Court dismissed a petition to quash money laundering prosecution under PML Act. While prosecution against one co-accused was previously quashed due to lack of proceeds of crime, petitioners are distinct. Observed facts do not quash proceedings against them; case proceeds on merits.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
RESERVED ON : 21.03.2022 PRONOUNCED ON : 04.04.2022 CORAM THE HONOURABLE MR.JUSTICE P.N.PRAKASH AND THE HONOURABLE MR.JUSTICE A.A.NAKKIRAN
CRL.O.P.NO.10303 OF 2018
1.K.G.Ramesh @ Murali 2.K.PR.Ramanathan
.. Petitioners/ Accused 2 & 4
Vs.
The Assistant Director Directorate of Enforcement Government of India Ministry of Finance, Department of Revenue 2nd & 3rd Floor, C-Block Murugesa Naicker Complex 84, Greams Road Chennai 600 006
.. Respondent/ Complainant
Criminal Original Petition filed under Section 482 Cr.P.C. to call for the records relating to C.C.No.14 of 2017 pending on the file of the Principal Sessions Judge (Special Court constituted under Section 43(1) of the Prevention of MoneyLaundering Act), 2002, Chennai and quash the same.
For Petitioner No representation For Respondent Mr.Rajnish Pathiyil Special Public Prosecutor for Enforcement Directorate
O R D E R
P.N.PRAKASH, J.
This Criminal Original Petition has been filed to quash the proceedings in C.C.No.14 of 2017 pending on the file of the Principal Sessions Court (Special Court for Prevention of MoneyLaundering Act Cases), Chennai.
quashing which, A.2 and A.4 have filed the instant quash petition.
"5.1. Information was received in the office of the Complainant herein, that pursuant to the written complaint under Ref.No.7918/COP/VISITORS/2008 by one Shri.D.Nagarajan to the Commissioner of Police, Chennai City Police, Chennai alleging illegal arrogation of the land measuring 33 cents comprised of in S.No.47/1 and 47/2 of Valasaravakkam village purchased by his wife Smt.N.Mangalam from Shri.K.Kamalakannan on 06.07.1973 under the sale deed registered as Doc.No.2396/1973 of SRO, Kodambakkam and another extent of land measuring 331/5 cents comprised of in S.No.47/2 of Valasaravakkam village purchased by Smt.R.Alamelu, wife of his brother, Shri.D.Rajaram from Shri.K.Kamalakannan on 06.07.1973 under the sale deed registered as Doc. No.2395/1973 of SRO, Kodambakkam, the CCB, Chennai City Police, Chennai has registered an FIR in Crime No.34/2009 dated 28.01.2009 (Annexure-I) against S/Shri.Rajesh, Arokiyasamy, K.G.Ramesh Raj, R.S.Narayanan, N.Vasan, K.P.R.Ramanathan and accordingly initiated investigation.
5.2. Subsequently, the CCB, Chennai City Police, upon completion of the said investigations filed its Final Report before Hon'ble XI Judicial Magistrate, Saidapet, Chennai under Section 173(2) Cr.P.C. had arraigned S/Shri.K.G.Ramesh Raj @ Murali, S/o.Ganesan, R.S.Narayanan, S/o.K.S.Raghunathan, K.P.R.Ramanathan, S/o.Periyakaruppan, N.Vasan, S/o.Nagarajan, R.Arokiyasamy, S/o.Rajamanickam Pillai and T.Rajesh, S/o.P.Thangappan accused of committing of offences punishable under Sections 420, 465, 467, 468, 471 read with 120-B IPC in the fraudulent grabbing of vacant land with an extent of 14,472 sq.ft. each held in the names of Smt.Mangalam and Smt.Alamelu Ammal totally measuring 0.67 cents comprised of in S.No.47/2A2, 47/1B and 47/2A3 of Valsaravakkam village by resorting to fabrication of documents and forgery. The aforesaid Final Report filed on 16.04.2010 was taken
into cognizance in C.C.No.5718/2010 (Annexue-II) of the Hon'ble XI Judicial Magistrate Court.
5.3. On the basis of the aforesaid information and the offences arraigned in the aforesaid FIR No.34/2009 dated 28.01.2009 being scheduled offences in terms of Sections 2(1)(x) & 2(1)(y) of the Act, inasmuch as an offence of money laundering as defined under Section 3 of the PMLA, prima facie appeared to had been committed, an Enforcement Case Information Report (ECIR) No.11/2011, dated 09.03.2011 (Annexure-IV) was registered by the Directorate of Enforcement, Chennai, for investigation of the offence of money laundering under the PMLA.
5.4. Later on 15.11.2016, the CCB, Chennai City Police has filed a Revised Final Report in C.C.No.66/2013 (Annexure-III) before Hon'ble Special Metropolitan Magistrate (Land Grabbing Cases)-II, Periamet, Chennai, under Section 173(2) of charging S/Shri.G.Ramesh Raj @ Murali, R.S.Narayanan, R.Arokiyasamy, T.Rajesh, K.P.R.Ramanthan, N.Vasan, Suruli Andavar, Karthikeyan, Smt.Saraswathi, Smt.Mynavathy and Shri.Naidu Amrutesh Reddy accused of committing of offences punishable under Sections 420, 465, 467, 468, 471 read with 120-B IPC. It has been charged that Shri.T.Suruli Andavar, S/o.V.Thavamani Thevar with the active connivance of other accused persons had fraudulently caused the cancellation of earlier patta in respect of the aforesaid extents of land and its transfer in his name by resorting to falsification of registration with Document No.1427/1967 dated 12.04.1967 of SRO, Saidapet, Chennai, through a forged sale deed thereby insinuating a deceptive conveyance of the entire land extents in his name by Shri.Kamalakannan. It has also been charged that Shri.Suruli Andavar by deviously transferring the funds that were disbursed towards the ostensible sale consideration to S/Shri.G.Ramesh Raj, R.S.Narayanan and others had depicted the conspiracy to illegally arrogate aforesaid extents of land and to share the benefits derived out of such activity with his associates. Also it has been charged that Shri Naidu Amrutesh Reddy, S/o.Naidu Adikesava Reddy despite having knowledge on the encumbrance in the aforesaid extents of land and the pendency of the related criminal investigation had connived with the other perpetrators of crime and had instigated its fraudulent conveyance to him.”
