CHENNAI: Madras high court on Tuesday quashed a money laundering case registered by Enforcement Directorate (ED) against former minister and DMK leader K Ponmudy. The court passed the order since Ponmudy was acquitted in the predicate offence based on which ED registered the case.The issue pertains to alleged irregularities in awarding licence for mining red sand when Ponmudy was a minister for mines and minerals during 2007-2011.“Admittedly, the trial court by judgment dated April 2, had acquitted all the accused who are facing trial in the case, and thereby the entire predicate case against the accused who are the petitioners herein had ended in acquittal,” the first bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G Arul Murugan said.Therefore, in view of the decision of Supreme Court in the case of Vijay Madanlal, when the predicate case against the petitioners had ended in acquittal, the prosecution pending before the special court under the Prevention of Money Laundering Act (PMLA) cannot be allowed to proceed, the bench said.According to Ponmudy, ED had registered the money laundering case based on an FIR registered by the Villupuram police against him, his son and others, for offences under Sections 379, 406, 420, 120-B IPC and Section 21(1) of the IPC and the Mines & Minerals (Development & Regulation) Act.It was alleged that Ponmudy, who was the minister for mines and minerals between 2007 and 2011, conspired with his son and others, and allocated licences to quarry red earth to his son, his friend and his brother-in-law. All such licence holders had quarried red earth over and above the permitted quantities without paying seigniorage fees to govt, causing a 28.37 crore loss to the exchequer.On April 2, the sessions court acquitted the former minister of the charges and held that there was no nexus between the grant of the lease and alleged illegal gain or conspiracy.Relying on the acquittal, Ponmudy moved high court seeking to quash the money laundering case. “As per settled proposition of law, once an accused was discharged/acquitted from the predicate offence, the prosecution under the PMLA would no longer exist and was liable to be quashed,” he said.
