Madras HC stays order to release Rs 3 crore attached in money laundering case
Chennai: The Madras high court has stayed an order of the Appellate Tribunal, Prevention of Money Laundering Act, which directed the Enforcement Directorate (ED) to release Rs 3.63 crore attached/seized from two companies based in Mumbai in connection with a money laundering case against conmen Sukash Chandrasekar, allegedly involved in various crimes.
A division bench comprising Justices MM Sundresh and R Mahadevan granted the interim stay for four weeks on an appeal filed by the Joint Director of ED, to quash an order of the Appellate Tribunal dated March 23, 2017.
Originally, on a complaint from Canara Bank, Chennai, the Central Crime branch, TN police, Chennai had on March 19, 2013, registered an FIR against a bank official and two directors of M/s Future Techniks Pvt. Ltd for cheating to the tune of '19.21 crore. The funds were transferred to various accounts held in various banks through 20 RTGS transactions and these transactions did not appear to be in the normal course of business.
The bank apprehended high risk to the public money involved in these transactions. Based on its complaint, the CCB registered the case. During the investigation, it came to light, the involvement of the prime accused Sukash Chandrasekar and others. Sukash Chandrasekar was arrested by Delhi police and Chennai police in a joint operation in July/August 2013 at Delhi. Various bank accounts of several companies were attached which included the two Mumbai-based companies M/s Mangal Royal Jewels and Mangal Bullion. The adjudicating authority also confirmed the attachment. Aggrieved, Meghraj Jain and Ajit Jain, the directors of these companies filed appeals and the Appellate Tribunal directed the ED to release '3.63 crore out of '4.61 crore attached from these two companies. Challenging this order, the ED has filed the present appeals.
In its appeal, the ED submitted that the Appellate Tribunal has failed to consider that the transactions amounting to Rs 3.63 crore from the hands of these two companies were clearly proved as interconnected activities of money laundering.
The burden had devolved on Ajit Jain and Meghraj Jain to prove that the amounts disbursed by Future Techniks as stated by Sukash Chandrasekar, were not at the instance of Mangal Royal Jewels and Mangal Bullion with regard to their commercial dealings with other companies, the ED added.
