Madras High Court Quashes ED's Money Laundering Proceedings Against DMK MP Jagathrakshakan

The Madras High Court recently quashed Enforcement Directorate proceedings against DMK MP S Jagathrakshakan. A bench of Justice PN Prakash and Justice RMT Teeka Raman allowed the petition filed by the Minister after observing that the FIRs in the predicate offense were already quashed by a single judge.

A case was registered against Jagathrakshakan in 2007 for forgery and cheating. The CBCID had filed a closure report on the ground of mistake of fact. Later, even though the CBCID had filed an application for further investigation, the same was rejected by the Judicial Magistrate. On appeal, the Additional District and Sessions Judge allowed the CBCID to conduct further investigation. 

In the meanwhile, since the FIRs disclosed commission of predicate offence under the Prevention of Money Laundering Act, the Enforcement Directorate filed a case and issued summons to the Minister. Challenging this, the petitioner approached the High Court.

While seeking to quash the proceedings under the Money Laundering Act, the petitioners relied on the decision of the Supreme Court in Vijay Madanlal Choudhary and others v. Union of India and others. In this case, the Supreme Court observed that If the person is finally discharged/acquitted of the scheduled offence or the criminal case against him is quashed by the Court of competent jurisdiction, there can be no offence of money-laundering against him or any one claiming such property being the property linked to stated scheduled offence through him.

In light of the above judgment, the court allowed the petition filed by the Minister and set aside the proceedings under the Money Laundering Act.

Case Title: S Jagathrakshakan v The Deputy Director, Directorate of Enforcement

Citation: 2022 LiveLaw (Mad) 468

Case No: Writ Petition No.10854 of 2020

Counsel for the Petitioner: Mr.C.Manishankar, Senior Counsel for Mr.N.Senthil Kumar

Counsel for the Respondent: Mr.R.Sankaranarayanan Additional Solicitor General for Mr.Rajinish Pathiyil, Special Public Prosecutor [ED] 

Click here for the judgment