The Supreme Court has upheld the decision of the High Court to strike down the investigation by the Enforcement Directorate (ED) into the alleged multi-crore sand mining scam in the state. Along with the investigation, the ED's move to attach properties of miners and their associates—on the grounds that they were "proceeds of crime"—has also been set aside. A bench of justices dismissed the ED’s appeal against the High Court’s July 16, 2024, order.

The High Court had previously clarified that the central issue was not whether illegal sand mining had occurred, but whether the ED could act under the Prevention of Money Laundering Act (PMLA) without another competent agency investigating a predicate offence and without a clear determination of proceeds of crime. The Supreme Court agreed with this reasoning, noting that unless the proceeds of crime are clearly established and linked to a scheduled offence, action under PMLA cannot be sustained. The court referred to its previous ruling, emphasizing that mere possession of unaccounted wealth does not automatically qualify as "proceeds of crime."

In its detailed order, the High Court bench had also observed that while courts typically do not interfere in investigations, they cannot allow citizens to be exposed to arbitrary actions by investigating officers. Since the ED’s initiation of proceedings under PMLA lacked proper legal grounds, the bench rejected the agency’s argument that judicial interference was unwarranted.

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