"11.6. Shri.K.G.Ramesh Raj by conniving in criminal acts of forgery of documents and its representation as genuine documents in furtherance of a criminal conspiracy in association with Shri T.Suruli Andavar and others had caused the fraudulent conveyance of the aforesaid extents of land held by Smt.N.Mangalam and Smt.R.Alamelu ultimately to Shri.Naidu Amrutesh Reddy, despite his knowledge on the encumbrance in the said land and the pendency of the related criminal investigation. Thus, Shri. K.G.Ramesh Raj by resorting to criminal activities as elucidated above, though passively had facilitated the illegal arrogation of the aforesaid extents of land/immovable property, which are the “proceeds of crime” as defined under Section 2(1)(u) of PMLA. Also, Shri.K.G.Ramesh Raj in order to facilitate placement, layering and integration of the funds disbursed towards the devious sale consideration to Shri. T.Suruli Andavar, had structured its disbursements into the S.B.A/c.No.16530100004742 caused to be opened in the name Shri. T.Suruli Andavar
with IOB, Alandur Branch proximately prior to the subject transaction. Such funds derived as a corollary of criminal activities as aforesaid, which are nothing but the “proceeds of crime” as defined under Section 2(1)(u) of PMLA so remitted to the above mentioned account were instantly either transferred to different accounts or withdrawn in cach in the names of the persons/entities, who were found to be without any entitlement on the aforesaid property or any nexus with the subject transaction without any rational or plausible justification and without any other genuine underlying dealings. Hence, Shri.K.G.Ramesh Raj by orchestrating the placement and layering of the “proceeds of crime” for its ultimate integration typical of the ingredients of money laundering and by asserting himself as the feigned tenant of the aforesaid extents of land has actually involved himself in the process or activity connected to the “proceeds of crime” and by dissipating the purported sale consideration to his accomplices and to himself through a devious process of fund transmission camouflaging its actual source has been projecting it as untainted.”
“11.8. Shri.K.PR.Ramanathan by indulging in criminal acts of forgery of documents and its representation as genuine documents in furtherance of a criminal conspiracy with the active connivance of his associates had for a consideration facilitated the fraudulent arrogation of the aforesaid extents of land owned by Smt.N.Mangalam and Smt.R.Alamelu by illegally creating a Power of Attorney as assigned by Smt.Alamelu in favour of himself in the year 2008 and by the fraudulent execution of a Sale Agreement dated 12.06.2008 registered as Document No.3139 of 2008 of the SRO, Virugambakkam for the sale of the land extent held by Smt.Alamelu to Shri.N.Vasan while Smt.Alamelu had deceased on 20.12.2003 itself. Thus, Shri.K.PR.Ramanathan has actually involved himself in the process or activity connected to the “proceeds of crime” and has aided in its projection as untainted.”
on the file of the Special Court for PML Act Cases, Chennai, as against Naidu Amrutesh Reddy (A.1) in Crl.O.P. No. 5099 of 2018 on 14.03.2022, on the simple ground that he had paid Rs.4.33 crores to Suruli Andavar and K.G.Ramesh Raj/1st petitioner for the land in question, believing that Suruli Andavar is the true owner and that he had not generated any proceeds of crime nor projected any proceeds of crime as untainted one. But, the petitioners stand on a different footing and therefore, the prosecution against them in C.C.No.14 of 2017 on the file of the Special Court for PML Act Cases, Chennai, cannot be quashed.
In the result, this criminal original petition is dismissed as being devoid of merits. It is made clear that whatever observed in this order is only for the limited purpose of deciding this quash petition and the proceedings in C.C.Nos.66 of 2013 and 14 of 2017 on the file of the XI Metropolitan Magistrate Court and the Special Court for Prevention of Money-Laundering Act Cases, Chennai, respectively, shall be decided on their own merits, without being influenced by the observations made in this order.
Sd/-
Assistant Registrar
//True Copy//
Sub Assistant Registrar
gya
To
+1cc to Mr.Rajnish Pathiyil, Advocate, S.R.No.22531
CRL.O.P.No.10303 of 2018
SKM(CO) PM/18/04/2022
2 issues framed by the court
Whether the prosecution in the Prevention of Money Laundering Act case against the petitioners can be quashed on the ground of lack of prima facie materials for their specific involvement.
Whether the facts of money laundering alleged against the petitioners differ significantly from the facts considered in a related quash petition allowing Proceedings against another accused.
3 provisions across 3 enactments
K.G.Ramesh @ Murali
K.PR.Ramanathan
The Assistant Director Directorate of Enforcement
P.N.PRAKASH
A.A.NAKKIRAN
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
