Hyderabad: Justice K. Surender of the Telangana High Court stayed all further proceedings with respect to Varanasi Dileep in a case under Section 3 and 4 of Prevention of Money Laundering Act (PMLA) pertaining to a Rs 73 crore bogus letter of credit (LC) fraud. The Enforcement Directorate had initiated the money-laundering investigation into the petitioner and Khagesh Kachhwal on basis of an FIR registered by the CBI, Chennai, against RE Cables & Conductors Private Ltd (RECC) and others for alleged misappropriation of SBI funds and causing wrongful loss of Rs 74.8 crore.
Investigation by the ED revealed that Kachhwal and Dileep were the biggest providers in Hyderabad under whose assistance and guidance the RECC had fraudulently misutilised the credit facilities availed from banks.
Counsel for the petitioner Dileep submitted that the High Court had stayed the investigation against Kachhwal on the ground that prosecution for illegal gain of property did not arise if the accused was discharged or acquitted in the alleged scheduled offence.
He submitted that the petitioner stood on the same footing and initiation of proceedings under PMLA was an abuse of process of law. The court while staying the proceedings before the Metropolitan Sessions Judge and Special Court under Prevention of Money Laundering Act 2002 at Nampally till December 12, directed counsel for the Enforcement Directorate to file a counter....