Aryan Grover
A division bench of the Madras High Court has quashed the complaint filed against S Dilli Raj under the Prevention of Money Laundering Act, 2002.
Filed by the Enforcement Directorate, the plaint was regarding the default of bank borrowings by First Leasing (FLCI).
In accordance with the order of the High Court, S Dilli Raj left the services of First Leasing (FLCI) back in 2007, and that FLCI was making due repayments of its bank borrowings till 2013.
The speaking order of the court records that Dilli Raj is not a beneficiary of the Proceeds of Crime and even according to the Enforcement Directorate, he only received the salary, bonus, and perks of an employee.
The bench thus observed, “The salaries drawn by S DilliRaj can by no stretch of imagination be construed as Proceeds of Crime.”
The High Court refused to be persuaded by the Enforcement Directorate’s arguments which claimed that the salaries and perquisites that were paid to Dilli Raj while he was still in employment with the FLCI would amount to “proceeds of crime”, and that any property purchased him should stand tainted.
The High court quashed the criminal complaint and termed the impugned prosecution of Dilli Raj under the PMLA as miconceived.