More trouble for Sukesh Chandrasekhar

The Madras High Court on Wednesday stayed an order of the Appellate Tribunal, Prevention of Money Laundering Act, New Delhi, which directed the Enforcement Directorate (ED) to release Rs 3.63 crore seized from two Mumbai-based companies in connection with a money-laundering case involving Sukash Chandrasekhar. 

A division bench comprising Justices MM Sundresh and R Mahadevan while admitting an appeal moved by Joint Director, Directorate of Enforcement, Chennai, seeking to quash an order of the Appellate Tribunal issued on March 23, 2017, granted an interim stay for four weeks.

On a complaint from Canara Bank, Chennai, the Central Crime branch (CCB), Chennai had on March 19, 2013 registered an FIR against a bank official and two directors of M/s Future Techniks Pvt. Ltd for cheating to the tune of Rs 19.21 crore. 

The funds were transferred to various accounts held in various banks through 20 Real Time Gross Settlement (RTGS) transactions. But these transactions failed to appear in the normal course of business. Following this, the bank on apprehending high risk to the public money involved in these transactions had lodged the complaint. 

During investigation, it came to light that the transaction involved prime accused Sukash Chandrasekar and others. He was arrested by Delhi police and Chennai police in a joint operation in July/August 2013 at Delhi. Various bank accounts of several companies were attached which included the two Mumbai-based companies’ M/s Mangal Royal Jewels and Mangal Bullion.

Aggrieved, Meghraj Jain and Ajit Jain, the directors of these companies filed appeals and the Appellate Tribunal in its interim order on March 23 had directed the ED to release Rs 3.63 crore out of Rs 4.61 crore to the two companies. Challenging this order, the ED has filed the present appeals. In its appeal, the ED submitted that the Appellate Tribunal has failed to consider that the transactions amounting to Rs 3.63 crore from the hands of these two companies was clearly proved as interconnected activities of money laundering and that Sukash Chandrasekhar and Ajit Jain had agreed to share the proceeds.