The Madras High Court has dismissed a writ Petition filed by the MGM group praying for restraining the Enforcement Directorate from initiating action under the Prevention of Money Laundering Act (PMLA).
The HC in its judgment has observed "The court cannot act as a stumbling block in the further progress of the investigation conducted by the respondent"
The Enforcement Directorate had initiated FEMA proceedings and also proceedings under PMLA against the Southern Agrifurane Industries Private Ltd, a distillery company owned by MGM Maran alias Nesamani Maran Muthu (MGM Group), for siphoning off foreign exchange that they had managed to send abroad in violation of FEMA Rules.
In this context, the Enforcement Directorate passed provisional orders of seizure of certain movable and immovable properties of the petitioner company.
Furthermore, PMLA proceedings were also initiated on the allegation that by misrepresentation of facts to the authorised dealer Bank, the petitioner had sent the valuable foreign exchange to the tune of Rs.216.40 Crores out of India and that the money has been siphoned off on the guise of investments by the Company outside India.
The company challenged the ED investigation under PMLA.
After hearing both, the Hon’ble Court . It is left open to the petitioner Company to submit their explanation to the respondent along with all supporting documents and we expect the respondent to proceed further with the investigation within the scope of PML Act. The Apex Court time and again has frowned upon interference into investigations conducted by the Investigation Agency since Courts are not expected to stall investigations, which falls within the exclusive domain of the executive, unless such an investigation is found to be without jurisdiction or there is misuse of power of investigation or such an investigation is an abuse of process of law.”
The Enforcement Directorate had initiated FEMA proceedings and also proceedings under PMLA against the Southern Agrifurane Industries Private Ltd, a distillery company owned by MGM Maran alias Nesamani Maran Muthu (MGM Group), for siphoning off foreign exchange that they had managed to send abroad in violation of FEMA Rules.
In this context, the Enforcement Directorate passed provisional orders of seizure of certain movable and immovable properties of the petitioner company.
Furthermore, PMLA proceedings were also initiated on the allegation that by misrepresentation of facts to the authorised dealer Bank, the petitioner had sent the valuable foreign exchange to the tune of Rs.216.40 Crores out of India and that the money has been siphoned off on the guise of investments by the Company outside India.
The company challenged the ED investigation under PMLA.
After hearing both, the Hon’ble Court . It is left open to the petitioner Company to submit their explanation to the respondent along with all supporting documents and we expect the respondent to proceed further with the investigation within the scope of PML Act. The Apex Court time and again has frowned upon interference into investigations conducted by the Investigation Agency since Courts are not expected to stall investigations, which falls within the exclusive domain of the executive, unless such an investigation is found to be without jurisdiction or there is misuse of power of investigation or such an investigation is an abuse of process of law.”