Allowed¶35

Star Forex India Pvt. Ltd. v. Directorate of Enforcement

Madras HC6 Mar 2025CRL OP/25746/2022

Case brief

AI extract

What is this about?

PMLA quashing on acquittal of predicate offence; predicate offence C.C.No.18127 of 2005 ended in acquittal under Section 248(i) CrPC; Enforcement Directorate proceedings in C.C.No.23 of 2019 before Principal Sessions Judge, Chennai quashed; Vijay Madanlal Choudhary v. Union of India, 2022 SCC OnLine SC 929, para 467(v)(d) applied; Section 482 CrPC quash petition; petitioners M/s.Star Forex India Pvt. Ltd., S.Nelson, S.Rajendran, S.Naganathan; Crl.O.P.No.25746 of 2022; Madras High Court; decided 06.03.2025.

What did the court decide?

Quashing of the proceedings in C.C.No.23 of 2019 pending before the learned Principal Sessions Judge, Chennai; Criminal Original Petition allowed with no costs; connected miscellaneous petition (Crl.M.P.No.15947 of 2022) closed. ¶35

Star Forex India Pvt. Ltd. Vs Directorate of Enforcement — Money Laundering | Madras HC (2025)

¶1

Crl.O.P.No.25746 of 2022

¶2

IN THE HIGH COURT OF JUDICATURE AT MADRAS

¶3

DATED : 06.03.2025

¶4

CORAM :

¶5

THE HONOURABLE MR. JUSTICE M.S. RAMESH AND

¶6

THE HONOURABLE MR. JUSTICE N. SENTHILKUMAR

¶7

Crl.O.P.No.25746 of 2022 and Crl.M.P.No.15947 of 2022

¶8

1.M/s.Star Forex India Pvt. Ltd., Rep. by its Director Mr.S.Nelson, (i) Registered address No.1, Ellis Road, Mount Road, Chennai – 600 002. and (ii)No.35, Amman Complex, 1 Floor, Kodambakkam High Road, Chennai – 600 034.

¶9

2.Shri.S.Nelson, Director of M/s.Star Forex India Pvt. Ltd., No.33-A, Thilli Nagar, Ram Nagar, Devakottai, Sivagangai District.

¶10

3.Shri.S.Rajendran 4.Shri.S.Naganathan ... Petitioners

¶11

Vs.

¶12

Directorate of Enforcement, Rep. by its Asst. Director, Government of India, Ministry of Finance, Department of Revenue, 2^nd & 3^rd Floor, Murugesa Naicker Complex, No.84, Greams Road, Chennai – 600 006. ... Respondent

¶13

Page 1 of 6 https://www.mhc.tn.gov.in/judis

¶14

Crl.O.P.No.25746 of 2022

¶15

Prayer:

¶16

Prayer: Criminal Original Petition filed under Section 482 of Criminal Procedure Code, praying to call for the records pertaining to the case in C.C.No.23 of 2019 on the file of the learned Principal Sessions Judge at Chennai, quash the same by allowing this quash petition.

¶17

F or Petitioners : Mr.T.Gowthaman, Senior Counsel for Mr.R.Swarnavel For Respondent : Mr.Rajinish Pathiyil, Special Public Prosecutor (E.D)

¶18

ORDER

¶19

(Order of the Court was made by M.S.RAMESH, J. )

¶20

This Criminal Original Petition has been filed challenging the order

¶21

of the learned Principal Sessions Judge, Chennai dated 27.04.2019 passed in C.C.No.23 of 2019.

¶22

2. Heard the learned senior counsel for the petitioners, as well as the

¶23

learned Special Public Prosecutor appearing for the respondent.

¶24

3. Though the learned Special Public Prosecutor appearing for the

¶25

respondent has raised several objections with regard to the prayer sought

¶26

Page 2 of 6 https://www.mhc.tn.gov.in/judis

¶27

Crl.O.P.No.25746 of 2022

¶28

for by the petitioners herein, the learned senior counsel would submit that the Hon'ble Supreme Court of India in the case of 'Vijay Madanlal Choudhary & others Vs. Union of India & others' reported in '2022 SCC OnLine SC 929' in paragraph 467(v)(d) has held that when the predicate offence for which the Enforcement Directorate has initiated proceedings had ended in acquittal, the prosecution cannot be proceeded any further under PMLA Act. In the instant case, in the predicate offence in C.C.No.18127 of 2005, the petitioners herein were acquitted from the charges. The relevant portion of which reads as follows:-

¶29

....... “(xxvii) Considering the facts and circumstances this court comes to the conclusion is that the prosecution side failed to prove the offence against the accused A1 for the offences U/s.420 of IPC and A2 to A4 for the offences U/s. 120B r/w.419, 420, 467, 468 and 471 IPC beyond all reasonable doubts and the benefit of the doubts are given to the accused and the accused are not found the guilty of the above said offences and they are acquitted in the above charges and under section 248 (i) of The Code of Criminal Procedure, 1973. ”

¶30

4. In view of the law laid down by the Hon'ble Supreme Court in

¶31

Page 3 of 6 https://www.mhc.tn.gov.in/judis

¶32

Crl.O.P.No.25746 of 2022

¶33

Vijay Madanlal Choudhary's case (supra), the respondent herein will not have an authority to proceed any further with the proceedings in C.C.No.23 of 2019, which is pending with the learned Principal Sessions Judge, Chennai.

¶34

5. Accordingly, the proceedings in C.C.No.23 of 2019 pending on

¶35

the file of the learned Principal Sessions Judge, Chennai, is hereby quashed and this Criminal Original Petition stands allowed. No costs. Connected miscellaneous petition is closed.

¶36

[M.S.R, J.] [N.S, J.]

¶37

06.03.2025

¶38

Index: Yes/No Speaking order/Non-speaking order Internet: Yes/No

¶39

Sni

¶40

Page 4 of 6 https://www.mhc.tn.gov.in/judis

¶41

Crl.O.P.No.25746 of 2022

¶42

¶43

Assistant Director of Directorate of Enforcement, Government of India, Ministry of Finance, Department of Revenue, 2^nd & 3^rd Floor, Murugesa Naicker Complex, No.84, Greams Road, Chennai – 600 006.

¶44

Page 5 of 6 https://www.mhc.tn.gov.in/judis

¶45

Crl.O.P.No.25746 of 2022

¶46

M.S.RAMESH, J. and N. SENTHILKUMAR, J.

¶47

Sni

¶48

Crl.O.P.No.25746 of 2022

¶49

06.03.2025