Money laundering case quashed, Janardhan Reddy smiles
Court observed that an amendment made to Prevention of Money-Laundering Act in 2009 cannot be imposed in retrospective effect to 2004 case.
Bengaluru: Karnataka High Court on Monday quashed proceedings under the Prevention of Money Laundering Act against former minister Janardhan Reddy, his wife Aruna Lakshmi, Obalapuram Mining Company and Brahmani Industries Ltd.
The court passed the orders after observing that an amendment made to the Prevention of Money-Laundering Act in 2009 cannot be imposed in retrospective effect to a 2004 case.
Property attached
The Enforcement Directorate had attached movable and immovable properties worth around Rs 900 crore of Brahmani Industries Ltd of Mr Reddy.
The Enforcement Directorate had filed the money laundering case against Mr Reddy and others after the Central Bureau of Investigation filed a case under various sections of the Indian Penal Code, and the Prevention of Corruption Act.
The Central Bureau of Investigation had found out that Obalapuram Mining Company had illegally mined iron ore valued Rs 884.13 crore between 2007 and 2010 and had invested the proceeds in BIL in the form of shares.
Separate cases
The Enforcement Directorate had separately initiated cases against Mr Reddy, his wife and associates under PMLA and was probing allegations of money laundering against them.