Punishment as part of a secret investigation, that you're not notified of or have a chance to defend yourself against in court, sounds rather undemocratic*.

*This word is sadly misused to mean "any unjust system of government". E.g. it is perfectly possible to have a constitutional monarchy, the antithesis of democracy, that respects the right to a fair trial and to face your accuser. Conversely, things people vote for are routinely dismissed as "undemocratic" - in that case, it gets called "populism". As far as I can tell, the words, as (ab)used, have nothing to do with the method of government, and everything to do with the outcome.