CHENNAI: The Enforcement Directorate's money laundering case against former minister and senior DMK leader K Ponmudy cannot continue following his acquittal in the predicate offence, said the Madras High Court.

Ponmudy had approached the High Court seeking to quash the case registered by the Directorate of Enforcement (ED) under the Prevention of Money Laundering Act (PMLA), following his acquittal in the predicate offence by the Sessions Court on April 2.

The case relates to alleged illegal red earth quarrying during his tenure as mines and minerals minister from 2007 to 2011. The prosecution alleged that Ponmudy had conspired with his son and others to allot quarry licences to his son, a friend, and his brother-in-law, who allegedly extracted red earth beyond the permitted limits without paying seigniorage fees, causing a wrongful loss of Rs 28.37 crore to the State exchequer.

Ponmudy submitted that the Sessions Court had acquitted him of all charges, holding that there was no link between the grant of the quarry lease and the alleged illegal gain or conspiracy.

Arguing that the PMLA case could not survive after his acquittal in the predicate offence, Ponmudy sought to quash the ED proceedings and an interim stay on further proceedings in the case, which is pending before the Special Court in Chennai at the stage of framing of charges.

After hearing the matter, the first bench of Chief Justice SA Dharmadhikari and Justice G Arul Murugan noted that, following the Supreme Court's judgment, the enforcement proceedings against Ponmudy and others could not continue.

When informed that the State government was considering an appeal against the acquittal order, the bench granted liberty to the Enforcement Directorate to proceed in accordance with law if there was any development in the predicate offence.