raid is when the agency suspects that material, crucial to the investigation in a case, can be found at a location. For carrying out a raid, proper documentation is done,” an ED official explained.
Senior advocate Vikram Chaudhari said that agencies, such as the ED, which deal with cases under highly powerful acts, such as the PMLA, need to be more humane and sensitive towards the people under investigations since there is higher threshold for searches and investigations.
“Searches without possession of objective and justifiable reasons to believe is a serious violation of Article 21 of the Constitution that guarantees right to life and liberty,” he told ThePrint. “These searches lead to ruining of reputation and people with weak mental toughness cannot digest erosion of hard-earned reputations for the whims and fancies of officers.”
“There should be sensitisation of the department to bring more maturity, restraint and calmness instead of euphoria. An intensive investigation ought not to be a publicity exercise,” the advocate added.
The frequent search and seizure operations conducted by the ED often violate settled principles of law, according to senior advocate Vikas Pahwa.
“There have been numerous instances where individuals have been detained for over 15 to 18 hours during searches, forced to participate in proceedings through the night, and ultimately arrested—even when they have cooperated with the investigation,” he said.
The power of search and seizure should be exercised only when the ED has gathered reasonable material to establish prima facie guilt, the senior advocate said. “In money laundering cases, the threshold for arrest and attachment is much higher than in general offences, yet this fundamental distinction is often overlooked.”
(If you are feeling suicidal or depressed, please call a helpline number in your state)
(Edited by Sanya Mathur)
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The ED and CBI must be geld accountable. Rogue and corrupt officers abound in both organisations and routinely abuse their powers and privileges to harass and intimidate citizens. It’s high time both these agencies are held responsible for their misdeeds and action taken against the high-handed officials.