TMI Blog2022 (3) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... the bribe monies received by him in that account. Can 'A' be prosecuted along with 'B' under the Prevention of Corruption Act, 1988 ? The answer is an obvious 'No'. So too, VMT Mills, in whose name, Srinivasan had opened a fake bank account in Bank of Baroda, Udumalpet Branch and had parked ₹ 17,05,277/-, cannot be prosecuted for money laundering. The prosecution of VMT Mills under Sections 3 and 4 of the PML Act is an abuse of process of law and accordingly, this criminal original petition is allowed. - CRL.O.P.No.3890 of 2017 AND CRL.M.P.No.2885 of 2017 - - - Dated:- 27-1-2022 - THE HONOURABLE Mr. JUSTICE P. N. PRAKASH AND THE HONOURABLE Ms. JUSTICE R. N. MANJULA For the Petitioner : Mr.B.Kumar Senior Counsel for Mr.I.Abrar Mohammed Abdullah For the Respondent : Ms.G.Hema Special Public Prosecutor for Enforcement Directorate ORDER P. N. PRAKASH , J. This Criminal Original Petition has been filed to quash the proceedings in C.C.No.56 of 2016 on the file of the Principal Sessions Court, Chennai, as against the petitioner herein. 2. The minimum facts that are required for deciding this quash petition are as under : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Rajesh (A6). 2.6. Since the case in DCB Crime No.27/2009 that was launched by Ari Fabrics Ltd. disclosed the commission of a 'scheduled offence' under the Prevention of Money Laundering Act, 2002 (in short the PML Act ), the Enforcement Directorate registered a case in ECIR No.31/CEZO/PMLA/2009 on 31.10.2009 and took up investigation of the case. After completing the investigation, the Enforcement Directorate has filed a complaint in C.C.No.56/2016 in the Special Court for PML Act Cases, Chennai (Principal Sessions Judge, Chennai) for the offences under Sections 3 and 4 of the PML Act against Srinivasan (A1), VMT Mills represented by its Director D.Sudha (A2), Selvakumar (A3) and R.Manoharan (A4), for quashing which, VMT Mills has filed this Criminal Original Petition under Section 482 Cr.P.C. 3. Heard Mr.B.Kumar, learned Senior Counsel representing Mr.I.Abrar Mohammed Abdullah, learned counsel on record for VMT Mills and Ms.G.Hema, learned Special Public Prosecutor for the respondent/ Enforcement Directorate. 4. During the course of investigation by the Enforcement Directorate, they found a sum of ₹ 17,05,277/- parked in the fake Current Account No.287802 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above said fraudulent account of M/s.Ari Fabrics Ltd. with Bank of Baroda, Udumalpet Branch from the account of M/s.Bhagavathi Textiles, a non-existing entity. The above said amount of ₹ 1,89,00,000/- was part amount of the total loan amount of ₹ 15 crores obtained in the name of M/s.Bhagavathi Textile Mill from M/s.Global Trade Finance by way of furnishing bogus and fake bills. Similarly, Shri G.Srinivasan took over/acquired M/s.VMT Spinning Mills India Pvt. Ltd., on the condition that upon running of the Mill, the loan of ₹ 10 Crores availed from IOB, Kollupalayam, Coimbatore in the name of the company would be redeemed. Whereas, Shri.G.Srinivasan had paid only an amount of ₹ 2.25crores to IOB, Kollupalayam Branch and thereafter without making any payments had diverted the sale proceeds of the cotton yarn manufactured in the said mill to various other accounts held in the Bank of Baroda, Udumalpet Branch. In order to enable such diversion Shri G.Srinivasan also opened a current account in the name of M/s.VMT Spinning Mills India Pvt. Ltd., with the said Bank of Baroda by furnishing a fabricated board resolution passed purportedly by the Board of Directors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 277/-, which was parked by Srinivasan in the fake account of VMT Mills that was opened by him in the Bank of Baroda, Udumalpet Branch, without the knowledge of the true owners of the mill. 11. Doraisamy died on 10.09.2009, after which his widow and daughter continued with the struggle to get back VMT Mills from the vice grip of Srinivasan. At last, through the proceedings in C.P.No.26/2010 in the Company Law Board, Chennai, the management of VMT Mills came back into the hands of Doraisamy's family from Srinivasan, as could be seen from the order dated 23.07.2014. Even in the Memorandum of Compromise dated 23.07.2014, that was entered into between the family members of late Doraisamy and Srinivasan group, which formed the basis of the order in C.P.No.26/2010, it is stated as follows : 9. The parties of the third part (here, it means Srinivasan party) while managing the affairs of the Company has operated the bank account of the company and opened accounts in Bank of Baroda in the name of the Company and put through various transactions which are in no way connected with the affairs of the company or the parties of the second part (here, it means the family members of l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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