By Express News Service
NEW DELHI: The Supreme Court on Thursday quashed a Prevention of Money Laundering Act (PMLA) case filed by the Enforcement Directorate against industrialist Sekar Reddy. The court, which set aside a Madras High Court order that dismissed his plea seeking quashing of the proceedings, said the ED is unable to collect and produce before the court any incriminating material even after more than five years to prove its case beyond reasonable doubt.
Sekar Reddy“We are of the firm opinion that chances to prove those allegations in the court are very bleak… The HC by the impugned order has recorded the finding without due consideration to the letter of the I-T Department and other material in right perspective. Therefore these findings of the HC cannot be sustained,” the Supreme Court said in its order.
“Accordingly, we set aside the impugned order passed by the HC. Consequently, this appeal is allowed. EC R CE ZO 19/2016 including complaint bearing No. 2 of 2017 stands quashed,” the order said. In December 2016, the Income Tax Department, Chennai, conducted searches on Sekar Reddy’s official premises and seized a large amount of currency notes and gold.
CBI registered case against Sekar Reddy in 2016
Subsequently on December 19, 2016, the CBI registered a case against Sekar Reddy and two others over seizure of Rs 33.75 crore in newly printed Rs 2,000 notes from the premises linked to Reddy and his partners in SRS Mining Company by I-T officials.
The Enforcement Directorate registered separate cases in 2016 against the appellant and others. The CBI also registered two more FIRs in December 2016. Based on a bail application filed by Sekar Reddy before the Principal Special Judge for CBI Cases, Chennai, the court granted him bail in March 2017. Later on, the Madras HC quashed the new CBI FIRs. The I-T Department also closed its investigation saying that taxes were paid by the industrialist for the money found on his premises.
